Retail Should Mean Better Jobs - A RETAILWIRE PRESENTATION
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A RETAILWIRE PRESENTATION
Retail Should
Mean Better Jobs
George Anderson
Editor-in-Chief/Associate Publisher
RetailWire
About RetailWire
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Retail Should Mean Better Jobs
• Retail is a key driver of the
American economy.
Retail Should Mean Better Jobs
• Retail is a key driver of the
American economy.
• Industry insiders are down
on retail as a career.
Retail Should Mean Better Jobs
• Retail is a key driver of the
American economy.
• Industry insiders are down
on retail as a career.
• Retail can mean better jobs.
The Power of Collective Thinking
George Anderson
Retail Should Mean Better Jobs
According to NRF:
• 24 percent of jobs in America are
directly or indirectly supported by retail.
The industry is the #1 private sector
employer in the country.
Retail Should Mean Better Jobs
According to NRF:
• 24 percent of jobs in America are
directly or indirectly supported by retail.
The industry is the #1 private sector
employer in the country.
• 17 percent of the nation’s income
comes directly or indirectly from retail.
Retail Should Mean Better Jobs
According to NRF:
• 24 percent of jobs in America are
directly or indirectly supported by retail.
The industry is the #1 private sector
employer in the country.
• 17 percent of the nation’s income
comes directly or indirectly from retail.
• Retail connects the economy. Nearly 1/5
of the nation’s gross domestic product
(GDP) is tied to retail.What do you think of retailing as a career?
Generally speaking, would you encourage or discourage a young
family member or friend from pursuing a career in retail?
Strongly discourage 15%
Somewhat discourage 38%
Somewhat encourage 37%
Strongly encourage 10%What do you think of retailing as a career? “Today, workers are strictly variable costs that can be controlled to the minute and staff do not know how much time they will get from day to day.”
What do you think of retailing as a career? “Today, workers are strictly variable costs that can be controlled to the minute and staff do not know how much time they will get from day to day.” “35+ years with 20 of those in the biz directly has taken years off my life. There are easier ways to make a living... e.g., skydiving, alligator wrestling, etc.”
What do you think of retailing as a career? “Today, workers are strictly variable costs that can be controlled to the minute and staff do not know how much time they will get from day to day.” “35+ years with 20 of those in the biz directly has taken years off my life. There are easier ways to make a living... e.g., skydiving, alligator wrestling, etc.” “The industry has changed dramatically only rewarding top management and forgetting about the employees who REALLY make it happen for their respective companies. I have been a retail executive for 40+ years and I am personally very disheartened to see what the industry has turned into.”
What do you think of retailing as a career?
What do you think of retailing as a career?
“The hubris of the
Large Retailer
Accountability Act is
matched by its
hypocrisy.”What do you think of retailing as a career?
Are frontline workers at retail generally paid appropriately relative to
their contribution to the success of most retail operations?
Way underpaid 34.3%
Somewhat underpaid 45.5%
Paid about right 17.2%
Somewhat overpaid 2.0%
Way overpaid 1.0%Are frontline workers at retail generally paid appropriately relative to their contribution to the success of most retail operations? “The compensation structure is broken.”
Are frontline workers at retail generally paid appropriately relative to their contribution to the success of most retail operations? “The compensation structure is broken.” “Frontline is the face of the retailer and yet is often the lowest paid, poorly treated and under trained in the company. They are expected to deliver a great customer experience, yet they receive some of the worst employee experiences imaginable.”
Are frontline workers at retail generally paid appropriately relative to their contribution to the success of most retail operations? “The compensation structure is broken.” “Frontline is the face of the retailer and yet is often the lowest paid, poorly treated and under trained in the company. They are expected to deliver a great customer experience, yet they receive some of the worst employee experiences imaginable.” “Do executives really listen to these workers who are responsible for a chain's success? In most cases, no.”
Are frontline workers at retail generally paid appropriately relative to their contribution to the success of most retail operations? “The compensation structure is broken.” “Frontline is the face of the retailer and yet is often the lowest paid, poorly treated and under trained in the company. They are expected to deliver a great customer experience, yet they receive some of the worst employee experiences imaginable.” “Do executives really listen to these workers who are responsible for a chain's success? In most cases, no.” “Retail employees make or break the company’s reputation. Most top-level executives just can’t seem to fathom this or feel their remuneration will be reduced if more is given to the people that make the company function.”
Are frontline workers at retail generally paid appropriately relative to their contribution to the success of most retail operations? “The compensation structure is broken.” “Frontline is the face of the retailer and yet is often the lowest paid, poorly treated and under trained in the company. They are expected to deliver a great customer experience, yet they receive some of the worst employee experiences imaginable.” “Do executives really listen to these workers who are responsible for a chain's success? In most cases, no.” “Retail employees make or break the company’s reputation. Most top-level executives just can’t seem to fathom this or feel their remuneration will be reduced if more is given to the people that make the company function.” “If you value your employees, and pay them appropriately, you'll notice a difference in the store. Just look at Costco vs. Sam's.”
Top 3 Reasons for Retail Tech Workers to Switch Jobs
Improved quality of life 34%
Better growth potential 51%
Higher base salary 72%
Source: 2013 Salary and Job Market Report by 24 Seven Inc.Are top-level executives at retail generally paid appropriately relative to
their contribution to the success of most retail operations?
Way underpaid 1.0%
Somewhat underpaid 1.0%
Paid about right 27.3%
Somewhat overpaid 42.4%
Way overpaid 28.3%Are top-level executives at retail generally paid appropriately relative to their contribution to the success of most retail operations? “Although talented executives are required to have a successful retail business, no single person is worth what some execs are demanding in compensation. For what we pay one chief we could hire 1000 others to serve our customers. Which is more valuable?”
Are top-level executives at retail generally paid appropriately relative to their contribution to the success of most retail operations? “Although talented executives are required to have a successful retail business, no single person is worth what some execs are demanding in compensation. For what we pay one chief we could hire 1000 others to serve our customers. Which is more valuable?” “There used to be something like a 1:25 ratio of what a front-line employee made relative to an executive. Now that's up to something like 1:hundreds ratio at many companies.”
Are top-level executives at retail generally paid appropriately relative to their contribution to the success of most retail operations? “Although talented executives are required to have a successful retail business, no single person is worth what some execs are demanding in compensation. For what we pay one chief we could hire 1000 others to serve our customers. Which is more valuable?” “There used to be something like a 1:25 ratio of what a front-line employee made relative to an executive. Now that's up to something like 1:hundreds ratio at many companies.” “I recently saw a statistic, which stated that (a top chain’s CEO) makes more in an hour than one of his store employees does in a year. While I cannot verify this exact statement, it's clear enough that the pay discrepancy between executives and workers is a little ridiculous.”
Are top-level executives at retail generally paid appropriately relative to their contribution to the success of most retail operations? “Although talented executives are required to have a successful retail business, no single person is worth what some execs are demanding in compensation. For what we pay one chief we could hire 1000 others to serve our customers. Which is more valuable?” “There used to be something like a 1:25 ratio of what a front-line employee made relative to an executive. Now that's up to something like 1:hundreds ratio at many companies.” “I recently saw a statistic, which stated that (a top chain’s CEO) makes more in an hour than one of his store employees does in a year. While I cannot verify this exact statement, it's clear enough that the pay discrepancy between executives and workers is a little ridiculous.” “Top-level management receives bonus opportunities, stock grants, preferred retirement packages and performance salary incentives that are not available to line executives nor frontline workers.”
What do you think of retailing as a career?
“I’m not judging other
people for what they
do, but at Whole
Foods’ culture it’s 19
times.”
Walter Robb, Co-CEO, Whole Foods MarketPaying Hourly Employees More Will Reduce Jobs
• Stores are chronically
understaffed – OOS
rampantPaying Hourly Employees More Will Reduce Jobs
• Stores are chronically
understaffed – OOS
rampant
• Wharton research of 500
store chains found that
every $1 added in staff
resulted in $4 - $28
increase in salesHigher Wages Mean Higher Prices
•Consumers will not accept
increasesHigher Wages Mean Higher Prices
•Consumers will not accept
increases
•Consumers will go to other
stores should increases be
put throughHigher Wages Do Not Mean High Prices
• Costco, Trader Joe’s, WinCo
FoodsHigher Wages Do Not Mean High Prices
• Costco, Trader Joe’s, WinCo
Foods
• UCal Berkeley Center for Labor
Research and Education –
Walmart analysis
- $12 an hour starting wage
- 46 cents more per
shopping basket
- Price comparison adsHigher Wages Do Not Mean High Prices
• Increase average cashier ($18K per
year) and sales associate ($21K per
year) to $25,000Higher Wages Do Not Mean High Prices
• Increase average cashier ($18K per
year) and sales associate ($21K per
year) to $25,000
• Cost of average shopping trip would
go up 30 centsHigher Wages Do Not Mean High Prices
• Increase average cashier ($18K per
year) and sales associate ($21K per
year) to $25,000
• Cost of average shopping trip would
go up 30 cents
• 100K jobs addedHigher Wages Do Not Mean High Prices
• Increase average cashier ($18K per
year) and sales associate ($21K per
year) to $25,000
• Cost of average shopping trip would
go up 30 cents
• 100K jobs added
• GDP increased $11.8 billion to $15.2
billion“Share repurchases do not contribute to the productivity of the industry or add to economic growth. In 2011, the top 10 largest retailers alone spent $24.8 billion on stock repurchases, billions more than the $20.8 billion all large retailers could have productively invested in their workers.”
“Yes, the planet got destroyed. But for a beautiful moment in time we created a lot of value for shareholders.” Tom Toro The New Yorker
Retail Should Mean Better Jobs
• Emphasis on stakeholdersRetail Should Mean Better Jobs
• Emphasis on stakeholders
• Create greater opportunities for
their full-timersRetail Should Mean Better Jobs
• Emphasis on stakeholders
• Create greater opportunities for
their full-timers
• Reward individual performanceRetail Should Mean Better Jobs
• Emphasis on stakeholders
• Create greater opportunities for
their full-timers
• Reward individual performance
• Develop an objective system for
identifying talentRetail Should Mean Better Jobs
• Emphasis on stakeholders
• Create greater opportunities for
their full-timers
• Reward individual performance
• Develop an objective system for
identifying talent
• Create a path to lifelong learning
and advancementThe Power of Collective Thinking
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