2021 was a difficult year for retail as the labor shortage disrupted the U.S. market, putting frontline employees at the forefront of conversations, particularly around how to attract and retain workers.
As the pandemic continues to be a part of our lives and has shifted the way we view work, frontline employees now view schedule ownership and flexibility as highly desirable requirements in 2021 especially since pay alone is no longer considered to be enough in retaining workers. This was clear in our recent study of thousands of U.S. hourly workers and managers that looked into what hourly workers value; when asked the top reason hourly workers quit their jobs aside from pay, 59% said they would leave a job due to lack of schedule empowerment. Employers should keep this at the top of their minds when making decisions as employees will continue to demand benefits that go beyond salary increases.
In addition to schedule empowerment, I predict that keeping labor costs under control while keeping employees happy will continue to be a challenge for retailers in 2022. Companies will need to manage this delicate equation, finding ways to optimize labor while minimizing employee turnover so their businesses can continue to be profitable. This challenge will persist in the new year, with retailers needing to keep a pulse on how to raise the bar on employee experience while still focusing on optimized labor.
Lastly, retailers that embrace the latest technologies will be the ones that thrive. Businesses that leverage these innovations will be able to adapt more quickly, gaining a competitive edge around labor pressure. This will allow them to be a step ahead of their competitors and survive the turmoil.
Sanish is the founder and CEO of Legion, an AI-powered workforce management company redefining how enterprise companies optimize their labor costs and empower frontline workers and their managers. Sanish has more than 20 years of strategic experience in products, technology, and cloud ops. He was Chief Product Officer at SAP and Ariba. In his role at SAP, he was responsible for all Procurement and Business Network products and technology. Sanish holds a Bachelor of Computer Engineering from Pune University and a Masters of Computer Science from Cornell University.
