Employee turnover in retail stores across Canada hit its peak during the Covid-19 pandemic, with 58 percent of employees quitting or laid off. The average turnover for retail companies perpetually hovers around 60-65 percent. With the resignation putting much stress on store managers to retain their staff, it is vital to understand why the retail industry faces a more considerable turnover when the others average below 19%.
Retail employees often quit their jobs because they're tired of working long hours for low pay. With the job market improving this year, the frontline workers have finally had enough of the thankless grind. Many of them have found more comfortable jobs in which they are rewarded with higher wages and more generous benefits.
Here are the top 3 reasons why retail employees quit.
#1 Highly competitive job market
Most of the retail workers who quit during the pandemic said they were able to find a better job or an opportunity within weeks. Out of 22% of employees who resign during the pandemic,10% are finding new opportunities.
There's no silver bullet when it comes to solving your turnover and retention rates. Retailers losing their employees to their competitors should be aware that the need for better pay isn't the only factor that drives these resignations but the lack of work-life balance, people-centric work culture and competitive employee benefits.
#2 Hourly wages
Many would think the elephant in the room is the #1 reason employees leave, but actually, no. However, it is a huge consideration in why your employees are walking out the door. With employers like Amazon and Costco raising their wages well above the current standards, it's important to understand that competitive wages draw better workers. Below is a map by the Retail Council of Canada showing hourly wage rates across all provinces as of Jan 2022
#3 Feeling unappreciated
Here is a quick fact,
If an average employee works 8 hours/day, 5 days/week, they are spending about 30% of their life working.
If they spend all that time daily with an unappreciative boss, unmotivated coworkers, and monotonous tasks, can you expect to keep your employees for any amount of time?
Feeling valued starts at the top. You need engaged managers, to have engaged employees. An engaged manager that sincerely appreciates their employees acknowledges employee achievements and successes in front of all staff and on the spot, not in a drawling speech at the Christmas party. A good manager also knows the value of providing scheduling flexibility because their employees have lives, too. The impact a manager can have by knowing their employees as more than lines on a roster sheet and treating them as fellow human beings are immeasurable, like a good coach.
Draft better team players
There are many strategies that any company could introduce to reduce turnover. However, the most important aspect of building a great team that sticks together is to draft the right players. And that starts with having the right process to hire the best. Here are some questions you could ask yourself:
Are your job postings placed on the right websites?
Do you use behavioural assessments to discover the best-fit candidates?
Do your managers even have the time to do a second interview to get a better picture of who seems the best candidate?
Is it time to hire a better manager?
Mindfield offers the most comprehensive recruiting solutions available in the market backed by innovative technology to help you find, interview, and hire the best. Talk to our experts now to get started on the journey to building a great team that sticks together.