Retail is facing multiple challenges. Focus has shifted from product to customer experience, emerging markets have created uncharted forms of competition, and ecommerce has created a need for new positions, skills, and departments. All of these shifts leave employee satisfaction hanging in the balance. As a result, the industry is experiencing lackluster employee engagement levels and retailers are facing record-high turnover rates.
According to the Bureau of Labor Statistics, over 15 million people work in the retail sector. Retail sales occupations make up the second largest job growth projections in the country, according to The Guardian. Meanwhile, the Bureau also reports that retail is among the top five industries with the highest turnover rate. In fact, a Hay Group survey found that retailers averaged 67% turnover for part-time employees and 26% retailers said turnover costs have increased.
Turnover
Retail sales occupations make up the second largest job growth projections in the country, according to The Guardian. Meanwhile, the Bureau also reports that retail is among the top five industries with the highest turnover rate. In fact, a Hay Group survey found that retailers averaged 67% turnover for part-time employees and 26% of retailers said turnover costs have increased.
Disengaged Employees & Turnover
A Mercer study found that turnover affects every cog in the retail machine-especially call center representatives. The study showed that that 6.2% call center reps left within the first 30 days; 5% left between 21-60 days on the job; 5.6% quit within 61-90 days; and another 8.2% left within three to six months, Despite the sector's alarming turnover rate, retail growth is anything but stunted. Online shopping and warehousing operations created 355,000 jobs from 2007 to 2016, according to Michael Mandel, Ph.D., chief economic strategist at the Progressive Policy Institute in Washington. D.C. By comparison, he found, the general retail sector lost 51,000 jobs during that time, indicating a need for new skills.
