Social media these days are filled with commentary and complaints, particularly by younger generational cohorts, regarding the arguably outdated structures that define work and working and employment. Such content has introduced several new phrases into the cultural lexicon, including quiet quitting, which refers to a type of passive resistance by workers, in which they purposefully perform only the minimum requirements of their jobs, take all their available vacation time, and exhibit no loyalty to the employer.

But quiet quitting is something of a misnomer, in that the employees remain employed. They might put in the minimum effort, but they continue to do their jobs. Another, parallel trend goes further, especially in retail settings: Retail workers are exhibiting some of the highest turnover rates in history. Efforts to understand why they are quitting—loudly sometimes—reveal that the key drivers are the insufficient benefits and poor working conditions that retail workers all too often face. A deeper dive reveals that many retail employees struggle to keep pace with the dramatically increasing cost of living, without experiencing sufficient increases in their salaries offered. They also report poor management practices and a lack of oversight.

Whether the problem is quiet or loud quitting, the solutions are largely the same: Strategic interventions by human resource departments should seek to identify precisely what workers need to be happy at work. Likely demands will include increasing hourly salaries and improving employee benefits, such as comprehensive health care and retirement plans. Furthermore, investments in safety measures, such as ergonomic workstations, can create more desirable work environments.

Retailers who resist such ideas often cite budget concerns as a constraint, and ongoing and vigorous debates about whether to raise minimum wages reflect such arguments. But these claims appear increasingly unconvincing. Some worker-oriented initiatives, such as manager training programs or fostering a culture of open communication, cost retailers very little but can have substantial benefits for improving workers’ views of their employer. Furthermore, budget-based arguments reflect a short-term perspective. Paying good employees more today, to ensure their retention and dedication, can lead to substantial long-term benefits for the firm, including better workplace stability. Happy employees who can afford to support themselves and their families with their wages are more likely to feel dedicated to their employer and their work, such that they display improved performance in ways that appeal to customers and improve the firm’s bottom line.

Discussion Questions

1. Which employee benefits seem most likely to be effective in retaining the retail labor force? Can you think of any other benefits that retail employers should offer?
2. Are traditional employment relationships worth maintaining? Or should temporary, or gig, jobs be embraced?

Sources: David Fuller, Bryan Logan, Pollo Suarez, and Aneliya Valkova, “How Retailers Can Attract and Retain Frontline Talent Amid the Great Attrition,” McKinsey & Company, August 17, 2022; Marianne Wilson, “Study Reveals Why Retail Employees Don’t Stay on the Job Very Long,” Chain Store Age, August 30, 2023; OpenAI ChatGPT, “Assistance with Research on High Turnover Rates in Retail,” ChatGPT, April 22, 2024; “Why Retail Turnover Rates are So High and How to Improve Them,” Zipline, July 30, 2022.