Retailers in USA say they are still having a tough time finding workers, according to a new Korn Ferry survey. Nearly all (96%) of retailers say they are having trouble finding store employees, and 88% say it’s difficult to find distribution center workers.
“We’re seeing the impact of a retail worker shortage in several ways, including stores scaling back on open hours and customers waiting in long lines to check out,” said Korn Ferry retail expert Craig Rowley. “Organizations need to be creative in finding ways to attract and retain employees.”
One way retailers are working on retention is offering larger salary increases. More than half (57%) are considering merit increases of 3.5% or more, with 36% saying they are considering increases of 4% or more. Merit increases have historically been at 3%.
Further, the majority of retailers (58%) say vaccines are not mandated for corporate jobs, and 72% do not require vaccines for store and distribution center jobs.
Survey results
Are you having trouble hiring store employees?
Yes – significant challenges 19%
Yes – moderate challenges 56%
Yes – minor changes 21%
No – 1%
Other – 3%
Are you having trouble hiring distribution center employees?
Yes, significant challenges – 14%
Yes, moderate challenges – 46%
Yes, minor challenges – 28%
No – 12%
What’s the highest level of merit budget that you are considering?
2.0% – 1%
2.5% – 7%
3.0% – 35%
3.5% – 21%
4.0% – 22%
4.5% – 4%
5.0% – 6%
>5.0% – 4%
For corporate jobs, what is your vaccination requirement?
Vaccine required, and workers will be terminated if they refuse vaccine – 13%
Vaccine or regular testing will be required and workers will be terminated if they refuse – 22%
Vaccines not required – 58%
Other – 7%
For store and distribution center jobs, what is your vaccination requirement?
Vaccine required, and workers will be terminated if they refuse vaccine – 6%
Vaccine or regular testing will be required and workers will be terminated if they refuse – 19%
Vaccines not required – 72%
Other – 3%
Are employees paid for time off to quarantine?
Use PTO (paid time off) – and if no PTO, no pay – 53%
Continue to pay outside PTO – 32%
Continue to pay, but at a reduced rate – 2%
Other – 13%
