At 42%, the retail sector has one of the highest turnover rates of people, third only to hospitality and agriculture. With a struggle to stop colleagues leaving for pastures new, retailers are now facing a new challenge as they significantly increase their teams ahead of the busy Christmas period.
So, what steps are retailers taking in an effort to convince their people to stay? Some of the leading supermarket chains in the UK have attempted to address the issue by increasing their pay rates. Aldi set its minimum hourly rate for store colleagues at £12.40 in June 2024, which has remained above the new National Living Wage rate of £12.21 announced in the October budget.
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While these increases are a positive move that provide much-needed financial relief to colleagues in a persistent cost-of-living crisis, pay alone is not enough to ensure long-term satisfaction and retention. Stats show that instead of pay, 96% of Gen Z prioritise the feeling of being valued, included and empowered in their careers. It’s clear that for retailers who want to encourage their people to stay, they will need to consider the wider experience they offer.
It’s not just about the money
Regular pay rises are crucial for colleagues. Alongside the need to keep pace with inflation, higher rates contribute to the overall wellbeing and motivation of the workforce, who feel rewarded for their efforts.
They also serve to assist in recruiting the best talent. Prospective job seekers may be convinced to join a sector that offers reasonable pay and is committed to regular pay rises.
But stores must also focus on providing a positive work environment. More often than ever, colleague satisfaction is deeply influenced by how they are treated, the opportunities they are given and the overall work environment they experience daily.
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By GlobalDataFor example, retailers need to recognise the contributions of their colleagues, provide opportunities for personal and professional growth and ensure they are part of a supportive team. The support of others is critical as well-reported abuse towards retail teams continues to rise. Colleagues in difficult situations with customers may need quick assistance to ensure their safety and long-term wellbeing in a retail role.
Leveraging technology to enhance the work experience
With the employee experience extending well beyond pay, technology can help to deliver a more enhanced and supportive environment for staff. For example, in the context of onboarding and ongoing training for new colleagues, the volume of information can often be overwhelming.
New hires have to absorb a flood of information on processes and sales strategies in a short space of time. But communication tools can transform the onboarding process. New starters can benefit from practical, on-the-job experience that helps them to understand roles and responsibilities more quickly.
In busy seasonal periods where an influx of customers are asking for information on products, colleagues can utilise communication technology to instantly access knowledge from others.
This can significantly reduce the time taken to assist with queries. This instant access to information can also enable new joiners to shadow more experienced colleagues from anywhere in the store.
Clear career growth and development opportunities
With continuous training efficiently delivered by communication technology, employees can quickly build the skills they need to do their job effectively.
Mastering these tasks gives them the basis to pursue career development opportunities with new responsibilities, a pivotal advantage for younger generations who value growth and fulfilment in their work. Individuals can be empowered to make decisions confidently and contribute ideas to benefit both the organisation and their own development.
Colleagues who become well versed in using communication technology can be designated as in-store champions and train others on how to use it to their advantage.
In retailers with multiple stores around the country, policies can be implemented to enable people from the best-performing branches to train colleagues in other locations to improve efficiency. More people then have the opportunity to build their skills and pursue their preferred career paths.
A fair wage is just the starting point
A fair wage is important for retailers so they can put more money into the pockets of hard-working retail colleagues and show commitment to their ongoing development.
But for many people today, the experience at work goes beyond a salary. Retailers must now take steps to improve onboarding and training to support new starters in busy seasonal periods, thereby building a positive and inclusive work culture and providing opportunities for personal and professional growth.
Colleagues can then feel valued, motivated,
and satisfied in their work, reducing the risk of turnover and improving the retention rate for retailers.
About the author: Olivia Robinson leads the UK & EU Sales division at VoCoVo, a retail communications specialist.
