Enduring high turnover rates in retail is no new news for companies in this industry. Despite retail being one of the most important industries in the global economy, it continues to face workforce instability, creating a ripple effect of challenges companies must face to keep employee turnover in check.
Understanding why employee turnover rates are usually high and what strategies can be implemented to reduce them is crucial for sustained success among retail companies. Examining the roots of this turnover, related statistics, and targeted tactics for reducing turnover will be the main steps in controlling it.
The Roots of High Turnover In Retail
Working on a part-time salary is not sustainable for certain adults in different life stages. For example, working a part-time job may be sustainable for a young adult aged 16 to 24 who is still balancing attending college classes. However, a 30 to 40-year-old adult with accumulated debt and more bills to pay than a young adult would have trouble living on a part-time retail salary.
Here are the main roots of why turnover is so high in retail.
Nature of Retail Work
While retail schedules could be flexible for some workers, others need a more defined schedule for their lifestyle. The sporadic scheduling combined with the physically taxing work of maintaining a retail position is overbearing for certain employees which leads to burnout and causes them to seek work opportunities elsewhere.
Seasonal Workforce Dynamics
Retail relies heavily on seasonal hiring, especially around the holidays at the end of the year. Many seasonal associates do not transfer to permanent roles, which continually contributes to high turnover rates at the start of the new year after seasonal demand ends.
Money announced in 2021 that out of all the 561,000 seasonal roles across Macy’s, Walmart, and Amazon, 37% of them were considered permanent positions. While some retail companies may allow seasonal workers to stay on as permanent associates, not every business may prioritize this important factor for maintaining increased employee retention.
Limited Career Progression
Many employees already have a negative perception that working in retail will not yield them successful career development opportunities, leading to retail labor shortages. Unfortunately, entry-level employees could stay in the same position for many years without the promise of an internal promotion.
Retail Workforce Challenges
High turnover rates in retail usually stem from their entry-level, seasonal, or part-time status. With lower opportunities for full-time roles with benefits in the retail industry, this ultimately reduces the chances of employee loyalty.
Statistics About Retail Turnover
Unveiling statistics about high turnover rates in retail can help companies understand the need for enhanced hiring procedures for better candidate quality.
TeamStage reports that retail has the highest turnover of 60.5% among other industries. This stark statistic underscores the importance of retail companies addressing turnover with strategic measures.
ZipRecruiter reports that the average hourly rate is $13.85 for retail workers as of December 2024. Offering competitive wages and prioritizing other avenues for attracting top talent is crucial for keeping a strong, loyal workforce.
Hence, implementing a retail recruitment solution can help to enhance candidate quality and reduce the chances of onboarding a bad hire. Utilizing AI-driven keyword searches to find quality candidates based on specific phrases contained in their applications and resumes can separate the wheat from the chaff in applicant quality.
How To Reduce Retail Turnover
Workforce stability in retail can be enhanced by implementing specific strategies to keep turnover low and retention high.
Offer Competitive Pay and Benefits
Offering fair wages, health benefits, and performance incentives can enhance the retail workplace experience for incoming and veteran employees. This also makes retail work more appealing and reduces attrition’s overall impact.
Invest In Employee Training and Development
Employee training and development is essential for refining career development for retail workers in all positions, but especially entry-level individuals just starting in the industry. Training and development help enhance foundational skills and industry knowledge to grant retail professionals the confidence to handle the complexities of working in retail.
Foster A Positive Workplace Culture
A positive workplace culture always keeps turnover low. As retail professionals collaborate in making daily decisions and assisting customers, they can build trust with each other and foster a sense of camaraderie that enhances team dynamics.
Flexible Scheduling
Retail workers desire a work-life balance. This is sometimes difficult to achieve with the sporadic hours assigned to them. However, retail companies prioritizing working with employees and their availability makes them feel they have a bit of command of their schedule to still fulfill their responsibilities and desired personal endeavors.
