S P E C I A L R E P O RT
Great Expectations During an unprecedented labor shortage, retailers must find innovative ways to attain and retain employees that go above and beyond just offering better pay. By Michele Silver
THE UNITED STATES has weathered a number of “great” historical events. The Great Fire of Chicago (1871), the Great Earthquake in San Francisco (1906), the Great Depression (1929-’32) and, of more recent times, the Great Recession (2007’09). The country is now in the throes of two more: The Great Resignation and the Great Realization, a one-two psychological, Covid-connected phenomenon causing millions of people to leave the work force entirely or look for greener pastures, be it in the form of better pay, benefits, perks, location, flexibility, etc. In short, they have greater expectations when it comes to employment. According to the U.S. Department of Labor, during April, May and June 2021, a total of 11.5 million workers quit their jobs. Voluntary unemployment is happening across all industries, especially retail and restaurants, and there are myriad reasons for it. “The pandemic led to a mass reassessment of priorities on the part of workers,” says Carol Spieckerman, president of Spieckerman Retail, a consulting company. “As businesses shut or slowed down, workers took time to reevaluate.” Many employees realized they saved endless hours of commute time, were able to spend quality time with their families and perform their work responsibilities on a more flexible schedule. “Unemployment benefits and government-issued benefits aren’t causing labor shortages so much as enabling new thinking about risk, benefit and reward,” Spieckerman says. CEO Adam Beck and COO Julia Gomez of Beck’s Shoes, a California-based chain of 15 stores, saw this firsthand. “The world stopped for a few months, and that gave people a moment to pause and take stake of their life and legacy,” Adam Beck says. “People have started to look far more at the satisfaction or gratification that comes out of their
work life.” Beck adds, “Life is just too short to be miserable doing something you don’t either get fulfilment or a huge paycheck from.” If these macro trends aren’t hard enough on retailers trying to find and retain talent, a recent study by Accenture noted a growing pressure from consumers that retailers should treat their employees better. The study found that 49 percent of 120 retail executives surveyed feel increased pressure to provide career growth opportunities for their employees, and 51 percent feel pressure to offer permanent roles to holiday season temp hires. Consumers, in a sense, have store clerks’ backs, and many might prefer to shop in stores that treat their staff well. Mark Jubelirer, president of Reyers in Niles, OH, also blames the government, in part, for the increased difficulty in finding good help. Namely, the extended unemployment benefits have discouraged people from working. “They got paid by the government not to work,” he says. “This, plus the fact that Americans were enjoying their freedom summer was the main drivers of why jobs have gone unfilled.” Jubelirer expects, however, job hunting will pick up leading into this winter. Gary Weiner, owner of Saxon Shoes in Richmond, VA, says it remains “hard to get applicants,” which isn’t primarily due to a fear of catching the virus working in a store setting. He says Saxon Shoes must simply do more to compete for good talent. Aspects like flexible schedules, training, room for advance and a friendly environment are key, because “we cannot match many on wages, signing bonuses, etc.,” he says. PERKS OF BEING A STORE CLERK National chains have been upping their game big-time to woo candidates and retain staff. For example, Walmart, the biggest employer in the world, announced earlier this year that it would cover college costs for its 1.4 million U.S. employees. Amazon also introduced a pay for college policy this
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year for its 750,000 hourly U.S. employees, while Target is doing the same for its full and part-time employees at 40 designated institutions. Target is also paying employees an extra $2 an hour for peak days during this holiday season as an added appreciation and retention strategy for its workforce. The discount chain also cut down on the amount of seasonal holiday hires, instead offering current store employees 5 million more hours, resulting in more than $75 million more in pay. Amid the Great Resignation/Realization, offering a mere employee discount surely won’t cut it. Shoe Carnival, for example, offers full-time workers paid time off for vacation and sick days; an employee assistance program; and medical, dental and vision benefits. DSW’s healthcare benefits are similar, but the chain offers an even more inclusive program that specifically covers the transgender community as well as familyfriendly support such as fertility benefits and paid parental leave. For those (smaller) retailers who find it difficult offering such enticing employment benefits packages, Bob Phibbs, CEO of the Retail Doctor in New York, says there are still ways to compete. “Independents can teach employees how to be an entrepreneur, buying and selling skills, and how to leverage social media,” he says. Still, he notes, better pay is a starting point in today’s uber-competitive climate of attracting qualified candidates. “You’ll have to poach the good ones from other stores and pay more than you ever have,” Phibbs says. In addition to training, room for advancement and treating staffers as family members are other ways to compete beyond better wages. Such is the employment philosophy at Beck’s Shoes, where management is continually on the search for ways to recognize employees and bring them further into the company fold. “The human connection that we strive daily to create with our team is invaluable,” Beck says. “We want them to be a part of something bigger than their one store or department, and know
