Why are grocery workers quitting?

The grocery industry in the US is facing a growing retention problem, with workers quitting their roles at unprecedented rates and compounding issues of already understaffed stores and disrupted supply chains. While historically the grocery sector has had relatively high turnover, the problems have only intensified in recent years.

But what is behind this mass exodus, you ask? There are several reasons; burnout, underappreciation, poor compensation and safety concerns driving grocery workers out of the door and seeking employment elsewhere.

Burnout & harsh working conditions

Burnout is one of the major drivers of resignations across the grocery sector. In fact, a staggering 56% of grocery workers cited burnout as a deciding factor in their decision to quit. Long hours, the stress of managing supply chains and physically demanding tasks all contribute to worker exhaustion.

The pandemic only exacerbated these challenges. During the peak of the crisis, grocery staff became frontline workers; expected to keep stock flowing and stores running, despite significant risk to health and wellbeing. Staff shortages, combined with added workload led to increased feelings of stress and exhaustion, particularly in managing heightened customer tension, led to increased burnout. Even in the wake of the pandemic, grocery workers faced pressures to continue working at unsustainable levels; many feeling like they were being asked to do more with less, further fueling physical and emotional fatigue.

Lack of appreciation

Beyond laborious working conditions, many workers have reported a feeling of being undervalued. A 2023 survey found that over 50% of frontline workers planned to resign, citing a lack of appreciation and respect from customers as the key driver.

While praised as essential workers during the pandemic, the wake of the crisis left many workers feeling abandoned; temporary hazard pay quickly disappearing and mass layoffs during economic downturns prior to being rehired on substandard working and financial conditions quickly creating a lingering sense of resentment.

Poor compensation

While often not the driving factor fuelling resignations, substandard wages often remain a major issue with just over 50% of frontline grocery workers citing poor compensation as their reason for quitting.

In spite of the demanding nature of grocery work, compensation across the industry has struggled to keep up with inflation; with many workers finding that they can make significantly more in other entry level positions, such as manufacturing, warehouse or even fast food service. The availability and pay increase of jobs within these industries have made it easier than ever for grocery employees to jump ship in favor of better opportunities.

While some grocery retailers have responded by increasing wages and signing bonuses in an attempt to attract and retain staff, though without addressing the underlying issues of workplace culture and burnout, increased pay does little to halt the mass exodus of workers.

Is the rise of the gig economy harming grocery labor?

Opportunities for better employment are often found outside of traditional grocery/retail jobs. The “gig economy”, with roles in food delivery, ridesharing or remote work, have become an attractive alternative for many unhappy with their grocery work. But why?

Greater flexibility - “Gig work” allows employees the freedom and flexibility to choose their own hours rather than being locked into rigid schedules and taxing shifts.

Reduced customer interaction - Former grocery employees have reported preferring jobs that limit the time spent interacting with difficult in-person customers.

Comparable (sometimes better) pay - Tips and bonuses allow “gig workers” to earn more than they would have in conventional grocery roles.

Similarly, the exponential increase in warehouse and e-commerce roles has created another viable alternative, often offering higher wages and arguably more predictable schedules. 

What is the cost of grocery churn & shift worker recruitment?

Employee turnover costs US companies over $1 trillion per year. Enter your company's metrics to calculate your annual turnover rate:

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What can grocery retailers do to retain workers?

Many grocery retailers are already aware of the crisis and experiment with strategies designed to retain employees and reduce turnover, the most common of which include:

Higher wages/signing bonuses - Grocers are seeing the value in increasing wages to compete with competitors and with other industries. 

Flexible scheduling - Giving employees more control over the hours they work in an attempt to alleviate burnout.

Temporary staffing - Hiring seasonal/temp workers for support during peak to prevent overburdening full time employees.

Improved culture - Businesses who actively show appreciation for their employees, increase communication and maintain a more positive working environment typically see better retention.

Enhanced safety measures - The provision of more robust security measures and policies to protect employees from harassment can do wonders for improving morale and job satisfaction.

Such measures can only take a grocer so far. For employers looking to truly reduce turnover, it’s important to consider long-term cultural changes; ensuring that employees feel valued, fairly compensated and supported. 

The grocery sector is at a pivotal juncture. While increased pay and benefits can certainly help, they won’t solve deeper challenges of burnout, appreciation and security that cause workers to leave in droves. Retailers that prioritize their employees wellbeing, create a supportive working environment and offer meaningful career opportunities will have the best chances of retaining their workforce. Elsewise the cycle of high turnover and labor shortages will continue driving further disruptions for businesses and consumers alike.

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