1、5 HR Challenges in the Retail IndustryUnlock the Power of Connection In the retail industry,high turnover and low profit margins create fierce competition and significant challenges.On top of the administrative tasks that keep your business running smoothly behind the scenes,youre competing against

2、a growing number of businesses and the gig economy for workers,not to mention juggling schedules as cash flow fluctuates.Youre striving to build a collaborative culture and develop employees with limited budgets and time constraints.And youre navigating compliance and labor laws oftentimes without t

3、he expertise of career HR folks.There never seems to be enough time in the day to manage it all,especially if the team is using an outdated HR and payroll platform or managing processes manually.Historically,you may have had to adapt to what was available in existing HR and payroll platforms,but wit

4、h todays modern technology,you have far more options.Now,you can find complete solutions that fit you and your teams unique needs and objectives not the other way around.To truly meet and exceed your goals,you need access to the right tools and employee data that bring value now and will continue to

5、 do so well into the future.But you also need to be prepared for the challenges ahead and understand how the right HR and payroll technology and service partner will help you overcome them.Time-Consuming Manual TasksDisconnected Business Systems&Processes Competitive Labor Market High Employee Turno

6、ver Company-Wide Communication 2 |800.520.2687|Copyright 2023 Paylocity.All Rights Reserved.2 |800.520.2687|Copyright 2023 Paylocity.All Rights Reserved.Effortlessly manage payroll,taxes,compliance,and more.Its no secret that the retail business is unpredictable.Trends,seasonality,and even day of th

7、e week impact how many customers your team is serving.Schedule changes,shift swapping,and short-notice workforce fluctuations can throw a wrench into your payroll processes,even for the most experienced pros.Add in the manual and error-prone data entry that can impact your tax compliance,and youve l

8、ost the opportunity to focus on big picture things like building up your teams and preparing your business for tomorrow.Challenge#1:Time-Consuming Manual Tasks30%of tasks in most occupations can be automated.(McKinsey)See how convenience store chain Weigels cuts reporting time in half with HR automa

9、tion.I used to have to come in on the weekends to process payroll taxes.I had to manually type them in,and then they were manually reviewed.It was an interesting and long process.”Payroll Administrator,Weigels“1 https:/ |800.520.2687|Copyright 2023 Paylocity.All Rights Reserved.Instead,level up your

10、 payroll processes with employee self-service,custom reporting,and other features that help your business conquer the basics,improve payroll accuracy,make compliance a breeze,and gain insights to power decision making.No dedicated human resources team?No problem.Modern HR and payroll software is use

11、r-friendly and automatically completes tasks,so anyone can use it successfully.Your software provider should also be a partner and resource,supporting your efforts with HR expertise.Research shows 30%of tasks in most occupations can be automated,so staff can focus on more important undertakings like

12、 connecting with customers.Automated payroll functions mean you can easily keep up with last-minute schedule changes and find urgent coverage while supporting overtime,PTO,on-demand pay,and prorated and retroactive pay with minimal disruption to your processes,even when these changes fall in the mid

13、dle of a pay period.4 |800.520.2687|Copyright 2023 Paylocity.All Rights Reserved.Easily track schedules,time,and labor.Manually tracking schedules and labor,just like payroll,is time-consuming and can be costly if there are mistakes.In fact,the IRS estimates that 33%of companies make errors that res

14、ult in billions of dollars in fines annually.And in the retail industry where you have ever-changing staffing needs and temporary workers to consider,the challenge of accuracy is even greater.Challenge#2:Disconnected Business SystemsTracking schedules and time is crucial for several reasons,includin

15、g:Ensuring compliance with labor laws:Retail and wholesale businesses are required to comply with labor laws related to minimum wage,overtime pay,and employee benefits.Managing labor costs:Its easier to control labor costs and make more informed decisions about staffing levels.Improving efficiency:T

16、racking employee schedules,time worked,and labor costs can help organizations identify inefficiencies and make changes to improve productivity.43%of hourly workers surveyed admit to exaggerating the amount of time they work during their shifts.(Software Advice)2 https:/ |800.520.2687|Copyright 2023

17、Paylocity.All Rights Reserved.Stores,supermarkets,and other organizations in the retail industry can leverage automation to streamline their processes.Automating scheduling,attendance,shift change requests,and workforce analytics using a single system helps you maximize efficiency and forecast labor

18、 demand.Time collection software also integrates with business-critical systems like your point-of-sale system,too,so your technology(and time data)stays connected and in sync.In 2023,access on the go is critical,and for employees,mobile access is an expectation.Many organizations enable their emplo

19、yees to clock in/out,request time off,and access their documents using the same technology theyre already familiar with right on their smartphones.Modern time and labor solutions empower you to boost organizational productivity and employee engagement while reducing labor costs,ensuring youre maximi

20、zing your profit margins.6 |800.520.2687|Copyright 2023 Paylocity.All Rights Reserved.Win and keep top talent.The retail industry has historically had high turnover rates,reaching 75%for hourly in-store positions and 85%for part-time workers in 2022.Challenge#3:Competitive Labor Market There are sev

21、eral reasons why retailers may struggle to attract and retain top talent,including:Competition:Retail is a competitive industry,and top candidates may have multiple job offers to choose from.And if onboarding is slow,employees can leave for another offer before even starting with your organization.W

22、ages:The retail industry is known for having relatively low pay compared to other industries,which makes retention especially difficult in areas where the cost of living is high.Low margins also mean organizations cant pay more,and workers might leave for a few more cents an hour elsewhere.Limited o

23、pportunities for growth and development:Many retail jobs are entry-level positions with limited opportunities for advancement,so employees may seek out other opportunities for growth and development.Lack of benefits:Many retailers and wholesalers do not offer employee benefits such as health insuran

24、ce or retirement plans.Research shows only 51%of employers surveyed in 2022 offer health benefits,and many employees are ineligible due to waiting periods or part time worker status.unfilled retail jobs were found in a recent study by the National Retail Foundation.(Fortune)1.1M7 |800.520.2687|Copyr

25、ight 2023 Paylocity.All Rights Reserved.3 https:/ https:/www.kff.org/report-section/ehbs-2022-summary-of-findings/5 https:/ roughly one third of retail workers leave their jobs in pursuit of higher wages,research shows that investing in employees in other ways will help keep top talent.Employee bene

26、fits offerings can range from standard health insurance and paid time off to more flexible perks like on-demand pay and career development opportunities.From recruitment to retention,technology can enhance your processes and make your organization more attractive to employees,both current and future

27、.An on-demand,built-in learning management system(LMS)empowers you to design,assign,and track learning and development opportunities,even on mobile devices.Employees can complete state mandated courses and OSHA safety trainings relevant to their roles,and their progress will automatically be recorde

28、d.Additionally,intuitive tools fast-track your ability to hire and train quality candidates while streamlined onboarding eliminates the endless paperwork,consolidates data,and opens the line of communication with the new hire before their start date.And once employees are on board,youll be alerted i

29、f theyre at risk of turning over so you can be proactive and keep your top talent.Predictive analytics help you spot trends,make better-informed workforce decisions,and stay ahead of the competition.Add to that the ability to quickly verify an employees work eligibility,and youve got an all-around s

30、olution that empowers you to find,hire,and keep the best workers.8 |800.520.2687|Copyright 2023 Paylocity.All Rights Reserved.8 |800.520.2687|Copyright 2023 Paylocity.All Rights Reserved.6 6 https:/ a culture that keeps employees engaged.For todays employees,work is no longer just a punch in and out

31、 commitment.They see work as an extension of themselves and seek employment with organizations that have a strong company culture.This benefits your organization,too.Research shows that employees who are more aligned to their companys mission feel passionate about what they do and have positive emot

32、ions about the company culture are more productive and engaged meaning higher profitability for your organization.It actually doesnt take much to start.Improving communication increases connection,which the modern workforce demands.By keeping employees in the loop with important updates and giving t

33、hem the tools to correspond(even when its not about work),theyll feel more like a team.Modern HR and payroll solutions with integrated,mobile-friendly social collaboration tools help you centralize accurate and timely company info while giving employees the connection they want so they can be more e

34、ngaged,aware,and productive.Challenge#4:High Employee Turnover 65%climb in retail turnover in recent years.(Forbes)9 |800.520.2687|Copyright 2023 Paylocity.All Rights Reserved.7 https:/ this:43%of workers in the retail industry are under age 34.Younger Americans expect access to everything they need

35、 from their phone and are often accustomed to immediate gratification.To meet these demands,you need a solution that feels familiar because it looks like the technology theyre already using.Colleagues can connect around projects,initiatives,and interests,and give each other recognition for contribut

36、ions from anywhere.Plus,its easier than ever to keep your finger on the pulse of your workforce through advanced surveys and analytics that allow you to efficiently(and anonymously)gather feedback and gauge employee sentiment,so you can respond quickly to workforce issues and take steps to improve y

37、our company culture and co-create the organization that you and your employees want.See how retailer Alaska Mill&Feed leverages a social collaboration hub to create employee connections.Our warehouse guys went fishing and got this 77-pound halibut.They posted the picture on Paylocity.It went viral i

38、nternally.Other employees were drawn into the software to post pictures and comment more often.That really helped get our employees to use the system more frequently for other things,too.”Controller,Alaska Mill&Feed“10 |800.520.2687|Copyright 2023 Paylocity.All Rights Reserved.8 https:/www.bls.gov/c

39、ps/cpsaat18b.htmCommunicate with the whole team.In the retail and wholesale industry,keeping everyone on the same page is complicated employees are working different shifts and often at different locations.Many of them dont have access to computers or company email addresses,and theyre on the floor

40、during every shift.And language barriers add another hurdle.9 https:/www.census.gov/library/stories/2020/09/profile-of-the-retail-workforce.htmlChallenge#4:Company-Wide Communication While communication is a key factor in an organizations growth and success,it comes with challenges:Productivity:When

41、 employees arent communicating with each other and with management,there can be lower productivity.Training and development:Providing career development opportunities is difficult when employees work inconsistent schedules or speak another language.Compliance with language discrimination laws:It is

42、illegal to discriminate against employees based on their national origin,which includes their primary language.Employee engagement:Communication barriers can be a hurdle for employees to feel fully engaged in the workplace and to build strong relationships with their coworkers.18%of the retail workf

43、orce is made up of Hispanic+Latino workers.(Census Bureau)11 |800.520.2687|Copyright 2023 Paylocity.All Rights Reserved.Stores,supermarkets,and other organizations in the retail space can leverage multilingual,mobile-enabled HR software to fully engage their employees,no matter when and where theyre

44、 working.HR and payroll software ensures employees have access to the information they need and gives them the freedom to view paychecks,request time off,and stay in touch with fellow coworkers anywhere,anytime,and in a familiar language.Even better,employees manage their contact information and get

45、 24/7 access to current and past checks,tax forms,schedules,and timesheets.And they can view directories,policies,or other resources to keep announcements,company news,and training assignments consistent and current,all without coordinating with HR or administrators.12 |800.520.2687|Copyright 2023 P

46、aylocity.All Rights Reserved.Paylocity is the partner you need to tackle the challenges of today so you can focus on building a stronger tomorrow for your business.Paylocity is the leading HR and payroll platform for the retail industry because it delivers modern features for simplified behind-the-s

47、cenes processes and a top tier employee experience.Whether your retail business is a store,supermarket,wholesaler,or something in between,you can automate manual tasks and minimize compliance risk so you can focus on the strategic work youre passionate about that work that adds the most value to you

48、r organization.From payroll to document management and attendance tracking to scheduling,automation saves you time and plenty of headaches.And Paylocity partners with you every step of the way with HR consulting and tax preparation services available.With continuous improvements to the product and i

49、nvestments that benefit the retail industry specifically,were ready to help make your organization the next hot spot to work.Its our priority to understand your business,where you are and where youre going,so that the solutions you get are just right.Focus on delivering great service to your patrons while Paylocity delivers to your employees.Request a demo to see how.090213 |800.520.2687|Copyright 2023 Paylocity.All Rights Reserved.