Reversing the Retail Worker Drop-Off

The retail industry is an integral part of the U.S. economy, providing jobs for 52 million people across the country, more than any other industry. Frontline retail workers are the glue that holds businesses together. Yet, the challenges they face often go unaddressed, especially given their growing list of responsibilities, made even longer by the omnichannel boom. Following the end of the pandemic, retailers are continuing to enhance their e-commerce offerings. This is combined with a rebound in foot traffic and the introduction of new, blended digital-physical offerings. Succeeding in these initiatives largely hinges on the performance and dedication of frontline workers.

The sector is also dealing with significant difficulties, such as increased competition, labor shortages, and reduced consumer spending. For retail leaders, weathering this economic storm will depend on finding new ways to keep their businesses thriving while still supporting their indispensable frontline workers. However, it’s a tricky balance to strike. After all, no retailer wants to compromise on either customer experience or its wider business goals.

Challenges Faced by Retail Workers

We’re already seeing the negative impact that the current retail landscape is having on employee morale. High levels of stress and exhaustion lead to decreased job satisfaction and productivity. And they can impact the bottom line, too. With growing workloads, retail workers have limited time for customer engagement. Instead, their hours are taken up by tedious (but essential) store operations, such as stock-taking, product placement, and checkout, leaving them with little time to answer customers’ questions and guide them to the right purchase. In short, customers don’t receive the personalized attention and assistance they expect when shopping in stores.

Therefore, it’s no surprise that finding and retaining experienced frontline retail workers is becoming increasingly challenging. The retail industry has a high turnover rate, with over half of frontline workers considering quitting. Although we might assume that money is the driving factor here, compensation ranks fourth on U.S. retail workers’ list of priorities. Flexibility is No. 1, followed by career development and health, and lastly, meaningful work.

These high turnover rates disrupt operations, increase recruitment costs, and negatively impact service quality. Therefore, it's imperative for retail leaders to implement initiatives that support and incentivize frontline workers to commit long term to the business.

Solutions for Retailers

As retailers seek to build resilience, automation should be a crucial weapon in their armory. When retail leaders provide employees with the technology they need to excel, it reduces the time spent on mundane tasks and enables them to focus more on value-add activities like improving customer experience.

Smart data capture technology is one solution that can help improve workflows, increase productivity, and empower retail workers. Upgrading scanning devices with smart data capture capabilities allows workers to collect real-time data from a multitude of sources — including barcodes, text, IDs and objects — and proceed with actionable insights to make fast, accurate and informed decisions while reducing the chance for human error.

For example, smart data capture-enabled devices automate and streamline store operations by eliminating the need for employees to manually input data across various platforms. Additionally, leading providers of smart data capture offer the ability to scan multiple items at once, meaning repetitive and time-consuming responsibilities like stock-taking are streamlined for frontline workers. All of this can be performed on smartphones, so retailers no longer need to rely on outdated, purpose-built tablets and scanners.

The result? Retail employees feel more supported and valued, while also having more time and energy to prioritize customers again.

Don’t Wait to Create a Better Workplace

Retail leaders must prioritize frontline workers if they want to maintain a competitive edge. This means providing them with the tools and resources they need to do their jobs effectively, while also taking into account their well-being and job satisfaction. Striking a balance between strategic goals and the day-to-day needs of workers is crucial, and technology will be a key factor in achieving this. Innovations like smart data capture technology can automate tasks, improve efficiency and productivity, and allow employees to focus on more engaging and meaningful interactions with customers — a no-brainer for retailers.

Jessica Grisolia is head of retail industry solutions at Scandit, the leader in smart data capture.