Retail companies experienced a 65 percent turnover rate among hourly employees in 2018, according to Daily Pay.1 Retail distribution positions and corporate positions also had significant rates of turnover. A contributor to Small Business Chron said that some retailers have reported up to a staggering 100 percent rate of staff turnover.2
“Revolving turnover compounds cost, meaning the higher the turnover rate, the more a business's bottom line is impacted. It is critical for employers to get to the bottom of their turnover problems so they can protect their profits,” stated Retail Turnover Rates in 2018.3
Is your company’s bottom line suffering as a result of losing too many employees? If so, you’re not alone. Many retail businesses suffer high employee turnover despite taking measure to increase employee satisfaction and retention. Unfortunately, not every tactic is successful.
To diversify their employee retention techniques, many retail companies are now turning to LMS training programs. When designed well, employee training programs can reduce turnover and improve employee satisfaction.
How an LMS Training Program Minimizes Retail Staff Turnover
An online employee training program delivered with a learning management system (LMS) is a powerful tool for retaining staff. Here are three ways an LMS training program can reduce turnover for your retail company:
1. An LMS training program increases earning potential -- One of the primary reasons retail employees walk away from their jobs is because they simply aren’t earning enough. Upskilling, which an LMS training program promotes, helps retail workers increase their professional value and earning potential.
Learning new skills can increase an employee’s earnings by up to 7 percent, according to USA Today.4 eLearning helps retail workers attain both hard and soft skills, both of which contribute to earnings potential as well as successful tenure at your company.
In addition to upskilling retail staff through online training, company leaders can increase employee retention by offering career pathing and fresh opportunities to employees who want a career in retail, not just a seasonal or transitional job. Giving employees a chance to improve their skills and win a promotion or transfer can be a powerful motivator that keeps employees with your company.
2. An LMS training program promotes effective staffing -- Retail employees often find themselves in understaffed workplaces. “Retailers are understaffing stores – and losing sales,” wrote a contributor to Retail Dive.5 As a result of understaffing, many retail workers are overloaded and have one foot out the door.
An LMS training program designed specifically for retail employees promotes efficient staffing by highlighting gaps in your workforce. For example, if you notice that few of your employees have completed loyalty training, you may need to hire additional staff that can handle volatile issues and help you retain customers, instead of overburdening the staff you already have.
The same concept applies to management and leadership training. Have a manager who’s overloaded? Look for a high-performing employee who’s completed a management course and consider promoting them. You’re upskilling, promoting career growth, increasing earning potential, and creating a more efficient staff - all at the same time.
When leveraged effectively, an LMS training program can not only improve efficiency by helping employees do their jobs effectively, it also helps lighten the workload of individual team members and increase their job satisfaction.
“Firms that invest $1,500 per employee in training compared with those that spend $125 experience an average of 24 percent higher gross profit margins and 218 percent higher revenue per employee.” -- LinkedIn6
3. An LMS training program reduces stress by providing a sense of structure -- Retail positions are demanding. Employees must routinely interact with agitated customers and quickly and creatively solve problems, all the while maintaining a friendly brave face. It’s no wonder so many retail workers call it quits. These individuals benefit from having structure in their jobs and training programs.
Retail positions might be high-stress, but retail training should not be. Keep stress related to training low and give retail employees more structure at work by offering them personalized online learning programs created with LMS learning paths.
Using an LMS learning paths feature, administrators can assemble online employee training programs that deliver eLearning courses and materials in a specific order that is most beneficial to individual employees. This type of training can help retail employees feel a little more organized and in control in what can be a chaotic work environment.
Reduce Turnover by Incorporating an LMS Training Program in Your Employee Retention Program
Does your retail company have a plan for increasing employee retention? Is it effective? If not, incorporating an LMS training program could help you improve results. Online retail training can help your employees cope with a stressful environment and clearly envision growth and learning opportunities in their current positions - all key elements of employee satisfaction and retention.
Get more information on creating effective employee training programs for your retail company here.
1.3. Daily Pay. Retail turnover rates in 2018. https://business.dailypay.com/blog/employee-turnover-rates-in-retail.
2. Small Business Chron. Why do employees leave in retail? https://smallbusiness.chron.com/employees-leave-retail-10180.html.
4. USA Today. 4 ways to increase your salary potential. https://www.usatoday.com/story/money/personalfinance/2014/08/30/wall-st-cheat-sheet-4-ways-to-increase-your-salary-potential/14761891/.
5. Retail Dive. Retailers are understaffing stores -- and losing staff. https://www.retaildive.com/news/retailers-are-understaffing-stores-and-losing-sales/513055/.
6. LinkedIn. Research consistently shows that training employees pays off with profits. https://www.linkedin.com/pulse/20140731043559-8175758-research-consistently-shows-that-training-employees-pays-off-with-profits.