How Using AI Can Help Recruiters & HR Teams in Retail?

Author: TASC Outsourcing
Apr 02, 2024


The way we shop has remained quite familiar over the years – step into a store, find what you need, and make a purchase.

However, artificial intelligence (AI) is committed to revolutionizing this routine, pushing us into a new era of personalized, efficient, and automated retail experiences.

The exciting part? It's already underway!

AI services, specifically in the retail sector, are expected to climb from $5 billion to over $31 billion by 2028.

Since the introduction of ChatGPT, AI has been making waves in the business landscape, particularly in retail.

Research also indicates that the global AI in retail market is projected to reach USD 45.74 billion by 2032, demonstrating a CAGR of 18.45% from 2023 to 2032.

It’s pretty clear that AI is not just another buzzword. In fact, it's a tangible force reshaping how we experience retail.

From traditional brick-and-mortar stores to e-commerce platforms and, ultimately, the adoption of omnichannel strategies – the industry is redefining the shopping experience through technology.

In 2024, AI is bound to play an influential role in helping retailers enhance their operations, touching on various aspects, including HR and recruitment.

HR and Recruitment – What’s the Role of AI?

Did you know that the retail industry witnessed a 75.8% turnover rate (as per Korn Ferry Survey) among its hourly in-store job roles in 2022, which was 68% in 2021?

As per Beamery Survey that conducted interviews with 713 business leaders worldwide, about 54% of prominent retail leaders identify labour shortages as a big challenge. Because of pressing issues, it has become more necessary for businesses to examine Artificial Intelligence (AI) and automation for assistance.

AI has the potential to be a game-changer for HR teams, provided organizations know how to use it right.

Leveraging AI to Attract the Right Talent

When retail businesses start making the most of AI, they can transform how they find and onboard talent. From suggesting roles to candidates to reducing biases in the hiring process, there’s a lot AI can do. Let’s take a look –

Crafting Personalised Candidate Journeys –

Much like your consumers, candidates anticipate a smooth and individualized hiring experience. Therefore, creating tailored paths for candidates is now a must, not just in retail but across all industries. They also expect recommendations based on their past interactions and preferences.

Talent Acquisition (TA) teams can meet these evolving expectations by leveraging AI job matching. It can generate personalized suggestions for each candidate, aligning with their existing skills, related skills, capabilities, career objectives, and preferences. By integrating AI into the Careers Sites, Retailers can provide unique talent journeys that truly connect with candidates.

Keeping the Workforce More Diverse –

According to a Beamery Survey report, about 25% of participants reported that diversity and inclusion are major challenges of recruitment in the retail sector.

Now, the question is – how can HR and talent leaders in retail tackle this challenge and meet their diversity goals?

One solution would be to embrace AI for talent discovery. It can revolutionize the traditional, manual methods by uncovering potential candidates who might have slipped through the cracks. Using sophisticated algorithms, AI zooms in on the specific skills needed across the Retail workforce, even predicting future skills based on a person's existing capabilities.

Surprisingly, a recent study discovered that 47% of respondents believe AI would outperform humans in evaluating all job applicants consistently.

The beauty of AI lies in its ability to match individuals to open roles that might not have crossed your radar otherwise. And when this approach is effectively communicated to the candidates involved, it helps foster a more informed and inclusive hiring process.

Similarly, biases in the hiring process are also a major issue. Many recruiters believe that integrating AI in recruitment can help remove unintentional biases. By doing so, retail businesses can foster a hiring process that values skills and potential, ensuring fairness and equality in every recruitment decision.

Prioritizing to Fill the Most Difficult Positions –

In retail, some job positions can be really difficult to fill. Whether it's a shortage of specific skills, higher starting wages elsewhere, or the lack of remote work options for front-line store associates, the challenges are diverse.

However, AI can offer a unique solution to this problem.

With the help of AI, retailers can carefully scrutinize various roles to pinpoint the toughest ones to fill. The technology closely looks at the Talent CRM, examining the availability of candidates with the necessary skills and estimating the time required to fill these positions.

Such an analytical approach empowers retail recruiters to tackle the more demanding open positions quickly and focus on a speedy approach to finding the right talent.

Leveraging AI to Retain Talent

Nurturing talent doesn’t just end with hiring them. In fact, it’s only the beginning. Retaining top talent can pose a significant challenge, especially in the competitive retail industry. About 75% of participants in Beamery Survey believe it’s easier for employers to find a new job outside their organization.

Businesses must take a strategic approach to addressing this concern, and AI can act as a powerful ally in this process.

Personalizing Career Paths for Current Employees –

AI can revolutionize talent retention by creating personalized career paths for retail employees.

These paths can act as 'maps,' showcasing various career advancement options, marked by high turnover. It will not only inform employees of potential growth opportunities but also serves as a valuable tool to re-engage workers.

Smart Matching Employees for Internal Growth –

AI has the ability to analyse employee skills data and facilitate smart matching. By connecting internal talent with the right skills to fill open roles, AI can streamline the talent management process.

Such an approach not only considers skills and capabilities but also takes into account candidates' aspirations and preferences, ultimately aligning organizational needs with employee development.

Proactively Managing Talent with AI Insights –

Because many retail employees actively seek new opportunities, it’s essential to understand the workforce better.

When managing talent, businesses can leverage AI to get proactive insights, identify potential flight risks, and enable HR leaders to design more personalized retention strategies. These strategies aim to re-engage employees and foster a more resilient workforce.

Elevate Your Recruitment with TASC Outsourcing

Artificial Intelligence (AI) is reshaping recruitment and talent retention in retail.

As we embrace this transformation, the future of retail lies in smarter, more personalized decisions, navigating a path where technology meets human ingenuity.

TASC Outsourcing, with its profound 16+ years of experience in the MENA region, stands at the forefront of this evolution, merging local expertise with global perspectives to cater to businesses of all sizes.

Leveraging the latest AI tools and processes, TASC is not just another HR solutions company; it's your partner in navigating the complexities of talent acquisition. Our deep understanding of the market dynamics, combined with cutting-edge technology, enables us to connect you with top-tier talent efficiently and effectively.

Get in touch with our recruitment experts now for all your recruitment needs.