As brick-and-mortar retailers struggle to compete with Amazon and other e-commerce brands during America's ongoing "retail apocalypse," tens of thousands of workers face the challenge of finding new work as their jobs disappear.
A store closing and liquidation event is often very difficult for retail employees, who are tasked with managing high foot traffic, keeping track of discounted merchandise and organizing messy stores—so challenging that it’s not hard to understand why many look to quit before the store actually closes.
However, employees ditching a company during a liquidation event can be costly as the struggling business is now tasked with finding new workers and resources to help the rest of the liquidation go smoothly.
But that’s where CareerFlex comes in. The new Chicago startup has built a software-based program to help struggling retailers, restaurants and distribution centers keep an upbeat and consistent workforce as they close locations.
Founded in 2017 by brothers Dominick and Max Keefe, CareerFlex sells outplacement services to downsizing companies that provide incentives for their employees to remain at the company through the majority or all of a store or facility closure. So far, CareerFlex has helped retailers like Gymboree, Saks Fifth Avenue, Charming Charlie and Topshop through store closing events.
Incentives for employees include resume tips, interview advice, job boards and other information that can help with a job transition, Dominick Keefe said. And if employees do in fact stay through to the very end of a liquidation sale, CareerFlex gives them a personalized recommendation letter.
“There are store-level employees that are working very hard through these weeks to run this sale and at the end of it, they should be rewarded in some way beyond simply severance or whatever the retailer has allotted for them,” Keefe said. “Ultimately, we want to help them land on their feet for whatever that next chapter is.”
CareerFlex, which has offices in Northbrook and downtown Chicago, also helps growing companies, not just ones downsizing. Because the company is constantly monitoring store closures and has a database of people who may be looking for work, the company can provide a pipeline of new candidates to companies expanding their workforce.
To sign up employees to its platform, CareerFlex sends representatives directly to liquidating business locations to inform them of the benefits of using the service.
Regulations around corporate outplacement practices vary from state to state, but generally, companies do not have to provide outplacement services like CareerFlex to employees being laid off. Severance pay isn’t even required in most states under the Fair Labor Standards Act.
“Providing outplacement is a very healthy practice because it builds camaraderie and it builds a sense of mutual interest,” Keefe said. “Even though the employment relationship might not work out, [companies] are still invested in the overall success of the employee and wish them nothing but the best in the future.”
