In their 2022 research, McKinsey highlighted what workers want from their jobs and how retailers can meet those expectations. They’ve now revisited the issue with new survey data, focusing on how workers’ needs and employers’ responses have evolved, particularly within frontline workforces. This blog article explores their key findings and discusses how MobieTrain’s all-in-one employee platform can help address these challenges and tackle the top 6 attrition factors in retail.
As of May 2024, there were about 2.5 million more job vacancies than job seekers in the United States. This poses a significant challenge for retail executives experiencing higher-than-average attrition rates within their frontline teams. Although the McKinsey report focuses on the United States, this trend undoubtedly affects many other countries.
Post-Pandemic Headaches
The retail and hospitality workforce is still grappling with the aftershocks of the 2020 pandemic. Between February and April 2020, employment in these sectors plummeted by more than 25% compared to January 2020.
By November 2021, employment in all other industries had rebounded to pre-pandemic levels and even increased by 6%. In contrast, retail and hospitality employment only returned to pre-pandemic levels in September 2023.
McKinsey’s May 2023 survey of frontline retail employees revealed that 44% were considering leaving their jobs within the next three to six months. Adding to the challenge, nearly three-quarters of frontline retail employees who left their jobs over the past three years have exited the industry entirely.
As a result, retailers are now competing for a volatile talent pool. The quit rate in retail is higher than in almost every other industry. Gig work and other nontraditional job options have become significant sources of competition, offering benefits like flexible working times and locations—advantages that most retailers have yet to match.
Six Main Attrition Factors in Retail
According to McKinsey’s report, six key factors driving attrition in retail can significantly impact an organisation’s workforce. These factors underscore the importance of relational elements—how frontline retail employees interact with their managers, feel a sense of belonging, and perceive their impact within an organisation. The top attrition factors are career development, compensation, inspiring leadership, health and well-being, meaningful work, and workplace flexibility.
Below, we discuss each of those factors separately and explain how the MobieTrain platform can help you offer a solution for these challenges.
- Career Development
Career development emerged as the top reason frontline retail employees planned to leave their jobs in 2023, up from second place in 2022. To tackle this, retail employers are offering more career growth opportunities.
MobieTrain helps organisations invest in college-level courses and skills certification for frontline employees. Our microlearning tracks fit seamlessly into development programs, offering growth opportunities and a clear career path. Employees who complete training courses on the MobieTrain platform receive certifications and badges.
This gamification aspect motivates them to learn more effectively, fostering healthy internal competition. We’ve observed participants developing relevant skills and becoming four times more likely to stay with their retail employer.
Additionally, MobieTrain offers a coaching tool that allows you to track employee training performance in real-time. You can monitor completed tracks and how well employees have performed. You can also provide direct feedback, demonstrating your involvement and interest in their growth and development.
- Compensation
Compensation has become a more significant attrition factor in retail, now ranking second overall, as wage growth lagged behind inflation in much of 2022 and 2023.
While MobieTrain can’t directly address compensation issues, it can link financial incentives or benefits to completing training courses.
Completing these courses can help employees improve in their roles and achieve targets that unlock financial bonuses and other incentives.
- Inspiring Leaders
McKinsey’s research shows that both managers and non-managers in frontline retail jobs are considering leaving at similarly high rates, sharing common frustrations. However, inspiring leadership is particularly crucial for managers, who cited a lack of it more than any other attrition factor.
More than four in ten frontline retail managers considering leaving noted a lack of inspiring leadership. This highlights potential gaps between field leadership, store managers, and their shift managers. These leadership gaps can cascade, affecting career development, meaningful work, and a sense of well-being.
The MobieTrain platform makes it easier for managers to stay in touch with all employees across different teams and locations. Features like newsfeeds, community chats, and coaching tools significantly improve overall engagement and create inspirational behaviour among managers and employees. This involvement, support, and recognition can boost employee motivation.
- Health and wellbeing
Health and wellbeing have become significant concerns, with poor work-life balance and a lack of understanding from managers often leading to burnout. Unsurprisingly, it’s ranked in the ‘Top 4’.
Our MobieTrain Content Academy offers a variety of training tracks focused on factors that can help optimise your employees’ health and well-being. These tracks cover topics like mindfulness, stress management, and time management.
By providing access to hours of free training, you show your employees that you care about their well-being. You can also customise the learning moments to fit your company’s needs. Designed by microlearning experts, these tracks offer big value to your employees.
- Meaningful work
Some frontline retail workers leave their roles because they can’t see the impact of their tasks. Retail leaders can leverage new technology, like AI, to simplify mundane tasks and enable employees to focus on higher-level responsibilities.
Micro-training can enhance the frontline experience and productivity, allowing workers to shift their time toward more meaningful work, such as engaging with customers or leading colleagues.
Micro-learning tracks can also provide content that explains the importance of employees’ tasks, stimulating their motivation and helping them understand how these tasks contribute to their personal development and to the company’s success.
- Workplace flexibility
The shift in top attrition factors from 2022 to 2023 reflects workers’ perceptions of the economy. While flexibility was a more pronounced factor during the peak of the COVID-19 pandemic, it remains crucial for employers and employees.
Our MobieTrain platform empowers employees to learn, communicate, and perform better—anywhere, anytime, on any device. This means employees are not tied to a specific location for training, allowing them to follow tracks when it suits them best without needing to travel to other places.
Conclusion
Four years after the pandemic began, frontline work continues to challenge the retail sector. Retail leaders and their investors stand to gain by addressing employee attrition issues with the same urgency they apply to other customer-facing opportunities.
Retailers have a significant opportunity to enhance the employee experience and overall performance amid the ongoing high attrition rates. This approach benefits employees and has a positive impact on customers.
Want to discuss and witness with your own eyes how MobieTrain can help you? Ask for your free demo: https://www.mobietrain.com/request-a-demo/
