As the Holiday Shopping Season Approaches, Korn Ferry Survey of Top US Retailers Examines Employee Turnover
November 25 2019 - 8:00AM
Business Wire
-- Turnover Down Slightly: Experts Point to
Raises in Minimum Wage, Possible Fears About an Uncertain Economy
as to Reasons More Workers are Staying Put --
In advance of the holiday shopping season kick-off, a new Korn
Ferry (NYSE:KFY) survey of top retailers is revealing insights into
employee turnover.
The survey finds that of all retail positions, part-time hourly
store employees have the highest turnover rate, with 76 percent
average turnover in 2019. That’s down from an average turnover of
81 percent in 2018. Less than a quarter (24 percent) of respondents
say they’ve seen an increase in employee turnover since the
beginning of 2019. That’s down from 29 percent in 2018.
“With increases in minimum wage and start rates at many
retailers, workers are hard-pressed to find new jobs that pay more
than what they are already receiving,” said Craig Rowley, Korn
Ferry Senior Partner, Retail and Consumer. “In addition, increased
store closings and automation, such as self-serve checkout, are
decreasing the number of workers needed. As many employees worry
about economic uncertainty and decreasing job opportunities, they
are choosing to stay where they are.”
Corporate positions saw the lowest turnover rates in the
industry in 2019 (17 percent), which is about the same as it was in
2018.
Respondents cited “better opportunities / promotions” as the No.
1 reason for departures in the retail industry, followed by more
money and a desire for a more predictable schedule.
When asked what they will be doing to curb turnover moving
forward, retailers cite “better communicating the company’s
employee value proposition,” “career pathing” and “changes to
compensation plans” as the top focus areas.
“While it is decreasing, employee turnover is still a very real
issue for retailers,” said Rowley. “To retain top employees,
employers need to lay out clear career paths, offer training, pay
competitive wages and provide predictability in work schedules.
It’s critical that employees feel nurtured and part of the
organization instead of just having a job.”
About the Survey
The November 2019 survey included responses from HR and
compensation professionals at 72 major retail organizations,
representing more than 1.5 million employees.
About Korn Ferry
Korn Ferry is a global organizational consulting firm. We work
with clients to design their organizational structures, roles and
responsibilities. We help them hire the right people and advise
them on how to reward, develop and motivate their workforce. And,
we help professionals navigate and advance their careers.
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Tracy Kurschner 612.309.3957 Tracy.Kurschner@Kornferry.com
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