In the retail world, turnover seems to be rising at an astounding rate as employees have much more to consider than just having a job. With the state of the economy, things that were "perks" are now deal breakers when it comes to sticking it out with a company. Employees now must take almost everything into consideration when deciding to keep their job or to make a change. Daily commutes, employee discounts, benefit packages, corporate stability, and even just a small monetary increase can make or break that decision.
I have started to see some companies take the "pay me now" approach versus the long adopted "reward me later". Some employees are starting to see their long-term rewards and benefits disappear as their company eliminates those benefits to bring back bonus structures, employee allowances/discounts, and even 401k matches. Working for the same employer for more than 5 or even 10 years won't necessarily bring any rewards anymore. When the economy first started deflating retail sales, most companies were quick to eliminate their bonus programs, 401k match, and some even eliminated health benefits altogether. Employees were asked to do more with less and if they remained loyal they were rewarded with not much more than extra paid time off after a determined length of service.
Do you want to work somewhere that has no bonus structure? No 401k match? No health benefits? If you answered yes to any of these....there are a scary amount of companies out there looking for you! If a company can boast a generous discount, full health care, 401k match, and a performance based bonus structure, they not only give a much more attractive package to prospective recruits, but they also portray an image of corporate stability.
Anyone that has been in retail long enough knows that a happy person tells few while an unhappy person tells many. This is where the danger in this approach is. There still are several dedicated people out there that have worked long enough to earn those long-term benefits, and many more that are on the cusp. Unfortunately, because the savings has to be immediate and measurable for the change in structure to remain profitable, "grandfathering" certain employees is not an option. In todays retail climate and tough competition for top talent, I believe this approach may help, but I only hope any company that goes down this road does so knowing that this is not a very long road, and have a more long term plan ready.
I have started to see some companies take the "pay me now" approach versus the long adopted "reward me later". Some employees are starting to see their long-term rewards and benefits disappear as their company eliminates those benefits to bring back bonus structures, employee allowances/discounts, and even 401k matches. Working for the same employer for more than 5 or even 10 years won't necessarily bring any rewards anymore. When the economy first started deflating retail sales, most companies were quick to eliminate their bonus programs, 401k match, and some even eliminated health benefits altogether. Employees were asked to do more with less and if they remained loyal they were rewarded with not much more than extra paid time off after a determined length of service.
Do you want to work somewhere that has no bonus structure? No 401k match? No health benefits? If you answered yes to any of these....there are a scary amount of companies out there looking for you! If a company can boast a generous discount, full health care, 401k match, and a performance based bonus structure, they not only give a much more attractive package to prospective recruits, but they also portray an image of corporate stability.
Anyone that has been in retail long enough knows that a happy person tells few while an unhappy person tells many. This is where the danger in this approach is. There still are several dedicated people out there that have worked long enough to earn those long-term benefits, and many more that are on the cusp. Unfortunately, because the savings has to be immediate and measurable for the change in structure to remain profitable, "grandfathering" certain employees is not an option. In todays retail climate and tough competition for top talent, I believe this approach may help, but I only hope any company that goes down this road does so knowing that this is not a very long road, and have a more long term plan ready.
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