They’re quitting: a festive season retail headache
retail industry is at 40%—that’s 10% more than last year. Front line roles include employees on shop floors, in store sales, and those who are part of brand promotion teams. Are retail companies to blame for the crisis? In some ways.
After two years of covid-induced lockdowns and offline retail shutdowns, there was a surge in hiring but that stopped when companies realized that they had overspent on counter-offers and negotiations. They let go of employees. According to Kartik Narayan, CEO at staffing firm TeamLease, unseasonal rains in the initial months of 2023-24 impacted AC sales and, in the process, hiring.
The hiring also dropped in quick-commerce, including delivery and logistics staff. The funding winter also resulted in a hiring freeze. These firms are now finding it tough to hire back workers.
Where are retail employees headed? One cohort still hiring from the retail sector is banking, financial services, and insurance (BFSI). Demand for insurance, credit cards, and mutual funds is robust and selling these services requires a large workforce. Experts say demand for sales and marketing roles in BFSI has surged by about 30%.
Front line workers from the retail sector have proved to be a good fit. Is talent exiting across levels? Yes. Apart from front line workers, junior and mid-level management in retail is seeing high attrition.
Narayan of TeamLease said about 200,000 jobs are open in retail staffing but getting the candidates is proving to be difficult. Lateral hires are tough since many are unwilling to leave their jobs and join a sector that is volatile—retail has swung from boom to frugal hiring. However, senior talent hasn’t changed loyalties.
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