Based on statistics published by smallbusiness.chron.com, employee turnover averages 100 percent in the grocery industry. Cashiers, order fillers and stock clerks have the highest turnover rates, and the cost of replacing just one supermarket cashier is at least $3,637.
But more troubling than the cost, this turnover has a negative impact on the customer experience.
This perspective is consistent with information shared recently on fooddive.com, which states, “Never mind store designs, or prices, or any of the other issues potential competitors have been concerned about: While those issues are all important, so are the ways employees are treated… retaining employees helps to build a cohesive team and a solid shopping experience.”
The article goes on to cite the rapid growth of German grocery chain Lidl, whose accelerated U.S. expansion is making many take notice. The grocery chain’s first 20 stores will open this summer in Virginia, North Carolina and South Carolina.
But along the lines of engaging employees, the chain has a plan to attract and retain the best talent by offering one of the most generous benefits and compensation packages in the industry. “The program is designed to ensure that Lidl U.S. employees are recognized and rewarded for their talents, feel valued for their contributions and are motivated to continue to grow their careers with us,” the article said.
Store associates will receive starting salaries of $12 per hour, plus benefits, according to a Lidl press release. Possibly more important than the robust pay rate is the robust benefits plan, which includes medical, dental and vision insurance with flexible spending accounts, a 401(k) and retirement plan with employer contribution, life insurance, disability insurance, an employee assistance program, paid time off, time off for volunteering, commuter benefits and company sponsored social and fitness events.
Clearly Lidl leadership has a strong appreciation for its workforce and values the concept of employee engagement. If the correlation between employee engagement and customer satisfaction proves true, which we believe it will, it will be interesting to see what happens over the course of 2017, during which time Lidl plans to open 100 U.S. stores.