How Retailers Can Build and Retain a Strong Frontline Workforce in 2024

The U.S. job market shows there are more job vacancies than seekers, especially challenging for retail executives facing high attrition rates. Research from over 1,000 U.S. frontline retail workers highlights changing needs and employer interventions over time. Key factors causing retail employees to leave include lack of career development, uncompetitive compensation, and lack of inspiring leadership. The retail and hospitality sector's employment has lagged behind other industries since the pandemic, with recovery to pre-pandemic levels only reaching in September 2023. A significant portion of retail workers leaving jobs are exiting the industry entirely, indicating a competition for a diminishing pool of talent. Attrition factors now emphasize relational aspects, with career development and compensation as top concerns. Leadership, particularly inspiring leadership, is crucial for retaining retail managers and employees. Analyzing employee data and understanding their priorities can help retailers address these issues. Investing in employee experience is shown to directly improve customer experience, affirming the connection between engaged employees and business performance. The cost of losing frontline employees is highlighted as substantially impacting retailers' bottom lines. Retail executives are encouraged to quantify the impact of frontline issues, understand employee needs, build strong frontline management, and reimagine impactful work, utilizing technology like generative AI to improve the retail work experience.