Employee Retention Strategies in the Retail Industry

Employee Retention Strategies in the Retail Industry:
A Case Study of Wayfair Company
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Executive Summary
This study aimed to examine the issue of employee retention in Wayfair company, a furniture and home goods company and offers recommendations to address or curb the problem. The study employed various methods and research approaches to identify the factors leading to higher employee retention rates in the specified retail industry. These factors include low compensation, lack of career advancement opportunities, insufficient development programs and training, and poor job satisfaction. Moreover, the study identified various valuable strategies the company or organization could use to enhance employee retention and prevent turnover. Such systems include offering competitive compensation perks, establishing opportunities within the organization to foster career development, improving the working environment, and promoting development programs and training. Considering the findings, the study offers various recommendations to Wayfair company to improve employee satisfaction, reduce employee turnover, and increase performance.
Outline of the Organization's Problem or Opportunity
The study investigates the problem of increased turnover rates of employees in Wayfair company. According to Exhibit 99.1, Wayfair company has been concerned about many employees leaving the organization, although it is a problem in the retail industry. Substantially, the company faces significant challenges in the retention of its employees, resulting in higher recruitment and training costs, reduced productivity, and poor customer satisfaction (Exhibit 99.1). Certain factors have adversely contributed to escalating the issue, such as poor compensation packages, poor job satisfaction, lack of career advancement opportunities, and inefficient development and training programs. Therefore, workers are leaving the company to seek better opportunities in other companies and thus resulting in continued staff turnover.
Suppose the company fails to address the problem. In that case, it can lead to crucial adverse impacts on the organization, like reduced customer satisfaction, the destruction of the company's reputation, and reduced profits in that financial year. The company has to address the problem promptly by implementing effective strategies to retain employees. Such a strategy should address the issues leading to increased turnover rates in Wayfair company by offering ambient opportunities for career development, enhancing compensation, improving employee satisfaction in the company, enhancing the public company's performance, improving the working environment, offering enough development and training programs, and reducing the rates of turnover.
Summary of the Background and Argument Surrounding the Problem
The retail industry experiences the problem of employee turnover, considering that some cases have an employee turnover rate of more than 60% (Li et al., 2019). Multifaceted and sophisticated factors cause employee turnover in the industry, with environmental, individual, and organizational elements combining to force the issue. The most common factors tha...