"In retail, employees truly are the brand and recruiting and retention efforts should be considered part of the marketing strategy," said Jason Ferrara, vice president of Corporate Marketing for CareerBuilder.com. "To be more competitive and effective in attracting talent, many retailers are enhancing benefits, compensation and career growth opportunities in 2008."
While 60 percent of retail workers say they are satisfied with their job overall, nearly a quarter (23 percent) plan to leave their jobs in less than a year. Forty-two percent of retail workers cite better pay or career advancement as the primary motivator for leaving a job.
FOUR MAJOR RECRUITMENT AND RETENTION STRATEGIES FOR 2008
1. Bigger Paychecks
Continuing an existing trend designed to attract and retain top talent, retail employers plan to offer more lucrative compensation in the coming year.
- Seventy-four percent of retail employers report their companies will increase salaries for existing employees in 2008. Nearly a quarter (23 percent) expect to raise salaries by more than three percent.
- Among those retail employers hiring in 2008, half expect to increase salaries on initial offers to new employees, and eighteen percent will raise these salaries by more than three percent.
2. Career Advancement - Across all industries, over half of workers stated that a company's ability to offer good career advancement opportunities is more important than salary. Employers are taking action to carve out career paths for employees.
- Twenty-eight percent of retail employers are likely to provide more promotions and career advancement opportunities in 2008 given the shortage of workers that some companies are already experiencing.
3. Improved Benefits and Perks - The quality of a company's benefits continues to be an important factor for employees.
- Twenty-one percent of retail employers plan to offer more comprehensive or better health benefits in 2008.
- Forty-five percent of retail employers say they will provide more flexible work arrangements for employees in 2008.
- One-in-ten retail employers say their companies are offering more special perks in 2008.
4. Rehiring Retirees - Nearly one-in-five retail employers (19 percent) report concern over the loss of intellectual capital at their organizations as a large number of workers approach retirement age.
- Twenty-eight percent of retail employers say due to a shortage of qualified workers, they are likely to rehire retirees from other companies in 2008.
- More than one-in-ten (11 percent) plan to provide incentives for workers at or approaching retirement age to stay on with the company longer.
