Retailers have endured years of turmoil. In 2020, the pandemic resulted in the irrevocable closure of over 15,500 stores, which was followed by an exodus of frontline workers during the Great Resignation. A recent study discovered that 59% of retail frontline workers have contemplated resigning at least once in the past year, a 22% increase from the previous year. This presents a clear opportunity for HR leaders and retail businesses to promptly implement measures to retain and assist their employees.
In the first quarter of 2024, consumers spent $1.71 trillion on retail items, with e-commerce purchases accounting for only 15.6% of this total. Securing a robust frontline personnel is imperative, as U.S. consumers continue to depend on brick-and-mortar retail locations to make purchases.
At the same time, retailers should not rely on employment numbers to determine whether employees are satisfied with their work environment and benefits. Purchasing Power’s most recent research indicates that one-third of retail employees are considering alternative industries, despite the fact that 87% of them are content with their employment.
There are numerous factors that can contribute to potential attrition, such as on-the-job stressors such as negative consumer interactions or working additional hours. However, this workforce may seek higher pay or better benefits due to off-the-job factors such as the increasing cost of products, unanticipated expenses, or a health emergency.
In order to reduce the likelihood of losing talented associates and enhance consumer satisfaction, retailers must reassess their approach to addressing employees’ requirements.
The survey conducted by Purchasing Power identified numerous areas in which retailers can enhance the employee experience to enhance the customer experience:
A schedule that is more conducive to the needs of employees
In order to reduce employee turnover, retailers must confront the most challenging realities of frontline workers. Numerous employees are being requested to allocate additional time to their responsibilities as a result of labor shortages. However, the advantages do not always justify the additional effort.
The survey revealed that 40% of employees are required to manage numerous tasks concurrently, and 41% are required to work overtime hours without receiving additional compensation. Furthermore, 39% are required to complete additional tasks in a shorter amount of time.
Retail employees will shortly encounter increased consumer demand and additional responsibilities to support overall sales, including inventory organization and administration, as the holiday shopping season approaches.
Without the proper headcount available to keep stores viable during the active purchasing season, the possibility of operational inefficiencies increases, leading to overwhelmed employees and negative customer experiences. For instance, the likelihood of inventory issues increases as employees attempt to balance multiple duties, which may result in stockouts or missed sales.
In order to avert this, employers must implement a novel schedule management strategy. A majority of employees (54%) expressed a desire for more reasonable hours, while 49% expressed a desire for greater control over their schedules.
A benefits program that is designed to accommodate the current circumstances
According to the research conducted by Purchasing Power, the primary incentives for retail employees to remain in their industry are a higher salary (72%), more or better benefits (55%), and greater control over their schedule (49%). These results suggest that the workforce is clearly concerned about the personal and financial obstacles they may be encountering at home.
Employees are particularly interested in financial wellness benefits due to the potential for life-altering disruptions caused by unanticipated expenses, including medical bills, home appliances, and auto repairs. According to Purchasing Power’s research, 43% of respondents reported that their employer provides resources to enhance their credit scores, while 42% reported that they have access to yearly tax assistance tools through their employer. Nevertheless, 31% expressed a desire for financial counseling, while 29% desired financing for medical deductibles.
Furthermore, respondents indicated that they would appreciate assistance in overseeing the expenses associated with purchasing substantial items. Auto repair and maintenance were identified as the most prevalent unexpected expense by nearly 30% of respondents, while just under 20% expressed concern regarding significant appliance repair and replacement.
Benefits are considered equally significant to compensation by nearly 90% of retail employees. Offerings such as an employee purchase program can alleviate the effects of these substantial expenditures. Purchase programs enable employees to acquire items such as significant appliances, electronics, furniture, and car tires through a flexible and convenient payment plan that is deducted directly from their paycheck. Thirty-nine percent of respondents indicated that they would be more inclined to remain with their retailer if they were granted access to an employee purchase program.
All vessels are lifted by a rising tide.
Consumers are increasingly seeking personalized experiences and attention, which are exclusively available at brick-and-mortar locations. Consequently, retailers are poised for a promising future. Ultimately, this resurgence will be bolstered by the human touch. Retailers are required to establish an employee experience that guarantees the dedication and commitment of their employees to delivering a positive consumer experience.
Retailers can establish a foundation for an in-store experience that encourages consumer loyalty by addressing the fundamental concerns of their team members, such as financial constraints, medical requirements, and the absence of control over their schedules.