Poor staffing practices damaging retailers’ bottom lines

Inefficient staffing processes and lack of adequate workforce engagement tools are causing retailers to leave money on the table.



That’s according to new survey by Workjam, which found that only 17% of retail managers feel their stores’ hourly associates are very motivated and engaged. As a result, 47% of the managers say at least 5% of their staff quit in an average three-month period.



Poor staffing practices are one of the largest barriers to hourly employee engagement, and also one of the most crucial elements to the hourly worker experience, according to WorkJam, which surveyed 250 retail store, district and regional leaders across the U.S. However, the tools and processes retail managers currently use are falling short. The survey found that 72% of managers are not satisfied with their workforce management system’s ability to create schedules that accommodate both store labor needs and associates’ preferences, and 62% admit associates have quit over ongoing scheduling conflicts.



Seventy-two percent of managers are not satisfied with their workforce management system’s ability to create schedules that accommodate both store labor needs and associates’ preferences, and 62% of managers admit associates have quit over ongoing scheduling conflicts.



“Employee engagement needs to be more than a ‘feel-good’ corporate initiative for retailers,” said Steven Kramer, co-founder and CEO of WorkJam. “Most retailers don’t realize the significant financial impact employee engagement has on their bottom line. If they want to increase profitability, they need to start at the root cause and adjust how they engage their workforce.”



• Sixty-three percent of retail managers believe reducing turnover by as little as one associate per month could lift monthly revenues by at least 6%.

• Seventy percent of managers clock extra hours to handle administrative duties like reassigning and swapping employee shift.



• Eighty eight percent of managers say their stores are understaffed on a weekly basis, and 46% say their stores suffer from understaffing at least 10 hours each week.



• Fifty-five percent of managers say the head office rarely or never recognizes hourly employees for doing good work.