In the fast paced world of retail, staff turnover is a challenge that many store owners face on a regular basis.
It’s not uncommon to see employees come and go, leaving behind a revolving door of faces at your store.
While some level of turnover is inevitable in any industry, the high turnover rates often experienced in retail can be costly and disruptive to your business.
But, why does your retail store have so much turnover?
Is it merely an unavoidable aspect of the industry or are there underlying issues that need to be addressed?
As a closing store sale management firm, we’re here to help you when it’s time to exit the rat race, so to speak.
But if you’re not there yet, we’re still happy to help.
By understanding the root causes and implementing effective solutions, you can create a more stable work environment for your store.
Let’s take a look.
You’re Offering Below Market Wages
Low wages significantly contribute to the persistent issue of high employee turnover in the world of retail.
In today’s competitive job market, offering a competitive wage is not just an option – it’s a necessity.
When your employees feel undervalued and underpaid, they are more likely to seek better opportunities elsewhere.
This creates an ongoing cycle of recruitment and departure.
The constant influx of new faces disrupts the cohesion and synergy of your team.
As a result, this can affect your overall customer service experience and impose additional financial burdens through recruitment and training expenses.
What To Do About It
Addressing this challenge head on by offering competitive wages is essential.
A more competitive wage not only attracts and retains talented employees, but also motivates your existing staff to perform at their best.
Employees who feel fairly compensated are more likely to remain committed to their roles.
Higher wages can also positively impact employee morale, job satisfaction, and overall workplace culture.
Those who are compensated fairly for their skills and contributions are more likely to invest in their professional growth and take pride in their work.
This heightened sense of engagement can lead to improved productivity, reduced absenteeism, and a greater sense of ownership in your store’s success.
Addressing the issue of low wages is not just about reducing turnover, but also about creating an environment where your employees feel valued.
This can, of course, only go so far.
If your employees are leaving for jobs in other sectors that tend to offer higher wages in general, it may be difficult to compete.
But if they’re leaving for other retail stores, the wages you offer may have something to do with it.
Now, life is getting more expensive, there’s no question about that.
You may feel like you can’t pay your staff any more.
But the truth is, you’re already paying more in the cost of staff turnover.
You’re paying:
- To advertise for vacant positions
- Your staff and managers’ time interviewing candidates
- To train new staff to the point where they’re proficient
- And more
On top of that, it takes a lot of your own time during this process.
If an increase in wages can reduce staff turnover by 50% or more, how much can you now invest in higher wages.
Investment in scheduling technology may help as well.
It’s tough to manage multiple part time staff with limited availability, it’s true.
But if you have staff scheduling software, it may be easier to have an extra handful of part timers that are looking for a couple shifts a week.
After all, part timers often have more than one job or responsibility.
They’re looking for good pay, but they often put more priority on flexible schedules to accommodate them.
If someone quits or calls in sick, you’ll have an extra pool of people that may want to pick up another shift here or there.
A scheduling system also makes it easier for your employees to request time off for vacations, appointments, or family events.
That can lead to higher job satisfaction across the board.
They Weren’t Properly Trained
Insufficient training is a major driving force behind the high turnover rate in retail environment.
It’s crucial to recognize that employees are the backbone of any successful retail operation.
When they aren’t properly trained, it’s almost certain that they’ll be set up for failure.
Not only does it hinder their performance, but it also leads to employee frustration and a lack of confidence in their abilities.
When employees don’t feel equipped to handle their responsibilities, it’s only natural for their job satisfaction to plummet.
What To Do About It
Proper training is not just a one time event but an ongoing process that equips your employees with the knowledge and skills needed to excel.
A well structured and comprehensive training program is essential in empowering your employees to navigate the complexities of their roles.
This may include handling customer interactions effectively or knowing how to properly manage inventory.
Robust training also fosters a sense of engagement among employees.
When they feel confident in their abilities and see that you, as their employer, is invested in their growth, they are more likely to take pride in their work.
Their Expectations Are Off
Another key reason behind the high turnover rate in retail stores is often the misalignment of employee expectations.
These expectations can be shaped by various factors, including previous experiences or conversations during the hiring process.
When employees join your team with certain assumptions about their roles, work environment, or advancement opportunities that don’t align with reality, it can lead to dissatisfaction.
For instance, an employee might have anticipated a more flexible work schedule but find themselves facing rigid hours.
Another employee might have been under the impression they’d be able to advance in their career, only to discover that it’s a slower paced journey.
Such disparities between what the employee anticipates and what they encounter can lead to frustration, disappointment, and the decision to seek other employment opportunities.
What To Do About It
Addressing this challenge requires proactive measures in managing employee expectations from the very beginning.
During the hiring process, it’s crucial to engage in open and transparent communication.
This not only involves discussing job responsibilities, but also providing a realistic picture of the work environment, growth prospects, and overall work culture.
Setting clear expectations early on allows people to make informed decisions about joining your team.
Also, maintaining ongoing communication with your employees is equally important.
Regular check ins, performance evaluations, and opportunities for feedback can ensure that their expectations remain aligned with the reality of their roles.
They’re Bored
A significant and often underestimated factor contributing to high turnover rates is employee boredom.
When employees find their tasks repetitive, unchallenging, or lacking in variety, they can become disengaged and disinterested in their work.
This can directly affect productivity and performance.
Bored employees can also have a detrimental impact on the overall work culture, as it can breed negativity and a lack of enthusiasm among your team.
What To Do About It
To combat this issue, it’s important to recognize that engaged employees are more likely to remain loyal and contribute positively to your store’s success.
Introducing variety into daily tasks, offering opportunities for skill development, and fostering a dynamic work environment are all strategies that can alleviate employee boredom.
Creating an open channel for employee feedback can also provide valuable insights into areas where boredom may be creeping in.
By actively listening to their concerns and suggestions, you can identify areas for improvement and make necessary adjustments.
They’re Just Not The Right Fit
Sometimes, employees are simply not the right fit for your retail store.
With a wide diversity of people in the workforce, not every person seamlessly meshes with every role, team, or work environment.
Mismatches can occur due to skills, attitudes, or values.
The consequences extend beyond just the affected employee.
It can ripple through your entire team and impact your store’s performance and workplace culture.
What To Do About It
A robust and thorough hiring process helps ensure that candidates align with your store’s values, culture, and expectations.
Assessing both the skills and cultural fit during the hiring phase can significantly reduce the likelihood of hiring people who are not the right fit for your store.
Also, encouraging employees to voice their concerns and challenges can help identify early warning signs of misalignment and provide opportunities for course correction.
They Found A Better Offer Elsewhere
In today’s job market, employees are constantly on the lookout for better positions.
When people come across job prospects that seem more closely aligned with their personal and professional aspirations, it’s only natural for them to consider making a move.
While this can be challenging for your store, it’s important to recognize that it’s a normal occurrence.
What To Do About It
Creating an enticing work environment is crucial in retaining employees.
When employees feel valued, engaged, and appreciated, they are less likely to actively seek alternative employment options.
To support long term retention, you must also focus on providing avenues for career growth and advancement.
Employees are more likely to stay committed to your store if they see a clear and attainable path for personal and professional development.
Contact Silverman Consulting And Retail Services Today
The issue of high turnover in your retail store is a complex challenge.
To counteract this, you need to continually invest in strategies that bolster employee satisfaction, retention, and loyalty.
Creating an appealing work environment, offering competitive wages, and providing opportunities for career growth are crucial components.
But sometimes, there isn’t anything left to do but to start looking at closing your business.
If that’s where you’re at, we’re here to help.
Contact Silverman Consulting And Retail Services today.
Silverman Consulting & Retail Services229 Yonge St suite 400,
Toronto, ON M5B 1N9, Canada
1 (888) 955-1069