High retail turnover can indicate a booming economy and offer opportunities for career growth, but can also reflect poor management. Low turnover can result from a bleak job market or poor management. Employee retention is crucial for store revenue.
The trend in the retail industry for turnover is historically high compared to other sectors of the economy. Retail turnover represents the rate at which employees leave to pursue other opportunities, retire, or in response to cutbacks or terminations at the point of sale. Most store staff are paid hourly, and overtime and medical and dental benefits may not be included. Subsequently, it is a simple process for retail employees to forego something more challenging or an opportunity that presents a greater chance for career growth. Retail industry trade organizations can provide some context on the state of turnover in the industry on a monthly, quarterly or yearly basis.
If a regional economy is experiencing a slowdown, employers may recognize low retail turnover. This is simply a function of employees evaluating job opportunities because otherwise the job picture is bleak. Low turnover in the retail industry can also be a function of poor management, where individuals in authority do not recognize the need to replace underperforming individuals. If lackluster management is the cause of low turnover in retail, there may be signs of this reflected in the revenue and customer service achieved at a retail location.
High turnover in the retail industry, on the other hand, can reflect a booming economy. In this environment, retailers can become more competitive and offer increasingly attractive compensation to employees. Individuals may change jobs more frequently in order to gain new challenges, and subsequently retail turnover, whether in the discount or high-end arena, may increase. High retail turnover can also reflect reflections of poor management styles. If employees are unhappy with a manager or other co-worker and the work environment becomes unpleasant, a strong economy gives people more chances to change jobs.
An imbalance in retail turnover, whether on the high or low side, can be detrimental to the employer. This is not just the case for sellers. Shoppers at a point of sale are responsible for selecting, negotiating, and purchasing inventory for various store locations. Treating this segment of employees fairly and offering some type of reward program can result in a positive work environment that leads to employee retention rather than turnover. Given the central and influential role that acquiring employees play in a retail business, unwanted turnover can have a detrimental effect on store revenue.
Asset Smart.
Protect your devices with Threat Protection by NordVPN
