Reducing employee turnover in retail

According to the latest data from the Australian Bureau of Statistics, the retail sector currently employs over 1,286,100 people, which accounts for around 9.9% of the total workforce. Over the past five years, employment in the industry has increased by around 4.1%, however despite this, retail employee turnover is still relatively high.

In this article, we examine a range of strategies to reduce employee turnover, how to minimise risk factors, and how to harness recruitment best practices to positively impact your organisation’s bottom line.

Understand the key causes 

Employees move on for a range of reasons, some of which may be out of your control. However, minimising employee turnover can often be a simple as identifying employees that aren’t the right ‘fit’ and formulating strategies to retain those that are.

Good communication can offer these insights, including holding one-on-one meetings which can provide an open forum for employees to discuss the positives and negatives of their job, including instigating a discussion about hours, wages and even advancement.

Employee surveys can also gauge employee satisfaction, particularly if conducted by an outside source that can provide anonymity and therefore encourage honesty and valuable feedback.

And while it’s often difficult to let an employee go, it can be an opportunity to gather insights via an exit interview. This can include a discussion about why they are leaving, what they liked/disliked about their job and the company and what improvements they would suggest that might help retain future employees.

Increase motivation

Employees who leave organisations, including those in the retail sector, often do so because they are not offered a clear career path or an opportunity to develop their skills. This is especially prevalent with Millennials (employees born between 1980 and 1994).

Positive recruitment strategies include offering retail workers more responsibility to make them feel more engaged and empowered, and it also demonstrates that you trust and value them. Offering career advancement in the form of a promotion or a position of leadership can increase motivation and it rewards employees for performance.

Retail organisation can also create open dialogue about future opportunities, encourage a culture of promoting internally and offer mentoring or training programs to increase education and new skills.

Reward loyalty

Regular pay rises and bonuses are a valuable way of retaining retail employees, however other incentives also work. These can range from tailored Key Performance Indicators (KPI’s) and perks like regular flexitime, to free food, gym memberships, financial planning advice and social team building activities.

Aside from assisting with attracting new top talent, rewarding loyalty can also enhance your organisation’s culture and increase employee productivity. The key is to promote employee wellbeing and a sense of purpose across all aspects of their lives, including in their financial security, social relationships, physical health and community involvement. 

Hire carefully

Taking the time to hire the right person saves time, money and stress in the long run, however it does require a carefully thought-out recruitment strategy. This is particularly true in the retail sector when it comes to hiring for seasonality or diversity.

Reduce employee turnover and positively impact your bottom line by understanding the key causes, minimising risk factors, structuring attractive bonuses and incentives and using a strong recruitment strategy.

Interested in learning more about screening, shortlisting and selection best practices? Contact an Employment Office Recruitment Specialist on info@employmentoffice.com.au or 1300 366 573.