How Retailers like Macy's and Best Buy Improved Employee Retention by 30%
Hi there,
Welcome back to another edition of Training the Frontline, your favorite source for all things frontline training.
In today's newsletter, we're answering a question that we know our readers are constantly asking:
How are my peers retaining their staff?
With an average turnover rate of 60% - resulting in losses of $19 billion a year - retention is one of the biggest challenges facing the retail industry. Yet, there are companies who have managed to avoid sky high churn. Scroll down to discover their retention strategies.
Also in this edition: access to our comprehensive guide on combating retail turnover, plus an in-depth case study showing how one company achieved a 5% uptick in frontline retention.
Thanks for reading,
The eduMe Team
Frontline news ??
Deep dive ??: How retailers like Macy's and Best Buy improved employee retention
Despite huge churn problems in the retail sector, companies like Macy's and Best Buy have managed to remain comfortably below the national average.
Best Buy even cut its own turnover rate by 30% in the last four years despite employing over 125,000 staff.
So, what's their secret? Let's find out ??
1. Competitive benefits
69% of employees said they would feel more loyal to a company that has a rewards program. In fact, 90% would choose an improved benefits package over higher pay.
Knowing that this is a key factor in driving retention, Best Buy are constantly investing in improving their benefits package to meet shifting employee expectations.
Tuition assistance, backup childcare and paid time off for part-time employees are among some of their most competitive offerings. They've also added mental health resources and a paid caregiver program can receive up to four weeks off at full base pay for family care.
By providing this kind of support, they're not just telling employees that they matter - they're showing them.
2. Growth and development
It's well proven that companies offering continuous development and advancement opportunities are more successful at retaining staff.
For example, 87% of millennials (who will make up a significant portion of the global workforce by 2025) consider professional development as being very important when deciding whether to remain with a company.
Macy's is a leading example of a company that prioritizes developing internal talent, focusing on employees at all levels so that they can advance in both responsibility and pay.
So much so that 74% of Macy's executive positions were filled internally.
They achieve this by offering upskilling programs and 'chat' sessions where associates can listen to executives on how they advanced their current positions, as well as mentoring programs and development training to almost all of their workforce.
3. Employee-friendly technology and training
44% of retail staff workers say that outdated technology is their biggest frustration with the industry.
Best Buy has led the charge in digital transformation. Previously relying on costly solutions that interrupted employee's flow of work (e.g. desktop-only software), they now invest in products that can be used on the go and better suit their staff's needs.?
And other retailers are doing the same. Smarter investments in employee training became a priority for the National Retail Federation as well as other retailers like Macy's, Target and Walmart.?
This includes the 'RISE Up' training initiative which aims to provide employees with retail knowledge that sets them up for a long and successful career.
Extra reading ??
How to Retain Your Retail Employees: The Ultimate Guide
Download our ultimate retention guide to understand what's causing turnover among your workforce, calculate and track your own retention rate, and learn effective strategies to reduce employee turnover.
Case Study: How APC Overnight increased frontline staff retention by 5%
Not in retail? This case study with APC Overnight is a great example of how training can influence frontline retention in another industry that historically struggles with retention.
Join the conversation ???
We're very excited to be joining our friends at Speakap next month for a live webinar on one of our favourite topics: The Real ROI of Effective Frontline Employee Training ??
Join us to learn how to optimize both the content and delivery of your frontline training programs in a way that boosts employee engagement, knowledge retention and, ultimately, your business results.
Secure your spot below ??
--
Want even more insights into the world of frontline training? Head to edume.com for more free resources ??