Retail Industry Employee Turnover Rate Trends (2013-23): ExitPro
Covering a spectrum of roles from sales associates to store managers, the Retail industry grapples with distinct labor shortages and changing workforce challenges to maintain a skilled and engaged workforce. Employing a massive number of entry level workers in every national economy, the convenience stores, supermarkets and discount retailers currently operate with fewer employees per store than ever before. An employee no call/no show could mean an unopened store.
Retail turnover trends are influenced by seasonal demand, evolving consumer preferences and the competitive pressure of online markets. Frontline workers are drawn to opportunities offering low barriers to entry, schedule flexibility, or alternative employment models, which also contributes to the industry's traditionally high turnover rates. Employee retention efforts at big box and superstores often revolve around competitive wages, enhanced benefits, and clear opportunities for career growth. But challenges often exit to foster a positive work environment given demands. Retailers that prioritize employee training, offer, and recognize and reward exceptional customer service tend to create conditions conducive to long-term commitment from their staff.
Technological advancements, including the integration of e-commerce platforms and data analytics, are transforming traditional retail practices. Department and Specialty stores that embrace digital innovation, provide training in technology adoption, and create a seamless omnichannel experience are more likely to attract and retain talent adaptable to evolving industry trends. Tactical retention programs become crucial as the industry navigates challenges such as the rise of e-commerce, demand for sustainable practices, and the need for a diverse and inclusive workforce. To achieve coveted 90 day employee retention rates, retailers adopt flexible scheduling, invest in employee wellness programs, accelerate benefits, shorten pay cycles, and prioritize salary bumps and retention bonuses.
As the Retail sector operates on thinner and thinner margins, reducing turnover remains vital to sustain operational efficiency. A key tactic is including exit interview software to automatically capture the changing needs of employees that quit. Forward-thinking talent management leaders can apply exit interview report insights to attract and motivate the staff that is more likely to stay. With meaningful HR metrics from separating staff, Retailers can increase long-term talent success in a competitive labor-intensive market.
