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Merrick, NY—A record 4.3 million Americans quit their jobs in August, part of what’s becoming known as “The Great Resignation,” and retailers are among the hardest hit. U.S. Department of Labor statistics released October 12 show only bar/restaurant workers surpassed retailers in quit rate: 892,000 workers in the food service and hospitality industry left their jobs in August, followed by 721,000 retail workers. The retail quit rate was 4.7%, 39% higher than the overall 2.9% quit rate among all employers. And contrary to expectations, the end of extra federal pandemic unemployment benefits has not driven workers back thus far. 

For retailers, it couldn’t come at a worse time of year. Many have already tried sweetening the pot with higher wages and sign-on bonuses, but they’re finding that’s not a magic bullet either. In an article in Retail Dive, Andrew Challenger, senior vice president of Challenger, Gray & Christmas, a Chicago-based executive outplacement firm, said, "Wages are a classic lever that employers pull when they face a labor shortage, but it doesn't seem to be getting the job done entirely in this environment. I think smart employers right now are focusing on making their jobs attractive in ways that aren't just about the numbers."

While better pay does matter in attracting and keeping employees, working conditions like unstable scheduling, concerns about COVID risks, and burnout have been key drivers of the quit rate, explains the Retail Dive article.

Meanwhile, this article in Retail Customer Experience detailed some of the steps retailers can take to attract and keep talent. Retail Customer Experience interviewed Dr. Natalie Baumgartner, chief workforce scientist at the Achievers Workforce Institute, who pointed out that engagement and balance are key to keeping employees and replacing one worker can cost as much as $15,000. Here are some key excerpts from the article:

• Work-life balance is the top reason workers stay in their position. Managers should lead by example in using company benefits and taking time off.
• Employees that receive more frequent recognition are more likely to feel engaged. Incentivize workers to acknowledge each other's accomplishments and hard work, and managers to show their gratitude, developing a culture of recognition that's both top-down and bottom-up.
• Employees with a strong sense of belonging are twice as likely to recommend their company to others and say they rarely think about looking for a job elsewhere. When an employee feels heard, they are 4.6 times more likely to perform to the best of their abilities. Feedback such as surveys can help retailers understand employee needs straight from the source.
• Before the pandemic, many organizations centered employee engagement around "fun perks," but today nearly half (49%) of workers said they'd be more engaged if their employer took a stand on racial and social injustice issues.

Baumgartner’s biggest piece of advice for retailer leaders looking to boost hiring efforts and retain workers is to listen to staff. “No one knows the ins and outs of a retail organization better than its frontline employees. They hold a wealth of knowledge from their biggest pain points to what they enjoy most about the job,” she told RetailCustomerExperience.

Read more here and here.