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The Future Of Retail Work: Many See Low Pay, Little Flexibility

Image: Retail storeFor many of the millions of workers who toil in the nation’s shops, malls and supermarkets the changing face of retail isn’t so pretty.

Most retail workers are earning less than they were 35 years ago, after adjusting for inflation, and experts say they are increasingly being asked to accept unpredictable schedules so retailers can get the most work out of them at the lowest cost.

Even though the economy has slowly been improving, many expect those trends to continue because of steep competition to offer lower prices and a continued weak job market for low-wage workers.

“I don’t think there’s going to be any pressure for retailers to offer significantly better wages or benefits than they’re offering now,” said Jack Plunkett, founder of the market research firm Plunkett Research.

The industry also is working feverishly to respond to the growing importance of online retail, but for lower-level workers some say that’s only leading to more lower-paid jobs in fields such as call centers and warehousing.

“I don’t think there’s going to be any pressure for retailers to offer significantly better wages or benefits than they’re offering now.”

“Online doesn’t really change the types of jobs we have in the country. It just changes how you get the goods you bought,” said Lawrence Mishel, president of the left-leaning Economic Policy Institute.

The retail industry says it’s trying to figure out how to staff correctly in such a fast-changing environment. Ellen Davis, senior vice president of the National Retail Federation, the industry’s trade group, said many retailers are working hard to attract highly skilled technology experts who might not realize there is a place for them in retail, while also trying to assess the impact on lower-level workers of things like workforce optimization scheduling systems.

“Technology and the digital experience (are) changing the retail industry incredibly quickly,” Davis said. “You almost have to have a crystal ball to think about how technology will influence the industry in the next 10 to 20 years – and then you have to figure out how to staff around that.”

Workers in a bind

The current state of the industry, combined with the continued weak job market, has left many retail workers in a bind.

Theresa Tate, 30, made $8 an hour working up to 28 hours a week at a chain pet store in Sierra Vista, Arizona.

She said she liked the job but not the financial situation it left her in. “It’s not a long-term goal so much as it is what is keeping my roof over my head,” she said of her job in retail. “I like my job. I like my co-workers. I even like that I leave work every day covered in dog spit, but it’s not what I worked for.”

Tate said most of her paycheck went to rent and electricity. That means that for food and other expenses, she was forced to dip into savings she accumulated previously, when she was working both a full- and a part-time job.

Tate said her schedule changed dramatically week to week and with little notice, making it difficult to find a full-time position. Recently, Tate — who has an associates’ degree and had hoped to become a journalist — landed a full-time position with benefits as an administrative assistant. Tate declined to name the company she works for out of concern it would jeopardize her new job.

Retail workers who don’t have a supervisory role earned an average of $14.02 an hour in 2013, according to calculations of government wage data compiled for NBC News by the Economic Policy Institute. There were 12.9 million such workers in the U.S. in 2013, according to EPI, accounting for nearly 86 percent of all retail workers.

After adjusting for inflation, that’s a 12.2 percent decrease from the average hourly wage those workers earned in 1979.

Over that same period, the overall pool of similar production and nonsupervisory workers — who accounted for nearly 83 percent of all private-sector workers in 2013 — saw hourly wages increase by 6.2 percent, according to EPI’s calculation.

The declines follow a period in which retail wages grew substantially. According to EPI, average wages for those nonsupervisory retail workers increased by 62.7 percent, after adjusting for inflation, between 1947 and 1979.

That was a time when department stores and other retail innovations were coming into vogue, providing relatively good jobs both to men and to the growing number of women coming into the workforce, Plunkett said.

Mishel, of the Economic Policy Institute, said the wage declines that followed are at least partly a result of the dramatic changes that took place after that, when retail became more concentrated among big-box stores competing to get Americans their favorite goods for the lowest price.

“The problem with that thinking is that prices have gone down but the ability for people to earn a living has gone down even more.”

“The problem with that thinking is that prices have gone down but the ability for people to earn a living has gone down even more,” he said.

Part-time work world

Susan Lambert, an associate professor at the University of Chicago’s School of Social Service Administration, said that in trying to minimize costs, retailers have increasingly turned to part-time workers whose hours and schedules can fluctuate dramatically from week to week.

These days, she said, many are relying on workforce optimization technology that might even send workers home mid-shift if foot traffic is slow, or require them to sit at home on call and only come in if there is enough work. These are trends that Lambert said were exacerbated by the recent recession but were building before the economy began to weaken.

Davis, of the National Retail Federation, said many people choose retail work because they want the flexibility to work part-time, but she said scheduling is an issue the trade group needs to look at more closely.

“We need to get a better handle on what’s happening from the scheduling perspective,” she said.

Zeynep Ton, an adjunct associate professor at MIT’s Sloan School of Management and author of the book “The Good Jobs Strategy,” said many retail employers have come to see labor as a commodity rather than an investment.

“I think one reason for the bad jobs in retail is that the philosophy of most retailers is that labor is just a cost, and they should minimize that cost,” she said.

Ton’s book focuses on a small set of companies, including Costco, Trader Joe’s and QuikTrip, who pay workers above-average wages and offer better training and other perks.

Ton argues that this “good jobs strategy” can benefit both workers and their employers, but she said the solution isn’t just to make companies pay people more. The companies she profiled were succeeding because of a number of good management strategies, including the decision to compensate employees better than their competitors.

“They don’t just pay more,” she said. “They don’t just say, ‘OK, we’re going to have happy employees and everything else will work out.’”

 

Sourced from NBCNews.com

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Retail’s Wage Problem Is Rage-Inducing. Woman are still paid less than men

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The retail industry employs millions of U.S. workers, but a new study shows that the industry’s wages are majorly lacking — and that women are still being discriminated against to the tune of billions of dollars. That’s billions with a B, as Oprah would say.

Recent research reveals that the 7.2 million women employed in retail nationwide, mostly as salespeople and cashiers, earn an average of $10.58 per hour. But, male sales associates earn an average of $14.62 an hour — $4.04 more than women who do the the same jobs.

But, that rage-inducing gender gap isn’t the only problem with retail wages. Complicating the issue is the industry’s increased use of “just-in-time” scheduling, which uses software to analyze a store’s real-time customer traffic and schedules employees only if needed — often at the last minute. That means employees’ incomes rise and fall week-to-week, and they’re essentially on hold for their employers, losing opportunities for more lucrative or consistent work.

It’s important to remember that the wage gap doesn’t only affect working women. Anincreasing number of U.S. women are the primary breadwinners for their households, so their children are affected by low wages, too. The study reports that 1.3 million women in the retail industry live in or near poverty. If current trends continue, there will be 1.4billion women living in poverty by 2022 — plus the family members they support.

Of course, industry groups often oppose wage hikes, with the National Retail Federation calling the proposal to raise the federal minimum wage an “anti-job tax” that leads to “fewer opportunities for young and entry-level workers.” But, the study counters that there would actually be benefits to raising retail wages to $25,000 for all full-time workers, men and women. Not only would that narrow the gender gap, it would raise our gross domestic product, leading to the creation of over 100,000 new jobs.

As for the common claim that rising retail wages hurt businesses? Raising employee wages to $25,000 per year would cut into less than 1% of the retail industry’s $4.3 trillion annual sales. And, if companies pass half the costs of a wage increase on to customers, the average household would only pay 15 cents more per shopping trip — that’s a total of $17.73 more a year, the study found. 

We like to think people would be willing to spend $20 per year to lift millions of men, women, and children out of poverty. And, we’d really like to think that the retail industry would consider the tiny dent in their profits a worthwhile investment in their employees’ health, well-being, and living standard. And, let’s not forget, workers are consumers, too. Higher retail wages mean more purchasing power for millions of Americans — and that’s something that benefits everyone’s bottom line

 

Sourced from Refinery29.com

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What Assistant Managers Earn At Walmart, Home Depot And Other Popular Companies

Taking a job at Walmart or Home Depot doesn’t necessarily mean you’ll always be earning an hourly wage.

If you work your way up to assistant manager, you could earn a decent salary, on par with what managers make in some white-collar industries.

Managing is tough, after all. Snagajob.com reports that assistant mangers “have a lot of responsibility and this job requires great leadership skills.”

We reviewed Glassdoor compensation reports — which includes benefits, salaries, and other compensation— for assistant manager positions at major retail and food outlets.

So just how much are people earning? We’ve ranked the salaries from lowest to highest.

 

Assistant managers at GameStop earn $21,810

A former assistant manager said, “If you like games it’s good. Most of store store is friendly and fun. Great for a second job for a day or two a week.”

However, “Corporate is constantly cutting hours making it hard for part time employees to work. This puts a bigger strain on management. The ideas and tasks emailed down are constantly going back and forth and hit with big deadlines with no help its hard to get done. The pay is low, and the stress level is very high.”

Average total pay reports from Glassdoor include salary, bonus, and other factors

 

Assistant managers at Bob Evans earn $34,253

Assistant managers at Bob Evans earn $34,253

Wikimedia Commons

Bob Evans

An assistant manager in Bowling Green, Ky., said the company was “a place to start my restaurant management career. Really good ServeSafe training. It was nice doing some training at the corporate office.”

However, “Local management was promoted by who the Area Manager liked better rather than who actually did their job. The computer system is painfully slow. The uniform standard has gone out of the window now. The entire time that I worked there I never got a raise. My pay was messed up after relocating and recieved a paycheck for 93 cents and only 1/2 pay for the next 10 weeks which ruined me financially. I lost my home and my credit.”

Average total pay reports from Glassdoor include salary, bonus, and other factors

Assistant managers at American Eagle Outfitters earn $35,318

Assistant managers at American Eagle Outfitters earn $35,318

Wikimedia Commons

American Eagle Outfitters

An assistant manager said of the company, “Employee discount would have to be the best. I’m a huge shopper so you have to love that. Health insurance is wonderful. Regional manager is helpful, district manager is friendly.”

However, the “pay is poor for high competing companies. Jim O’Donnell is getting older, so the company’s growth is in question.”

Average total pay reports from Glassdoor include salary, bonus, and other factors

Assistant managers at Walgreens earn $38,170

Assistant managers at Walgreens earn $38,170

An executive assistant store manager said Walgreens employees “meet good people, good pay and you gain a lot of management experience.”

Unfortunately, the job entails “long hours, a lot of physical work, sometimes politics is played, and some managers put you down.”

Average total pay reports from Glassdoor include salary, bonus, and other factors

Assistant managers at Sherwin-Williams earn $38,630

Assistant managers at Sherwin-Williams earn $38,630

Sherwin-Williams.com

Sherwin-Williams

A former assistant manager said the company offers a “Good employee discount. Got to learn hands-on how to run a business. Hours were good. Schedule was flexible. Good pay.”

However, there were “times when store was short-staffed, but only had a minimal budget to hire more part-timers. Upper management had their favorite employees.”

Average total pay reports from Glassdoor include salary, bonus, and other factors

Assistant managers at Panera Bread earn $38,922

Assistant managers at Panera Bread earn $38,922

Wikimedia Commons

Panera Bread

An assistant manager in Silver Spring, Md., said the company offers a “thorough training program, and there are a lot of other cool assistant managers who are fun to work beside.”

However, there are ” WAY too many hours. Crazy early shifts (5am), then late nights all in the same week (leave around 10:30-11pm). GM generally doesn’t work very hard and will put everything on the Assistant Mangers. Senior management in the franchise is a group of good ol’ boys and good luck getting promoted. They promote their buddies.”

Average total pay reports from Glassdoor include salary, bonus, and other factors

Assistant managers at Enterprise Rent-A-Car earn $39,924

Assistant managers at Enterprise Rent-A-Car earn $39,924

Wikimedia Commons

Enterprise Rent-A-Car

An assistant manager said the job comes with “great pay, promote on performance, competitive atmosphere, benefits, bonuses.”

But it has its difficulties. “The customers are sometimes very difficult to deal with under the guidelines of customer service principles enterprise has in place,” the employee said.

Average total pay reports from Glassdoor include salary, bonus, and other factors

Assistant managers at CVS Caremark earn $43,874

Assistant managers at CVS Caremark earn $43,874

Wikimedia Commons

CVS Caremark

A CVS Caremark retail drug store manager said the “compensation package is decent. Training tools are plentiful. They have CVS learnet which gives you detailed modules for every possible training you need.”

However, there are “not enough hours per store to accomplish daily goals. Senior management micromanages every aspect of your store so it doesn’t even feel like your the store manager. LP awareness at the corporate level is blind to every day functions.”

Average total pay reports from Glassdoor include salary, bonus, and other factors

Assistant managers at Walmart earn $45,258

Assistant managers at Walmart earn $45,258

Walmart via Flickr

A current Walmart manager said the company offers “Great culture and environment to work. Walmart provides advancement opportunities for all individuals. I would advise anyone to look at Walmart for career opportunities.”

However, the reputation isn’t always the best. “Some small mom-and-pop stores look at Walmart as a bad giant retailer who steal jobs from other companies,” the manager said.

Average total pay reports from Glassdoor include salary, bonus, and other factors

Assistant managers at Best Buy earn $58,971

A sales manager in Fort Lauderdale, Fla. said of the company, “Fun, fast paced environment. Employees are amazing and we genuinely have fun. It is a relaxed atmosphere but with a sense of urgency at all times to get to customers.”

However, there are “Long, long hours, taking time off is a dirty word. Customers are absolutely terrible. Most customers we have to interact with are flat out rude and feel a sense of entitlement. We sell electronics and we have customers that act like total children when they don’t get their way. I know this is industrywide but I have never seen it this bad in 8 years.”

Average total pay reports from Glassdoor include salary, bonus, and other factors

Assistant managers at Home Depot earn $62,397

Assistant managers at Home Depot earn $62,397

Wikimedia Commons

Home Depot

An assistant manager in Batavia, New York said “money is paid to workers and managers.”

However, “Politics have taken over the company in the last few years to where Frank needs to dig in and get this fixed.”

Average total pay reports from Glassdoor include salary, bonus, and other factors

Data Accurate to November 2011

Sourced from.businessinsider.com/