Convenience stores are having a hard time hiring and retaining employees, and most aren’t expecting the problem to improve soon, according to CSP’s survey.
Nearly 97% of Outlook Survey respondents said they struggled to hire people in 2021, and nearly 90% said they struggled to retain current employees this year.
“Having folks that are really committed to coming into work every day has definitely been more of a challenge as a result of COVID than ever before,” says Blackie Wills, president and COO of La Plata, Md.-based The Wills Group/Dash In. “And I don’t think that’s surprising.”
Wills says his stores have significantly increased wages and added signing and retention bonuses. “I hate to use the term ‘hazard pay,’ but there’s a wage premium just knowing there was some additional exposure. Once you increase wages, there’s no reverting back, so that’s here to stay.”
Wills Group is also working to improve corporate communications to store-level associates and recognize employees more, down to the associate level.
Meanwhile, it’s too soon to say whether the end of increased federal unemployment payments will improve the labor pool, Wills says.
“My guess is by early next year, by the beginning of 2022, we’ll have a better feel for that,” Wills says. “But we definitely haven’t seen significant improvement since the expiration of unemployment benefits. It’s still the same challenges today as it was prior to that.”
C-store retailers who responded to the Outlook survey were not optimistic that the labor pool would be improving. While most (41%) said they expect to see some improvement in 2021 compared to 2020, about 35% said it would remain the same and 22% said it would somewhat or greatly worsen.
Here was one retailer’s response when asked “How do you expect your labor pool and hiring issues in 2021 to compare to 2020?”: “I would hope for improvement, but much of that will be determined as aid packages and financial assistance either continues or is removed. Also, as all companies struggle with hiring, it will be interesting to see where we have to go from a pay/benefit aspect to draw them in.”
Like many c-stores, the six-store Pony Express chain has always struggled with employee turnover, says Danielle Gutierrez, senior director of retail operations.
The Winnebago, Neb.-based company, owned by Ho-Chunk Inc., the economic development corporation of the Winnebago Tribe of Nebraska, operates stores in mostly rural areas, which provides a limited hiring pool. With larger chains and quick-service restaurants in nearby Sioux City, Iowa, employee competition is tough.
“It’s almost like a constant battle,” Gutierrez says.
Pony Express has increased wages twice in the past year and a half, as well as increased paid time off, added sick days and tried to be more consistent with scheduling, she says.
COVID and unemployment benefits add to the challenge, however.
“Some people just are not willing to do that,” Gutierrez says of working when there’s a risk of catching the coronavirus. “I don’t blame them, for whatever reason. Especially if you have multiple generations in a household, you have the potential to expose your entire family.
… And then also the increased unemployment benefits. If you can make more money staying home, why are you going to go to work?”
While companies struggle to fill their frontline positions, many corporate employees are returning to work, which is good for retail planning and for store traffic. About 88% of retailers said that if they have reopened their business, about half or more of their corporate employees have returned to the office.