Retail Employees: Four things they need in 2024 from their employers
Understanding the issues facing employees will make all the difference for employers as they work to support their people through 2024 and beyond. Each industry has its unique workforce challenges and there are lessons to be learned for all of us from how employers in different industries address the sources of employee dissatisfaction. That is certainly true of the retail industry.
According to our Inside Employees’ Minds© survey of 4,505 US employees in organizations with 250 or more employees, engagement improved significantly from 2022 to 2023. Retail workers are feeling a better sense of balance, belonging and satisfaction when it comes to compensation, benefits and career opportunities – indicating that their employers have been listening. But despite clear gains, there are still several issues still weighing on employees’ minds. To address the biggest issues their employees face, here are four areas retail employers should prioritize in 2024:
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Provide flexible work optionsTo put it bluntly, retail workers are stressed out. Roughly 40% of retail employees say their workplace is chaotic and makes them feel overwhelmed. The survey results are clear about what would most help to alleviate their stress: more flexibility. Only 38% of retail workers say they can easily take time off for necessary everyday life events, and fewer than half have the flexibility to choose when their workday begins. Retail employers should consider letting employees choose their shifts, rearrange their hours for a compressed work week or simply take time off for everyday life events, such as doctors’ appointments. Offering this type of flexibility can differentiate retail employers from each other – leading to higher quality candidates and, ultimately, more committed and engaged employees.
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Focus on employee well-beingWorkload and life balance are key issues for retail employees. Half of employees say they are exhausted during a typical day at work, and it’s not hard to understand why. The pandemic was especially taxing for retail employees who, as frontline workers, didn’t have the option of remote work. Inadequate staffing and high levels of negative interactions with customers took a toll on mental health, and the period of high inflation that followed hit these lower-wage workers especially hard. Retailers should consider ways to provide employees with what they most want: more competitive wages, paid time off according to their needs, reduced workloads and the necessary resources to do their jobs safely.
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Transparency in pay - and skillsNearly 60% of employees said they’ve researched pay ranges through their employer’s job postings – and that rises to 70% for workers under age 45. Almost half of employees say they would be unlikely to apply for a position if compensation details weren’t provided, and certain states, like California and New York, require it. Transparent pay ranges have benefits for employers as well – employees who have access to these details report significantly higher levels of engagement and commitment to their work. Retail employees are also looking for transparency around the skills required by their employers. Only 56% of front-line store employees feel their career goals can be met at their company, and only 44% feel they are compensated for attaining new skills. Retailers must clearly communicate the growth opportunities within their organizations to help retain talent, and they must ensure employees see a correlation between growth in skills and compensation.
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Employers dedicated to transformationTransformation cannot be defined by isolated changes and top-down decisions. For many employers, geopolitical and economic issues, sustained inflation and the rise of new technologies will result in significant organizational change, and it is critical to engage employees in the process. While the retail industry has made strides in wage increases, total rewards, payment transparency and well-being initiatives, employees are eager to share their ideas and help redesign work and jobs. Only 48% of employees believe that new technologies, such as AI and robotics, will help them do their job more efficiently. Employers hoping to shift from a traditional service-oriented workforce to a more skills-enabled one will need to clearly communicate expectations, training opportunities and position requirements so that employees feel empowered to advance. By involving employees in the ongoing transformation of the workplace, retail employers can create more stable, lasting teams that can better weather changing work environments.
Whether or not you’re a retail employer, your employees’ workplace satisfaction will be reflected in their dedication and performance at work. We’ve seen retailers make inroads with their employees, but there is still plenty of work to be done. Organizations need to be innovative in how they build upon their successes if they want to become top employers – and they can only do this if they listen to what their employees need. Retailers -- and all employers-- need to ask two crucial questions in setting benefit strategies for 2024 and beyond: Are you listening to your employees when they tell you how they feel, and are you taking steps that will address unmet employee needs?
If you’d like to learn more about our findings in the retail sector, click here.
Senior Principal Consultant for Mercer
Principal