Retail turnover is expensive. According to the U.S. Bureau of Labor Statistics, the industry faces an average annual turnover rate of nearly 60%, with 22% of attrition happening within the first 30 days and 43% within the first 90 days. That’s a massive operational and financial burden—especially when volume hiring is already a challenge.
The cost of replacing a single hourly retail employee averages nearly $5,000 (or about 16% of the employee’s annual salary), and that doesn’t even factor in lost productivity, reduced customer service, and the strain it places on store managers and coworkers. In a tight labor market, relying on endless cycles of re-hiring isn’t a sustainable strategy.
Retailers need to shift their thinking: high turnover doesn’t have to be inevitable. With the right strategies in place, you can improve retention, reduce hiring costs, and build a more stable, engaged workforce.
Here are five proven strategies to tackle high turnover—starting even before an employment contract is inked.
