Employee Turnover in the Retail Industry

Employee Turnover in the Retail Industry

MANG 6476.601

Professor Matthew Dean

Fall 2009

Group 5

Erika

Lauren

Belinda

Laney

Table of Contents

Executive Summary i

Introduction 1

Problem Statement 1

The Nature of the Industry 2

Decision Process 3

Conclusion 5

Work Cited A

Executive Summary

Employee turnover is to be kept at a minimum in the retail industry. High turnover results in inconsistent procedures, variability among staff execution styles, and results in high employee costs for the company. In the retail industry, customers build a relationship with specific employees. The customer comes to expect a certain level of service from this specific employee. A high employee turnover can be costly to the company because of an increase in training costs and change in customer service. Through maintaining low employee turnover, the company will retain “good performing” employees, reduce employee costs, and increase productivity. The retail industry will be able to maintain employees through incentive packages, such as health benefits and vacation days.

(I want to add more to the Executive Summary, but we need to get the Decision process fixed and Conclusion done first)

Introduction

The mid to high-end clothing retail industry is focused on providing exceptional customer service while selling high-priced clothing. Heath Prince, author of “Retention and Advancement in the Retail Industry,” states that retail has long been one of the nation’s most dynamic and innovative industries. The retail industry is defined by customer service and is dependent on the employees to provide the service to the customer. The employee has become the company’s representative to the customer. Companies must maintain certain standards to ensure the quality of service that the customer is receiving. That means that the employees must meet certain criteria and performance standards. The challenge is defining these standards...