It’s no secret that employee turnover rate for retailers isn’t that great. A 2012 survey from Hay Group indicated that employee turnover rates were steadily rising. Retailers reported a median turnover rate of 67% for part-time store workers, a 33% increase over 2011.
Although the gradual economic recovery over the past year led to a boost in employee hiring, especially during the 2013 holiday season, many employees still are dissatisfied with several factors of their place of employment, including: salary, training and overall environment.
But will President Barack Obama’s goal to raise the federal minimum wage to $10.10 an hour help address volatile employee turnover rates?
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An article published a few days ago by the Wall Street Journal reported that while the move would eliminate up to 500,000 by 2016, it would lift nearly a million people out of poverty.
Retail and fast-food chain employees most likely account for a fair percentage of minimum wage employees, which draws the conclusion that an increase in hourly pay would ultimately improve their perceptions of employers.
Think of the many retailers that have been acknowledged for the benefits they provide to employees. Apple, Costco and the Container Store are among the companies that have been titled the “best retailers to work for."
Criteria for the winners included: competitive salaries, employee reviews, company pride, organization value and culture, socialization opportunities and career advancement opportunities.
Isn’t it time we get more retailers at the forefront of employee recognition and empowerment?
A variety of Retail TouchPoints articles have indicated that consumers, overall, are disappointed with associate knowledge. Similarly, 47% of store associates have said they are unfamiliar with the products they’re selling.
At the end of the day, salary definitely isn’t the only issue when it comes to store associate turnover. However, it does play a large part, and could be a great way for retailers to kick off their new employee initiatives.
How do you think the minimum wage increase will impact employee retention and loyalty?
