Customer Service

A better experience for employees is the starting point for improving the retail customer experience

Retailers have gone through a number of years of upheaval. The pandemic in 2020 resulted in over 15,500 stores shutting down permanently, which contributed to an exodus of frontline workers during the Great Resignation. An up-to-date investigation revealed that even at present, 59% of retail frontline employees have thought about resigning at some point in the past year, which represents a 22% rise compared to the previous year. This signifies a distinct chance for retail businesses and HR leaders to act quickly in order to bolster and keep their employees.

In Q1 2024, consumers’ expenditures on retail goods reached $1.71 trillion, of which e-commerce purchases represented just 15.6%. It is crucial to establish a reliable frontline workforce, as American consumers continue to depend on physical retail stores for their purchases.

At the same time, retailers should not use job numbers as an indicator of employee satisfaction with their work environment and benefits. Purchasing Power’s latest research indicates that while 87% of retail employees enjoy their jobs, one-third are keeping their options open to other industries.

There are various reasons that can be linked to potential attrition, one of which is job-related stressors such as dealing with extra working hours or adverse customer encounters. However, external factors such as the increasing cost of goods, unexpected expenses, or a health crisis may drive this workforce to look for higher wages or improved benefits.

To reduce the risk of losing skilled employees and to enhance customer satisfaction, retailers need to reassess their approach to meeting employees’ needs.

The survey conducted by Purchasing Power pinpointed various aspects of the employee experience that retailers can enhance to better the customer experience:

A timetable that aligns more closely with employees’ lives
To reduce employee turnover, retailers need to confront the toughest aspects of frontline workers’ experiences. As a result of the shortage of workers, many employees are being requested to devote additional time to their positions. However, the advantages do not always correspond to the extra effort involved.

The survey revealed that 40% of individuals are requested to manage several tasks at once, while 41% of employees receive requests for overtime work without extra compensation. Furthermore, 39% are requested to complete more tasks within a shorter timeframe.

As the holiday shopping season approaches, retail workers will soon encounter increased consumer demand and additional responsibilities aimed at bolstering overall sales, including tasks related to inventory organization and management.

The absence of an adequate workforce to maintain store operations during the peak shopping season raises the likelihood of operational inefficiencies, resulting in stressed employees and poor customer experiences. As staff members try to manage various duties at once, the likelihood of inventory problems increases, which can result in stock shortages or lost sales.

In order to prevent this, employers need to adopt a new approach to managing schedules. A total of 54% of employees expressed a desire for more reasonable working hours, while 49% indicated they would like improved control over their schedules.

A benefits program designed for the realities of today Research conducted by Purchasing Power has identified that the main motivators for retail workers to remain in their field are improved pay (72%), enhanced or additional benefits (55%), and greater control over their schedules (49%). The results show that the employees clearly worry about personal and financial difficulties they might be encountering at home.

Since unexpected costs like medical bills, home appliance purchases, and car repairs can lead to significant disruptions, employees are particularly interested in financial wellness benefits. According to research conducted by Purchasing Power, 43% reported that their employer already provides resources aimed at improving credit scores, while 42% indicated that they have access to annual tax assistance tools through their employer. Nonetheless, 31% expressed a desire for financial counseling, while 29% sought medical-deductible financing.

Furthermore, the participants indicated that they would appreciate assistance with managing the expenses associated with buying large items. Almost 30% mentioned that auto repair and maintenance are their most frequent unexpected costs, while slightly under 20% indicated that major appliance repair and replacement pose a concern.

Almost 90% of employees in retail claim that benefits are equally important as salary. Programs like an employee purchase initiative can lessen the effects of these considerable costs. With purchase programs, employees can acquire items like major appliances, electronics, furniture, and car tires through a flexible and convenient payment plan that is deducted directly from their paycheck. 39% of those surveyed indicated that if their retailer offered an employee purchase program, they would be more inclined to remain with that retailer.

A rising tide lifts all boats. Retailers can look forward to a promising future, as consumers are seeking the individualized attention and unique experiences that only physical stores can provide. In the end, it will be the human touch that bolsters this revival. Retailers need to offer an employee experience that secures workers’ dedication and commitment to fostering a positive customer experience.

Retailers can establish the foundation for a customer-retaining in-store experience by tackling the main worries of their team members, such as financial difficulties, medical needs, and scheduling control.