Hiring has always been a huge challenge for retailers given the mix of full-time, part-time and seasonal workforces that come into play.
The proposed tariffs by President Donald Trump aren't making the hiring strategy any easier, according to a Forbes report, which reveals tariffs are bringing a whole new level of pressure and prompting retailers to reorganize teams, tighten budgets and consider more tech solutions.
To keep up with the tariff decisions check out this timeline.
Roles with lower wages tend to have a more difficult time retaining workers, and the leisure and hospitality industry has experienced the highest quit rates of all industries, according to the U.S. Chamber of Commerce.
Clothing and accessories retailers in the U.S. are implementing hiring freezes due to tariffs on items imported from Vietnam and China, according to a Reuters report.
To gain greater insight on retail hiring in the current environment and how to retain top talent, Retail Customer Experience reached out to Dr. Laurie Cure, an organizational development expert and CEO of Innovative Connections. Her 30-plus years of expertise includes change management and culture evolution. Cure is the author of "Leading without Fear," which addresses workplace fear, and has contributed to numerous publications on leadership, coaching, team development and emotions. Cure has also served as a Meta-coach for the Daniel Goleman Emotional Intelligence program and as faculty at various universities.
Q. How would you describe the current retail employee environment? Are they being taken care of, are they engaged or not engaged in their retail role?
Cure: The current retail environment is quite demanding. While there are pockets of positive trends, many retail employees describe themselves as feeling undervalued and underpaid. Trying to live on minimum wage and lower salaries has become even more challenging in these economic times, and even the best work environments struggle to maintain engagement. Recent data shows retail workers have some of the lowest engagement levels across industries, and the turnover rate often exceeds 60% or more. One doesn't have to look far to see signs in retail establishments demanding that customers be courteous and respectful, often saying, 'We have zero tolerance for abuse towards our team,' or 'Aggressive behavior will not be tolerated.' Even companies and leaders seeking to support their team members cannot entirely shield them from poor customer behavior.
Q. Are retail employees getting the attention they deserve and need to succeed?
Cure: Emotional burnout, poor and inflexible scheduling, and the need to hold multiple jobs to make ends meet are common experiences of retail workers. Many companies have been criticized for keeping hours just below the level where they are required to pay benefits, so employees have to piece together jobs, which adds to the complexity of scheduling and overwork. Balancing work and life becomes even more difficult in these circumstances.
Basic positive recognition is also lacking in retail environments. Training can be more limited with high turnover, and support is virtually nonexistent. In comparison, companies like Costco and Trader Joe's are known for having some of the best practices in their industry, which create healthier work environments. Offering more competitive wages (above minimum) and benefits packages is a great start. These companies also look at internal promotion and growth and provide solid feedback during performance reviews so employees can gain experience and improve. Scheduling is often more stable, and employees are sometimes encouraged to self-schedule.
Creating positive cultures goes a long way, but meeting employees' basic needs is critical.
Q. When it comes to layoffs, you believe the highest achieving employees are typically the first to go why is that?
Cure: I find that in most industries, including retail, employers are always at risk of losing their best employees. First, your best employees will be the ones most likely to be hired by other companies because they are reliable, efficient, personable and self-starters. They often seek promotional and advancement opportunities, and if these are not readily available, they will seek them elsewhere. They are also the most likely to feel burned out from taking on more responsibility in the role. Lower-performing employees may be more complacent and have fewer opportunities available to them, leaving them more likely to remain in the current environment.
Q: The employee experience is just as crucial as the customer experience, but do brands focus on EX as much as CX?
Cure: I think most companies believe in employee experience as a critical driver and the foundation of a great customer experience. Focusing on employee experience leads to high engagement and better retention, which ultimately supports a stronger customer experience.
While I believe that most companies seek to practice this, some barriers, including all the environmental challenges I mentioned earlier, get in their way. Employee experience must include elements of compensation, but also training and growth opportunities. When organizations under invest in the front line, they are left with neither a good customer or employee experience.
Another structural issue is that the customer and employee experience is often siloed in organizations, reporting to different areas and not aligning with their strategies.
Q: How is the employee experience directly linked to retention and engagement?
Cure: There is a great deal of data over the past decades that speaks to the correlation between employee engagement (which is driven by the employee experience) and retention. We know engaged employees are more productive, committed to the organization and its values, and less likely to leave, so the strategies we use to build employee experience matter.
Q: What are the key elements of a positive employee experience?
Cure: We think the employee engagement and experience are all about the relationship between the employee and the leader. While that is true, the experience starts at employee selection.
The recruitment process should be warm, welcoming, and inclusive. The onboarding process should help new employees feel secure and like they are part of the organization and team. Ensuring new employees have the right equipment, are introduced to the right people, and have connections from the beginning can be critical. Are they being offered adequate training and growth opportunities to succeed as they grow with the company?
Additionally, the relationship with their leader is critical. Ensuring adequate recognition and performance management feedback is essential. Everything we do in relation to our team members impacts the experience.
Q: How can retailers create a workplace culture that encourages loyalty and reduces turnover?
Cure: People experience loyalty where they feel respected, supported and seen. For retail employees, loyalty starts with a solid compensation package. Entry-level employees need pay and benefits to support them; otherwise, they have to look elsewhere for employment. Physical and psychological safety are critical for retail employees, as they provide opportunities for learning and development. Be sure to offer recognition and feedback to ease any stories employees might be telling themselves.
A final note: At this level, look to various opportunities for autonomy and flexibility. Scheduling, time off and other strategies can support work-life balance and enhance both loyalty and retention.