While the retail landscape continually evolves, one challenge continues to plague retail owners and managers alike: hiring and retaining quality employees. As a retail consultant with over three decades of experience, I've witnessed firsthand the shifting dynamics of the workforce and the struggles many retailers face in adapting to these changes.
The retail industry is at a crossroads. With the rise of e-commerce, the gig economy, and changing workforce expectations, traditional hiring and retention strategies are no longer cutting it. Yet, too often, I hear retailers falling back on tired excuses, blaming "Millennials," "Gen Z," or "those damn kids" for their staffing woes.
It's time for a reality check…
The problem isn't with the younger generations entering the workforce. The problem lies with outdated hiring practices, unrealistic expectations, and a failure to adapt to the needs and values of today's employees.
Let's start with a hard truth: the days of hiring someone at $2.10 an hour and expecting undying gratitude are long gone. I know – some of you are thinking, "But Bob, I put myself through college selling shoes!" Well, guess what? That's not the reality of today.
Since the rise of the gig economy, a young person has options. They could have a side hustle, flip brands on online marketplaces, or drive for Uber. And here you come along, saying, "Come to my retail store. I need you to be trained. You'll need to cover the sales floor, provide great customer service, and be friendly. And I need you to be willing to go the extra mile. Oh, and work alone. And for that, I'll give you the princely fee of $10 an hour. I am so generous. I'm an amazing employer. I am the one everyone wants."
Newsflash: They're looking at you like you're joking. Why? Because they can easily get $15 at McDonald's or $22 at Lululemon. Wake up, folks! The game has changed, and if you want to play, you need to change your strategy.
In this post, we'll examine the current state of retail employment, debunk common myths about younger workers, and provide actionable strategies for attracting and retaining top talent in your retail business. Whether you're a small boutique owner or managing a large chain, these insights will help you transform your approach to hiring and create a workplace that attracts and nurtures the best retail talent across all generations.
Understanding Today's Workforce
Here's the deal: employees these days understand that they're making you money. They want to know, "What am I getting in return?" They understand they are exchanging their time doing what they want for the money they need - it is not a passion to work in retail. So, let's break down what matters to today's retail workforce:
- Competitive Pay: Yes, you need to pay more. It's not 1985 anymore.
- Meaningful Work: They want to feel like they're contributing to something.
- Growth Opportunities: Provide a path for advancement.
- Flexibility: Be willing to work around their other commitments.
- Respect: Treat them like human beings, not interchangeable parts.
One of our viewers, Patrick, nailed it when he said, "I drink the Kool-Aid for my company because they took me under and helped me accomplish personal financial goals. It wasn't just because I wanted to sell phones. They helped me learn investing, real relationships, and how to become an incredible networker."
You must be that kind of employer to attract and keep top talent.
The Training Travesty
Now, let's talk about training. Oh boy, do we have some work to do here. If your idea of training is telling a new hire to "shadow" someone, you're setting yourself up for failure. Imagine if you were going to play in the Olympics. Just shadow the guy on the rings. Okay. Shadow the girl on the balance beam. Shadow the pitcher of the Yankees. You'll pick it up.
That's not training, folks. That's negligence.
And yet, I see it all the time in food service. Shadowing someone is not training. It’s telling someone what you did after you did it, which is very stressful and ineffective. If you keep hearing, “What do I do again?” that is on you—not the learner.
Training needs structure, just like you see provided for a Marriott front desk agent or someone in healthcare.
Real training involves:
- A structured onboarding process
- Clear expectations and goals
- Hands-on practice with feedback
- Ongoing support and development
Moreover, offering a structured training program can significantly incentivize potential employees. When candidates see that you provide clear pathways for learning and development, they're more likely to view your stores as a place that values growth and supports their career to make money. This can be a powerful draw in a job market that is not projected to improve for a decade. Focusing on developing talent and not just filling a shift sets you apart from other retailers who don't.
Remember, you're not just teaching them how to operate a cash register. You're also teaching them how to represent your brand, solve problems, and create exceptional customer experiences.
The Leadership Challenge
Here's where the rubber meets the road: leadership. If you're sitting in your office complaining about how no one wants to work anymore, you're part of the problem. Great retail leaders get their hands dirty. They lead by example.
One thing that employees nowadays understand is that I'm making you money. What am I getting in return? Everything is time and money.
So, here's my challenge to you: Take five minutes with every employee every day. Find the one job that you hate doing, and do it with them. Show them that you're in this together. Be honest and direct. This is a situation we're going to do together, and this is why it's necessary.
The Amazon Dilemma
I was recently asked, "How can we get people to stop buying from Amazon and put them out of business forever?"
That's not going to happen. And here's why: Amazon is easy. It's that simple.
Brick-and-mortar retailers can unknowingly impede the buying process. If you have to go in the back and find a product, it slows the buying process and adds friction. That allows the shopper to wait and wonder how long it will take. They can get frustrated, search and click the item, and just buy it while you’re still rummaging around in a stockroom. Whenever there's friction in the shopping situation, you'll lose somebody.
If I come by and you aren't open yet or closed early, you've opened the door to Amazon.
Instead of trying to "beat" Amazon, focus on reducing friction in your own business. Look at your customer experience through fresh eyes. Are there long lines at checkout? Is your website user-friendly? Do your employees know how to engage with customers effectively?
Remember that showrooming is a reality. But instead of complaining about it, train your staff to engage customers on their phones. Teach them how to add value that Amazon can't match.
The Hiring Process: Asking the Right Questions
When hiring, you must dig deeper than "What hours can you work?" Here are some questions that can reveal a lot about a potential employee:
- Tell me about a time when you went out of your way for a customer. What did that look like?
- Can you describe a time when you faced a challenging situation at work? How did you handle it?
- What's your approach to learning new skills?
- How do you handle stress or pressure at work?
- Have you ever ghosted an employer before, and if so, why?
Listen carefully to their answers. Are they specific? Do they show initiative and problem-solving skills? These are the qualities you need in today's retail environment. And don’t fill the space if they are silent. They must be able to speak in complete sentences.
The Retention Game
Hiring good employees is only half the battle. Keeping them is where many retailers fall short. Here's what you need to focus on:
- Recognition: Celebrate wins, both big and small.
- Development: Invest in their growth. Offer training beyond just job skills.
- Communication: Keep an open dialogue. Listen to their ideas and concerns.
- Work-Life Balance: Respect their time off. Don't expect them to be available 24/7.
- Fair Compensation: Regularly review and adjust pay scales.
One of my fans shared a quote from her dad: "Hire people smarter than you, pay them, and let them do their jobs." That's solid gold advice right there.
The Generational Myth
Let's address the elephant in the room: the generational divide. I'm sick and tired of hearing about "those millennials" or "Gen Z doesn't want to work." Cut it out. Young generations are the most educated, hopeful, intuitive, and smart. And they require you to up your ante or opt out of the game of retail.
Every generation enters the workforce with different expectations and values. It's our job as leaders to understand and work with those differences, not complain about them. Ask them, then incorporate their ideas on sustainability practices, community involvement, and attracting customers. Don't be afraid to ask for their help mastering digital transitions. Look at what you can learn versus how different their life experiences have been to your own.
You need to train and develop your staff to be savvy with digital tools, understand data, and be able to manage multiple sales channels.
Great customer service isn’t just about the in-store experience anymore. It has to be seamless online and across all digital platforms. That’s why it's essential to have training programs that cover these areas to stay competitive and meet customers' needs today.
Creating a holistic work culture that promotes innovation and teamwork while keeping a laser-sharp focus on the customer is key. When your employees feel they matter, they're more likely to make your shoppers feel they matter.
The Reality Check
Let's be real for a moment. Not every person who walks through your door looking for a job will be a superstar. And that's okay. Your job is to identify those who have potential and are willing to learn.
I can't accept someone who has their mother come in to get an application for them and then returns it only half-finished. That doesn't create a good impression. Similarly, it's a no-go if they come in looking like they just rolled out of bed in their pajamas. You can't transform them into the ideal candidate you were hoping for.
But for those who might be new to the job but show up prepared and eager to learn? Those are the diamonds in the rough. Your job is to polish them until they shine.
What it Takes to get Them to Stay and not Ghost you
How do you become an employer of choice? Here's my tried-and-true method:
- Pay Competitively: Do your research. Know what other employers in your area are offering.
- Train Extensively: Invest in a comprehensive training program. It'll pay off in the long run.
- Lead by Example: Get out of your office and onto the sales floor.
- Communicate Clearly: Set expectations and give regular feedback.
- Create Opportunities: Show your employees a clear path for growth within your company.
- Recognize and Reward: Celebrate successes and incentivize great performance.
- Foster a Positive Culture: Create an environment where people want to come to work.
The Final Word
Look, I know retail isn't easy. I've been in this game for decades, and I've seen it all. But I've also seen what works. The retailers who are thriving today are the ones who've adapted to the changing landscape. They see their employees as assets to be developed, not costs to be minimized.
Remember, your employees are the face of your brand. They interact with your customers day in and day out. Invest in them, and they'll invest in your business.
It's time to stop complaining about retail employment and start doing something about it.
So, what are you going to do differently after reading this? Take one action and do it. The future of your retail business depends on it.
