Retail worker shortage: How to meet customer expectations with fewer workers

After three years of shopping predominantly online, Americans are ready for a change when it comes to retail. Millions are flocking back to brick-and-mortar stores looking for immersive consumer experiences and enjoying the flexibility of the BOPIS (buy online, pickup in-store) sales model.

But while consumers are coming back to stores, retail workers are leaving in droves. The current retail quit rate is nearly twice the rate of other industries while unemployment in the retail sector is 40% higher than the national unemployment rate. Unsurprisingly, a retail worker shortage is emerging, forcing retailers to rethink how to attract new employees and retain current staff.

What are customers looking for now?

New research reveals that 80% of consumers say that their shopping experience is just as important as the products they buy. And after being forced to shop online during the pandemic, American consumers are looking for personalized experiences to interact with products and bring back social elements to shopping.  Effective customer experiences include interactive displays, live events, different modes of checking out, and changing the design of brick-and-mortar stores to be more immersive.

Additionally, the popularity of BOPIS shopping isn’t going away anytime soon. In fact, it’s only picking up speed: In-store pickup increased by over 554% in 2020 and economic experts predict this growth will continue until 2024 when BOPIS sales will top $140 billion in the US alone.

Both of these consumer trends rely on retailers having a strong workforce in-store. But as retailers country-wide are operating at an estimated 20% below capacity, this retail shortage will undoubtedly impact a store’s ability to meet customer expectations.

Why is there a retail shortage?

Retail was one of the industries hit hardest by the pandemic and the sector has yet to rebound. Thousands of companies were forced to lay-off their employees in 2020 and since then, millions have chosen not to return. This is due to a variety of reasons, including high unemployment benefits offered during the pandemic (some which are still in place today), older workers choosing to retire early, and people changing careers during brick-and-mortar store closures in lockdown.

The needs and wants of workers have also changed thanks to the pandemic. Flexibility is now the number one driver of employee attrition with eligible workers choosing remote work and flexible scheduling over traditional work schedules. Unfortunately, most retail positions cannot be done remotely leading to many quitting to find more flexible work. 

How can you address retail workers quitting?

You’ll need to rethink your employment model to retain your retail workers while meeting customer expectations. Numerous case studies have emerged since 2020 showing that retailers who rotated their workers’ location have seen success in preserving their existing workforce. One retailer amazingly retained 90% of their employees by closing 50 stores and transferring those workers to 200 nearby locations. These 600 workers kept their jobs and didn’t need any training, allowing them to start working in their new location on day one.

Furthermore, you’ll need to rethink your worker population and their specific needs. Retail workers range from high schoolers to parents waiting to retire, and different benefits attract these different age groups. Teenagers are more likely to accept a job that offers sign-on bonuses and shop discounts while retirement-age workers prefer more healthcare benefits and cash bonuses.

What can you offer your retail workers?

While offering higher salaries is often the first place a company turns to in order to find employees this is not the solution to the retail worker shortage. Multiple retailers have confirmed that raising wages above the minimum wage or even to $15 per hour is not enough to attract workers to retail positions.

Instead, you’ll need to ask your workers what they need and reflect their answers in your offerings. For example, Carter’s, a children’s clothing retailer, held several sessions with their workers to hear the problems they face. The need for more family support came out of these sessions, resulting in the company re-examining family leave policies, childcare benefits, and flexible scheduling. Electronics behemoth BestBuy has also begun to offer more family support in lieu of higher salaries in the forms of offering back-up childcare through Care.com and $100 monthly reimbursements for tutors of their employees’ children.

Laying out distinct career paths is also vital to retaining your retail workers. All too often retail jobs are thought of as just a “summer job” or a job one takes when they’re in a pinch and need some extra cash. By changing the conversation around retail work and showing your employees the different career paths they can take to become store managers, brand associates, merchandisers, or working in e-commerce, they’ll be more likely to pursue a life-long career in retail and stay with your company in the long run. ­­­­­­­­­

Is your company struggling to fill open positions during this retail worker shortage? Adecco can help. We’ll connect you with the right pre-qualified talent ready to work in a variety of retail positions, allowing you to shift focus to retaining your current workforce. Contact us today to get started.