How to Reduce Employee Turnover Rate in the Retail Industry
The retail business is only as strong as its workforce. That is why it is essential for HR managers to monitor and reduce employee turnover rate in retail establishments closely. Experts advise employees to change jobs after working for some years at a company. This helps them gather the experience which is needed to advance their careers. However, it becomes a problem when too many employees decide to resign from a retail business at the same time. Who will do all that work?
HR managers are responsible for managing the work teams to prevent massive employee turnover.
What is Employee Turnover?
This is best described as a situation when the retail employees at your firm leave the company for any reason. In some cases, a high rate of employee turnover in retain is due to resignations. At the same time, in other situations, you may have found valid reasons to ask the employees to leave the company. In both situations, it is not a very good event for the company, so it is best to find long-term solutions to reduce employee turnover rate in retail establishments.
Job Processes in Retail Businesses
The majority of the job roles in retail businesses involve monotonous activities that the employees do every day. These activities may seem boring, but they collectively contribute to the business's success. That is why big and small companies in the retail sector value the role of their staff.
The jobs involve simple and complex tasks and, most importantly, direct interaction with the customers. Therefore, the retail employees are a crucial source of feedback that you and your HR team can leverage to help the company meet its recruitment and team-building goals.
However, in some instances, it may seem like a daunting task to reduce employee churn in retail establishments because of several reasons which may also be directly associated with the business and its industry.
Considering the volume of work that retail employees complete every day, we can say they are the driving force that pushes businesses to succeed. Also, these employees have begun to realize their value and the need for career advancement. Also, many of these employees may be in the retail sector as a passing phase to other career options. While we can write a long list of reasons why employee turnover often happens in the retail industry, there is good news. There are so many practical ways you can reduce employee turnover in retail.
Continue reading to know what you can do to lower employee attrition rate in retail.
Types of Employee Turnover
You may find different arguments when discussing the different types of employee turnover that could happen in the retail sector. This argument arises because we have not fully witnessed all the reasons why retail staff may suddenly decide to leave their jobs one at a time or en masse. However, there are four popular types of this event that many HR managers witness while doing their jobs.
The following are the best depiction of employee turnover situations in the retail industry:
- Voluntary Employee Turnover
There are times when some of your retail employees may decide to resign from their jobs even when they did not have any issues in the workplace. This is termed voluntary employee turnover. It happens for many reasons. However, the company cannot stop the employee from leaving if they have made up their minds to resign.
If you are experiencing this type of situation too often, it will be a great idea to find out why. This is an excellent way to reduce employee turnover rate in retail businesses. You can convince the management team to make it mandatory for every retail employee or others in different departments to declare their reasons for leaving the company. This information will help you understand the situation better. You can also detect the possible cause of massive employee churn in the company. However, in reality, many companies simply ask the employees to volunteer information explaining why they decided to resign from their jobs. It is not mandatory. Still, the company somewhat appeals to the individual to provide that information.
- Involuntary Employee Turnover
In this situation, you will be faced with making a decision to ask the retail employee to leave their jobs. This can happen for several reasons. However, generally, the employee was not planning to leave the company when they were fired.
As an HR manager, you have more work to do to reduce employee churn rate when it becomes apparent that a significant part of your workforce has been fired from their jobs. This is the time to review your recruitment methods to find the best candidates for the position. At this time, you will be looking for candidates with the specific features that make them the most suitable for the job.
- Strategic Employee Turnover
In this situation, you have a task as the HR manager to overhaul the retail staff completely, hiring new and better professionals who can do the job. This happens when you realize that the current team consistently delivers poor results.
After you may have exhausted all options to help them improve, you may have to let them go and find a better replacement. In this situation, you can avoid adverse effects on the business by taking quick steps to reduce employee turnover rate in retail by avoiding compromise when selecting the next team to occupy retail staff positions at the company.
- Switching Jobs
This is a situation you should try to avert as the HR manager in your company. It happens when the best high-performing retail employees decide to leave the company. These are the employees that most likely encourage a better working attitude in the company and support their teammates to do their jobs perfectly. They are employees any business would like to have on their team. Therefore, losing these high-performers can have a negative impact on the company.
You may find it quite challenging to handle this problem as the HR manager. That is so because replacing the best employees when they leave is not an easy task.
Why Employee Turnover Happens in Retail
There are so many reasons why an employee may decide to leave their jobs. However, it always means you have to act quickly to replace the ones who have gone with better employees who can do a good job. Most retail teams work to achieve common goals. Therefore, it becomes a problem when one or two of them leave the team. It gets worse if employee turnover happens unexpectedly.
To help you understand why employee turnover happens, here are some of the reasons why retail staff quit-
- The Search for Higher Pay
The retail industry is competitive. Many companies with vast financial resources can afford to pay their retail staff more money. Therefore, your retail staff may be earnestly waiting for an opening at that company. And when it happens, they leave their jobs immediately to work for higher pay.
If you notice that your best retail staff are leaving the company for other positions because they want to get more pay, you should consider convincing the management team to review the pay grade to reduce employee churn rate in retail.
- Health Problems
It is possible that you are experiencing employee turnover because many of the workers are falling ill too frequently. They will need to leave the job to seek better solutions to get better without the distraction of having to resume at a job daily.
Resigning because of a health problem may be the reason given by one or two employees who have decided to leave the company. However, if you observe that many more are leaving because they do not feel healthy, you should investigate. It is possible that something about the job may be triggering the health condition they are suffering. If you can identify the problem, take quick steps to ensure your team addresses it.
- Better Employee Benefits
Most retail jobs attract several benefits. However, These offers differ from one company to another. That means one or more of your retail team members may be tempted to accept a job offer from another company to enjoy more benefits.
This is another relatively easy issue to handle. You can convince the executives to review the benefit structure for the retail staff to make them happy.
Coincidentally, employees may decide to relocate to another city or country at the same time. This could cause a problem for the company even though the employees are only trying to make their lives better. Relocation may be due to marriage, education, or if the living costs in that city become too high. Generally, there is little you can do about such issues to reduce employee churn in retail. The best reaction to this situation is to activate a recruitment drive to find other candidates who can quickly fill the vacant positions in the company's retail department.
- Job Flexibility
It is also possible that the employees who decide to leave are seeking new working experiences that allow them to have more flexibility. They may desire to have a more active social life or start a family. Also, it is possible that the employees may be seeking opportunities that allow them to have two or more jobs.
In such situations, your ability to find better replacements can help the situation improve. Teams with members whose roles complement each other cannot perform maximally if one member quits.
- Toxic Workplace
Exceptionally few employees will be happy to continue working in a toxic workplace. Instead, they will find the next opportunity to leave the company. The bad working conditions may be due to a nasty boss or colleagues who make the job experience unbearable for others.
Before losing the best employees who help the business grow, you should take steps to stop the toxic experiences in the workplace. You may have to fire the person who causes such problems.
However, there is a way to avoid this situation from the start. All you have to do is establish a workplace culture that strongly discourages toxic behavior in the workplace. You should also ensure every employee understands those rules and know that anyone who exhibits toxic behavior could lose their job.
- Career Growth
Many people switch jobs in the retail sector to experience career growth. This is one of the lead causes of employee attrition in the retail space. Switching jobs could expose the individual to new working methods allowing them to gain more experience. They can leverage their expertise to find better-paying jobs in the future. Since this situation cannot be stopped entirely, it is best for you to make adequate plans to fill vacant positions in the company as soon as someone leaves.
Effects of High Employee Turnover in Retail Businesses
When too many retail staff leave the company, things cannot remain as they are. The company is likely to experience many negative effects. That is why you must be proficient in the methods that can effectively reduce employee attrition rate in retail.
Here are some of the main effects of employee turnover as it affects the retail business:
- Bad PR
Anyone out there that hears your company is experiencing prolonged employee turnover will immediately assume that the company is a bad place to work. This public perception can affect the company's image and ruin the business if you do not adequately handle the situation. Bad PR will also make it difficult for you to attract the best candidates to fill the vacant positions in the company. People with the needed qualifications to work in retail look for good companies that offer them an opportunity to expand their careers and gain experience. If they do not believe your company can offer such an opportunity, you will receive rejections if you send them an employment offer.
- Unnecessary Expenses
Recruitment processes are expensive. You may need to exhaust a huge budget trying to find the best employees out there to replace those who have left the company. These expenses could affect the company's financial resources, making it more challenging to remain competitive in the industry.
- Risk of Information Leaks
When too many employees leave your retail company, there is a high chance of a leak. The employees could reveal the company's business and trade secrets to the competition who accepts them. This situation could have a negative effect on the company, making it increasingly difficult to compete with others in the retail sector. Information leak is one of the main reasons you should do your best to reduce the employee churn rate in retail businesses. The people who have left are most likely not under any obligation to keep the company's trade secrets. Even if you bind them with legal terms, they may still reveal information, and the damage would have already happened even though you try to prosecute them.
- Lack of Motivation Among the Retail Staff
The few employees left behind after many have left will feel reluctant to do their jobs as they should. The lack of motivation can linger for a long time and cause the company a lot of resources. Restoring their faith in the company and brand may require huge expenses and sacrifices. However, it is possible to know what to do to reduce employee churn in retail businesses. The solution is to continue using methods that have been working to keep the employees happy at their jobs. You should also make quick moves to employ competent people who can bring back the glory and workplace excitement that has helped the company grow all through the years. However, please note that there is no specific approach to restore the staff's confidence. You are free to think outside the box and try several strategies.
- Low Productivity
When many people leave the retail team, they will encounter challenges to meet their goals. Consequently, you may record low productivity for that week or month. This is hardly the employees' fault because achieving excellence in the retail sector involves a whole team. The risk of experiencing low productivity is one of the main reasons you would do everything possible to reduce employee attrition rate in retail workspaces.
How HR Managers Can Reduce Employee Churn Rate in Retail Businesses
There is no specific way to reduce employee turnover rate in retail businesses because many circumstances can cause the situation. That said, you will have to study the situation to find a lasting solution carefully. Also, there is good news.
If you work as an HR manager in a retail company long enough, you may develop a unique and excellent solution to the problem. We know that there is always a solution, so if you are currently experiencing employee attrition in your company, stay calm and focus on finding the answer.
Good companies are interested in enhancing their workforce.
The two top responsibilities of an HR manager are attracting the best employees to come work in the company's retail sector. The next task is learning the best strategies to retain the same set of employees who have been performing excellently at the workplace. They do that by paying attention to the retail staff's needs and introducing policies to make the workplace better for everyone.
Also, intelligent HR managers understand that they need to prevent or reduce employee attrition rate in retail businesses to keep their jobs. These events cause the company to lose a lot of money. They need to spend more to recruit better employees. Therefore, executives that realize the HR manager cannot help retain the best candidates will have to let them go. Alternatively, the HR manager may be compelled to retire before they planned due to frustrations from their jobs.
Strategizing to Reduce Employee Turnover in Retail Businesses
We have broken down the best strategy to reduce employee churn in retail into three stages. The plan includes setting targets and implementing processes to lower employee turnover monthly, quarterly, and annually.
These are short-term goals you can set as the HR manager to reduce employee churn rate in retail businesses.
The monthly goals will help you closely monitor the trends and all that is happening in the workforce. That means you can quickly notice problems and take steps to make quick corrections before the situation becomes a full-blown employee turnover. Here are the monthly goals you can set:
- Eliminate Signs of Toxicity in the Workplace
You should create a system that allows you and the other HR team members to curb toxic behavior in the workplace. You can do this by acting quickly when you or your team receive complaints. Also, create an opportunity for employees to discreetly report colleagues with toxic character.
- Acknowledge Excellent Achievements
You should also frequently recognize employees who perform excellently in the workplace. This should be a monthly exercise to ensure they know the top management is aware of their excellent work.
- Allow Retail Staff to Work Independently
Employees who feel confident in their ability to perform their jobs excellently when you give them some space. This allows employees to be creative and try different things. Most times, they perform better at work and feel happy to stay with the company. On the other hand, if you monitor employees too closely, they may begin to feel uncomfortable, and the next thing that comes to mind is getting a new job in the retail industry.
- Perform Individual Assessments
You can reduce employee turnover in retail by studying the workforce to identify the strong and weak links. With this information, you will have a better understanding of how each member of the retail team functions. Then, you can make plans to help those who need support to improve performance. Also, you will identify those who work well under specific situations and then create those circumstances to help them maintain the excellent work they do. You should do these observations as often as you can, then complete an assessment and make decisions monthly.
At the end of every quarter, there are some areas you should explore to help your retail staff comfortable at their jobs, making them stay with the company. The goal is to reduce employee churn rate in retail by using the most effective methods.
Here are some of the quarterly strategies you should consider using to reduce employee attrition rate in retail businesses:
- Help Employees Avoid Burnout
Employees may experience burnout after grinding at their jobs for weeks and months. Therefore, this makes an ideal quarterly assessment to reduce employee turnover in retail businesses. You should make plans to assess their performance ratings to identify who needs a break. You can encourage retail staff to consider seriously achieving a work/life balance. Having a work/life balance is one of the best ways to avoid burnout. This is a good move because employees who experience severe burnout start thinking about resigning to allow them to have more time to take care of their health.
- Organize Fun Activities for Retail Staff
It shouldn't be about work and more work all the time. As the HR manager, you can organize fun activities that take the team outdoors. These fun events also boost team connections, so they work better together. You should make plans for such fun events quarterly. This way, it becomes an event that everyone anticipates. Such bonding and relaxing events help them realize they are part of a family that cares for them, subsequently helping to reduce employee attrition rate in the retail space.
- Training Sessions for Employees
These quarterly training sessions help your retail staff learn the new methods in the industry and how to apply those skills to increase productivity. Overall, it boosts confidence and allows your staff to become more productive and enjoy higher job satisfaction.
Your annual goals are long-term plans supported by monthly and quarterly achievements. Your overall goal is to retain the best employees in the company for many years. Therefore, your annual goals to reduce employee churn rate in retail should be focused on helping them achieve self-development and career advancement in the company.
- Annual Appraisals and Promotion
You should organize unbiased performance reviews to identify eligible employees for a well-deserved promotion. Rewarding retail staff with promotions is an excellent way to acknowledge their hard work. Also, people who have just received a promotion at work are unlikely to think about leaving the company.
- Reviewing the Company’s Work Culture
It helps to review the aspects of the company's business that may be making retail staff feel like leaving the company. Your monthly and quarterly assessments should have revealed some aspects that employees find uncomfortable. An annual review should introduce slight adjustments to address the concerns observed among the employees.
Every aspect of the job, remuneration process, work ethics, policy implementation, and onboarding should be transparent. This way, it is more effective to communicate to your team that you have their best interests in focus by introducing more staff-friendly initiatives annually. In a transparent system, you can ensure that every team member trusts the system that treats them like family.
The collective processes to reduce employee turnover rate in retail space may seem like a whole lot of work for HR managers. However, you can do it all seamlessly by creating an excellent plan. Also, closely monitor your strategies to identify methods that give the results you want. Then, focus on those methods to control and reduce employee turnover in retail establishments.