A recent study found that the turnover rate for part-time retail employees is 67% and that it costs companies over $3,000 to find, hire, and train replacement employees. Companies are investing in refining their hiring practices, but are not researching why their turnover is high. According to The Retail Doctor, there are eight reasons why retail employee turnover is high.
- Incentives are only given to management. In order to reduce turnover, retailers need to find a way to include everyone so that all employees can feel good about their job.
- Retailers have antiquated policies like no refunds, no exchanges, and all employees have to work long hours and on weekends. It is time to refine these policies to be better for employees and customers.
- Retailers offer minimum training. Even employees with previous experience might not understand a new company’s procedures. It is important that retailers set expectations for employees.
- Retailers often throw employees into the job. Many employees don’t know how to pro-actively get to know other employees. It is important for retailers to provide opportunities to bring people together.
- Retailers encourage employees to do and not think. Giving employees menial tasks constantly gives them ample time to lament how much they don’t like their jobs.
- Retailers make every day the same. Retailers should mix it up for employees especially those who have been them for a while.
- Retailers often hire the wrong people. It is important to see if a job candidate can actually talk to people.
- Retailers often promote task-oriented employees to supervisors. Managers can’t be rewarded just for getting a task done, but rather for their ability to motivate and lead a team.
Discussion Questions:
1. What steps do you think are essential to reducing employee turnover at store level?
2. Would you add any steps to those mentioned in the article?
Source: Bob Phibbs (The Retail Doctor), Retail Wire, February 25, 2014