Outstanding customer service is one of the ways that sets retailers apart from the competition. Employees are typically the face of retail companies, so it is important for companies to hire and retain exceptional staff members.
However, recent difficulties with recruiting and retaining top talent have presented a challenge for companies to ensure they have the best staff to deliver great customer service.
Discover the current challenges that are impacting retail employers and how on-demand pay may help alleviate them by supporting employees.
Recruit the Best Talent
Nearly 90% of 1,200 employers surveyed by SHRM in July 2021 stated they were having issues with filling positions, and 73% saw a decline in applications for “hard-to-fill positions.”1
According to the U.S. Chamber of Commerce Analysis from November 2022, 60% of job openings remain unfilled in the wholesale and retail trade industry.2 To aid in achieving their business goals, retailers should focus on recruiting and investing in personnel with skills training and valuable benefits.
On-demand pay may be a differentiator for retail companies. According to a DailyPay sponsored survey done by the Mercator Advisory Group, the annualized improvement in turnover rate in the retail industry was 24% for employers who offer DailyPay over those who don’t.3
Retaining Skilled Employees
In addition to recruiting challenges, employee retention continues to be a pain point for retail companies.
The annual separation rate for retail in 2021 was 64.6% in comparison to the average rate of 47.2% across industries, according to the U.S. Bureau of Labor Statistics.4
Retail employees leave for a variety of reasons, including “health and well-being” and compensation, according to a study conducted by Mckinsey5. To address these retention issues, retailers should invest in their employees with valuable pay and benefits packages that align with employees’ desires.
According to the EWA Report from the Mercator Advisory Group and commissioned by DailyPay, the average tenure of employees who used DailyPay increased by 27% over non-DailyPay users.6
Deliver an Exceptional Customer Experience
The ability to deliver an exceptional customer experience is dependent on retailers adapting to omnichannel trends. If retailers don’t evolve, they could fall behind the competition.7
According to a projection by Forrester, online retail sales are expected to reach $1.6 trillion, accounting for 30% of the market by 2027.8 Retail companies must embrace this growth and be able to connect in store and online touchpoints along with arming employees with the skills to meet these omnichannel shifts.
Retailers must keep up with customer expectations to encourage shoppers to return. According to a December 2021 study from Qualtrics and ServiceNow, 80% of customers said they have switched brands because of poor customer experience.9
Training, engaging and supporting employees properly will help as they adapt to new roles and responsibilities to further improve the customer experience. Retailers should consider how they can improve employee engagement and well-being throughout this process. In fact, engaged employees create better experiences for customers.10
DailyPay’s solution has proven to engage and motivate employees, with 48% of users asked in a November 2022 DailyPay survey saying they are more motivated to remain with their current employer because they offer DailyPay.11
Focus on the Employee Experience to Improve Customer Relationships
To address these challenges, retail employers should focus on how they can improve the overall employee experience, leading to better customer service. Retail employers need to empower and motivate staff to provide exceptional customer service.
Financial wellness benefits like on-demand pay can help retail employers to stand out amongst the competition to hire and retain highly skilled staff members.
Learn how DailyPay can help.
All information herein is for educational purposes only and should not be relied upon for any other use. The information herein does not constitute the rendering of financial advice or other professional advice by DailyPay. No fiduciary obligation or duty exists, or is created, between you and DailyPay. DailyPay does not warrant the completeness or accuracy of any information provided to you.
1 https://www.marshmclennan.com/insights/publications/2021/september/retail-talent-shortage-or-labor-shift.html:DailyPay, 2020
2 https://www.uschamber.com/workforce/understanding-americas-labor-shortage-the-most-impacted-industries:DailyPay, 2020
3 EWA Report, Mercator Advisory Group commissioned by DailyPay, 2021 :DailyPay, 2020
4 https://www.bls.gov/news.release/jolts.t16.htm:DailyPay, 2020
5 https://www.mckinsey.com/industries/retail/our-insights/how-retailers-can-attract-and-retain-frontline-talent-amid-the-great-attrition:DailyPay, 2020
6 EWA Report, Mercator Advisory Group commissioned by DailyPay, 2021:DailyPay, 2020
7 https://www.salesforce.com/eu/blog/2020/12/omnichannel-strategy-benefits.html:DailyPay, 2020
8 https://www.forrester.com/blogs/by-2027-us-online-retail-spending-will-reach-1-6-trillion/:DailyPay, 2020
9 https://www.qualtrics.com/blog/qualtrics-servicenow-customer-service-research/:DailyPay, 2020
10 https://www.qualtrics.com/experience-management/customer/retail-cx/:DailyPay, 2020
11 November 2022 DailyPay User Survey :DailyPay, 2020