Study: The top reasons that retail employees decide to quit — or stay — are… (2024)

Study: The top reasons that retail employees decide to quit — or stay — are… (1)

A safe work environment is essential to retaining retail talent.

Education benefits are important to today’s retail employees.

Poor or no education benefits (61%) and physically exhausting/stressful conditions (59%) top the list of reasons why employees decide to leave their jobs, according to a study of retail employees conducted in fall 2022 by Lotis Blue Consulting (formerly Axiom Consulting Partners), which evaluated what influences retail employees’ decision to stay, consider leaving or leave an employer. Other top reasons employees quit are dislike of manager, schedule isn’t flexible, not recognized for efforts (all at 57%) and unfair pay practices (54%).

Staying: As to why employees are staying on the job, the top driver was “like working with co-workers” (70%), followed by “job is enjoyable” (68%), diversity and job stability (both at 67%) and ability to take time off (59%).

Other reasons for staying on the job included satisfactory pay (57%) and flexible schedule (55%).

Considering Leaving: A job that is too physically exhausting/stressful (58%) and low pay (56%) are the top reasons employees are considering leaving their job, along with limited or no advancement opportunities, no opportunities for raises/bonuses and poor or no education benefit.

Key insights from the Lotis report are below:

• Looking across categories and the drivers of Stay/Leave decisions, we find that social connections (e.g., “liking co-workers”), an enjoyable and stable job that is not too physically exhausting, and a safe work environment are essential to retaining retail talent.

• Non-unionized retail employees are split on whether they would consider joining a union, but the majority of those who are in a union are satisfied, mostly driven by their perceptions of increased pay.

• Education benefits are increasingly more important turnover drivers for the more transitory segment of the retail workforce, however, these benefits aren’t key retention drivers in the Staying segment.

• While satisfaction with pay level significantly increased as a retention driver, employers should be watchful that perceptions about fairness of pay practices (up 15% from the April study) and promotions (up 9%) are increasing in strength as drivers of turnover and intention to leave.

• Pay satisfaction increased by nearly 20 percentage points [from April] suggesting that the wage wars of spring and summer 2022 had a strong impact on decisions to stay with a current employer.

Research for the Lotis Blue Future of Workforce Study was conducted in fall 2022 and surveyed more than 1,000 employees at 300 retailers across the apparel, big box, grocery, fast casual dining, specialty, convenience store, home goods, luxury apparel and electronics sectors.

Study: The top reasons that retail employees decide to quit — or stay — are… (2024)

FAQs

Study: The top reasons that retail employees decide to quit — or stay — are…? ›

Considering Leaving: A job that is too physically exhausting/stressful (58%) and low pay (56%) are the top reasons employees are considering leaving their job, along with limited or no advancement opportunities, no opportunities for raises/bonuses and poor or no education benefit.

Why do retail employees quit? ›

Low compensation: Financial strain is pushing retail employees to their limits. With inflation and the cost of living surging, 48% of frontline workers cited low pay as the top reason for quitting their jobs. And, of the 85% who experience workplace stress, 36% attribute that stress directly to inadequate compensation.

What is the number one reason employees quit? ›

We've got the facts: The number one reason people quit their job is toxic company culture (62%), closely followed by low salary (59%), poor management (56%), and a lack of healthy work-life balance (49%), according to a Flex Jobs survey.

What are the 5 factors that would make you most likely to quit a job? ›

Poor management, low pay, inflexible work hours and no opportunity for remote work among them. Even so, there are key things you should keep in mind while making your decision. Below, we break down the top reasons employees leave their jobs, as well as examples for how to explain your decision to prospective employers.

What are the main reasons why an employee decides to leave an organization? ›

Here are 17 common reasons why employees decide to leave:
  • Lack of career growth. A crucial and major reason why people quit is the absence of opportunities for advancement. ...
  • Inadequate compensation. ...
  • Poor management. ...
  • Limited work-life balance. ...
  • Toxic work environment. ...
  • Lack of recognition. ...
  • Burnout. ...
  • Lack of challenging work.
Nov 20, 2023

Why do salespeople quit? ›

According to the Sales Happiness Index, “43% of salespeople who want to leave their current job cited a lack of benefits and 31% cited a lack of bonuses. Additionally, 6 in 10 salespeople would be motivated to leave their company for better benefits, while 51% would be motivated to leave for higher pay.”

Why do people not want to work in retail? ›

Typically it's a low income, long hours and if you don't like what you sell life just sucks. Traditional retail stores are closing down all over the world as we speak as more people switch to online markets thus I would not start a career in retail.

What is the real reason so many workers are quitting? ›

No clear career path—This is the top reason employees leave. Nearly one-quarter (24%) don't see future opportunities in the organization. Most employees want to advance their careers and learn new skills.

What is the number 1 reason employees are fired? ›

1- Poor Work Performance

Poor work performance or an inability to do the job at standard is the most common reason for an employee's termination.

What job is quit the most? ›

15 Jobs Americans Quit the Most in 2023 — Including 2 That Pay Over $100K
  • Welder, Cutter, Solderer or Brazer. ...
  • Forklift Operator. ...
  • Program Manager, IT. ...
  • Critical Care Registered Nurse. ...
  • Retail Sales Associate. ...
  • Software Development Engineer. ...
  • Senior Data Analyst. Median pay: $97,100. ...
  • Patient Care Coordinator. Median pay: $46,300.
Jan 3, 2024

How do you determine why employees are leaving? ›

4 Ways to Figure Out Why That Employee Quit
  1. Get the information from them directly. ...
  2. Think back to others who have recently resigned and look for patterns. ...
  3. Ask around your company. ...
  4. Keep track of what a departing worker does next.
Dec 11, 2019

Why do employees stay with or leave the company? ›

Employees are more likely to stay with a company when they are engaged in challenging and meaningful work that aligns with their skills and interests. When employees find their work fulfilling, they are motivated to stay and contribute to the organization's success.

What factors may lead to employees intention to leave? ›

For the purpose of the study, job satisfaction, job stress, person organization fit and organizational commitment were considered as the independent variables while the intention to leave was considered as the dependent variable.

Why are retail stores short staffed? ›

Even though many people want and need jobs, they often look to freelance, remote, or higher-paying positions before they consider retail. Another reason for this employee shortage is that many workers state that retail companies don't put enough effort into improving the workplace.

Why is working retail so stressful? ›

It requires a retail worker's dedication and commitment and generally means long hours, unpredictable and constantly changing schedules, and dealing with the occasional disgruntled customer. It's not uncommon for employees to experience what's commonly referred to as retail burnout.

Why is working in retail so draining? ›

The demanding nature of retail work, which includes irregular hours, weekend and holiday shifts, plus extended periods of standing, can lead to physical and mental exhaustion. Another significant factor is the retail industry's lack of career advancement opportunities, making employees feel stuck and undervalued.

Why do people treat retail staff badly? ›

One of the reasons rude customers go about their antics is because they want to gain special treatment that they do not deserve. A new study by the Journal of Consumer Psychology found that people treat retail workers worse when they're looking for bargains, as opposed to when they're regularly shopping.

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