Upskilling: A Key Strategy for Decreasing Retail Employee Turnover

The retail industry is one of the most dynamic sectors in the economy, with a massive frontline workforce that is designed to cater to the needs of consumers. However, the industry faces a significant challenge in retaining its frontline employees. High turnover rates among retail employees have become a widespread issue, and it's affecting the industry's bottom line.

According to a McKinsey report released in 2022, annual employee turnover among frontline retail workers has been at least 60 percent. This is a staggering number that has significant implications for the industry. The same report also stated that one of the top drivers of attrition for employees is a lack of career development. Frontline workers often feel that there is little emphasis on knowledge, skills, and ability development, limited internal mobility, and a lack of career coaching and skill acquiring opportunities.

This lack of opportunity for career growth and development leads to low employee morale and high turnover rates. Many retail workers want to know that there are opportunities for them to advance in their careers within the company. The workers who feel stagnant and lack development opportunities will likely be looking for the door soon.

From a company's perspective, investing in their workers' development not only makes them better employees, but it makes them more likely to stay. Regular training and growth opportunities are critical ways any company can encourage retention. In a recent HR survey, it was found that 64% of retail workers want opportunities for career growth within the organization. Yet, 53% of these workers do not receive regular training.

It is important for companies to offer their employees skills-based training to give them a chance to further their education and opportunities to grow within the organization. Companies should let their employees know what skills they need to develop to progress in the organization, and they should look to their own employees first when they need to fill a position.

Additionally, companies can benefit from mapping out career paths for their employees. By creating a clear path for advancement, employees can see that there are opportunities for them to grow within the organization. This can be done through a combination of skills-based training, mentorship programs, apprenticeships,  job rotation and career switch opportunities. 

In the US, retail businesses are losing a staggering $40 billion annually due to entry-level talent shortages and poor retention of frontline employees. But with the right investments in employee development and upskilling, this cost can be significantly reduced. Technical upskilling programs can equip frontline employees with the necessary skills to fill hard-to-fill tech jobs, and the best part is that companies can use tax-deductible tuition assistance funds to invest in their employees' professional development.

These courses can be designed to last for more than 12 months and take place outside of working hours, making it easier for frontline employees to balance work and learning. By enrolling in these courses, frontline workers are more likely to stay with the organization, reducing turnover rates. After completing their training, employees can transition into entry-level tech jobs within the organization, benefiting both retail companies and their employees.

In conclusion, reducing entry-level talent shortages and improving the retention of frontline employees in the retail industry requires investing in employee development and upskilling. Offering technical upskilling programs is a great way to fill hard-to-fill tech jobs, retain talent, and create a skilled workforce. By prioritizing employee development and upskilling, retail businesses can save on costs, improve retention rates, and thrive in the competitive marketplace.

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