As a strategic advisor, I have been privileged to work in multiple industries. Most of my work focuses on helping organizations develop their leaders, improve their culture, and retain their top talent. One of the five biggest industries that struggle with these issues is Retail. We all know the retail industry is no stranger to high turnover, but in recent years, the challenge of retaining talent has reached critical levels. In 2020, I worked with one of the nation’s largest network of outlet shopping centers across the United States and Canada. This company provides shoppers access to various retailers, from luxury labels to everyday favorites. As I advised them on their organizational culture, the leadership team acknowledged how the pressures of adapting to e-commerce and changing consumer habits have made it increasingly difficult for them and other retail companies to attract and keep top talent.
Their human capital management team feels like the problem has gotten even worse. The pressures of low wages, tough working conditions, and the post-COVID mindset have pushed their people to the breaking point. When talent leaves, so does your ability to provide the kind of customer experience that keeps any retail business thriving.
The retail sector is at a critical crossroads. Now is the time to act if you want to stop the talent drain and build a culture that attracts and retains top talent.
Why Retail Is Struggling to Retain Talent
- Low Pay and Limited Benefits: Let’s be real—many retail jobs just don’t pay enough. With wages that barely cover living expenses and often minimal benefits, it’s no surprise that employees are leaving for better opportunities. If your people don’t feel financially secure, they won’t stay.
- Lack of Career Growth: Retail jobs are often seen as stepping stones, not careers. Employees who don’t see a clear path to advancement are less likely to invest their time and energy in your company. If you’re not offering growth opportunities, you will lose your best talent to industries that do.
- High-Stress Work Environment: Retail is tough. Your employees are on the front lines, dealing with customer demands, long hours, and often unrealistic expectations. This kind of stress leads to burnout; when that happens, your people start looking for a way out.
Three Strategies to Retain Talent and Build a Better Culture in Retail
1. Pay People What They’re Worth
It might sound simple, but it’s true: if you want to keep your best people, you need to pay them fairly. In today’s competitive job market, wages and benefits are more important than ever. But it’s not just about throwing more money at the problem. It’s about showing your employees that you value them—and that starts with fair compensation. If you are honest about it, you are already losing more in turnover and training costs than you would with higher wages.
What You Can Do Now: Conduct a market analysis to ensure your wages and benefits are competitive. Consider offering additional perks like flexible scheduling, health benefits, or tuition reimbursement. When your employees feel valued, they’re more likely to stay loyal.
2. Show Them a Future with Your Company
If you want to keep your employees, you need to show them that they have a future with your company. That means creating clear career pathways and offering opportunities for growth and development. When your people see that they can advance and build a career with you, they’re more likely to stay for the long haul.
What You Can Do Now: Develop a “Retail Associate to Retail Executive” program that identifies high-potential employees and provides them with the training, mentorship, and opportunities they need to advance. Share success stories of employees who have grown within the company to inspire others. This would be an opportunity to consider cross-training with roles in supply chain management, operations, and marketing.
3. Create a Culture of Support
Retail can be stressful, but that doesn’t mean it has to be. Creating a supportive work environment where employees feel valued and heard can make all the difference. You have to make retail work FUN! This isn’t just about reducing stress—it’s about building a culture where people are inspired to come to work. When your employees feel supported, they’re more engaged, more productive, and more likely to stick around.
What You Can Do Now: Throw a party for your employees. Create a bi-annual event to celebrate your team’s work serving customers. Hire a DJ or Band, cater some food, and have a good time with your team. Pair this with a recognition program that celebrates outstanding service and teamwork. When your employees feel appreciated, they’re more likely to stay committed.
Conclusion
The retail industry is facing a talent crisis, but it doesn’t have to be this way. By paying people fairly, offering clear career advancement opportunities, and creating a celebratory culture, you can build a workplace that not only attracts top talent but also keeps them. As someone who’s worked with leaders across industries, I know that the key to success in retail is putting your people first.
Here is a helpful resource to get you started – How to Start Turning Around Your Workplace Culture
If you’re ready to make these changes and need guidance on how to get started, let’s connect. If you’re looking for a speaker to inspire and guide your organization toward a healthier company culture, consider booking me for your next event. Together, we can create a culture that keeps your best people right where they belong—on your team.
Also, don’t forget to connect with me on LinkedIn.
