Labor Retention Strategies for Independent Grocers

Even though the worst of the pandemic is now in the past, certain challenges that arose during that time still linger and affect the grocery industry. Case in point: labor. Although the national unemployment rate remains low, many independent operators face a critical challenge: retaining a stable and motivated workforce.

Changes to the labor force like the rise of the gig economy have pushed many potential employees away from full-time employment, as they favor independent contractors because of their flexibility.

So, how can independent grocers become employers of choice? Coca-Cola Retailing Research Council Research Director Michael Sansolo discussed the Council’s latest study, “Fighting What’s Different Differently: Retention in the Grocery Frontline,” with IGA Retail Learning Institute President & CEO Dr. Paulo Goelzer, Hyer's Katie Krogstad, and TimeForge Labor's Anthony Presley.

Read the discussion recap below for key takeaways.

Understanding the Labor Issue for Independent Grocers

Where have all the people gone?

“Why is it suddenly that everyone is looking for people, and no one can find them?” Sansolo asked as he began to dive deeper into the labor issue regarding independent grocers.

The pandemic changed the grocery industry. Grocers now struggle to compete with other industries, and competition is increasingly coming from internet-based companies who lack physical stores. Moreover, participation in the gig economy, which includes food delivery and ride sharing, has increased while grocery’s retention has dropped.

Because of the wider competition for labor, Sansolo said that independent grocery operators should think about labor differently than in previous years. Operators should understand why employees are coming to them for work — is it for full-time employment or for a side hustle? By understanding employees' needs, operators can recruit associates who will remain loyal for a long time.

Changing the Current Labor Mindset to Recruit and Retain Loyal Employees

“We have to market to our staff the way we market to our shoppers,” Sansolo said, emphasizing the importance of the changing labor market. “It will make them more engaged.”

With employees leaving their jobs to pursue more flexible opportunities, independent grocery operators must modify their methods of attracting and retaining talent.

Like marketing to shoppers, operators should also implement strategies to retain employees. Operators can ask employees about their experiences during onboarding, what they expect of their job, and what they think is expected of them.

These surveys can help grocers build a more loyal workforce as employees are aware of their responsibilities and are reminded of their contribution to the business.

Great Managers Equal Loyal Employees

"People quit their jobs not due to the company itself, but because of poor managers," Goelzer said. "The Coca-Cola Retailing Research Council's study supports this industry truism."

Employees leave their positions when they feel like their managers aren’t treating them well — favoring other employees, leaving them with more work, or not giving subordinates direction. Here, operators can come into the picture by ensuring managers are trained to become better leaders.

As such, independent grocery operators should also mold potential managers to become great ones. “You have to recruit, train, and reward great managers,” Sansolo said. By doing so, it is possible to fix the high employee turnover rate and increase employee retention.

Put Flexibility into Account

“There are workers out there — and there are millions — but they just want to work on their terms,” Krogstad noted as she discussed the gig economy.

Post-pandemic, many in the workforce are seeking jobs that offer and prioritize flexibility. These individuals come from various demographics and include people wanting to earn more money than they earn from their full-time jobs and older people looking for ways to spend their free time.

Independent grocer operators need to realize that the labor market has fundamentally changed after the pandemic. Many people in the workforce today favor more flexible work hours over a fixed schedule.

Similarly, many participants in the gig economy already have a full-time job with benefits but continue to look for more work.

“Side hustles” have become an increasingly popular way to earn more money. Independent grocery operators should accommodate worker’s demands for increased flexibility by adding new scheduling options. Split shifts, shift swaps, flex pay, and gig tasks should all be considered. By accommodating the availability of interested workers, operators can ensure active participation in the gig economy and retain employees in the long run.

Another way of prioritizing flexibility in independent grocers is attracting employees from older demographic groups. Many retirees nowadays look for ways to spend their time meaningfully, such as entering the workforce again. Additionally, Boomer generation employees have lower turnover rates compared to Gen X, Millennials, and Gen Z.

Onboarding Is Key

Many employees in the independent grocery industry are unaware of their roles and responsibilities. Inefficient onboarding processes are to blame.

During the recruitment and onboarding process, operators should remember that employees do not know everything — they shouldn’t be expected to perform tasks like managing inventory, properly cleaning facilities, or serving customers without guidance.

When managers and operators explain the roles and responsibilities in detail to employees, it ensures that employees know exactly what is expected of them to do. The Retail Learning Institute provides online training to over 15,000 stores worldwide with over 300 supermarket-specific courses, ensuring new and veteran employees alike can easily keep up with their training.

In addition, operators and managers should check on their employees after onboarding. For example, talking with employees after 30, 60 or 90 days can help identify whether they have adapted to the job properly. Doing so can help managers and operators identify weaknesses in the employee and transform them into strengths.

In short, clear and effective communication before, during, and after the onboarding process can help operators gain a competitive advantage simply by retaining their employees for a long period of time.

In the dynamic world of independent grocers, operators must adapt to changes, especially in the workforce. By changing your mindset, you can attract talented people and transform them into loyal employees who will contribute to your company's success.