A recent report from NACS and the Coca-Cola Retailing Research Council sheds light on the primary reasons why non-managerial convenience store employees left their jobs in 2023. Surprisingly, low pay rates emerged as the leading cause, cited by approximately 49% of former c-store workers, significantly overshadowing concerns about negative work environments and teamwork, which accounted for 23%.
The turnover rates in the convenience store industry have consistently exceeded 100% for over a decade, with a staggering 36% of workers leaving within the first month of employment. This trend underscores the urgent need for operators to effectively communicate the benefits they offer, as the report highlights the role of “inaccurate perceptions of pay” in exacerbating turnover issues.
While wages in the c-store industry have increased by 70% over the past decade, there remains a significant disparity among retailers. For instance, Rutters recently raised its minimum starting wage to $18 per hour, while Buc-ee’s stands out for its competitive pay levels. However, the average pay across the industry hovers around $12 per hour, according to data from Indeed.
Insufficient pay is not only a retention issue but also impacts the ability to attract new talent. Safety concerns and inadequate pay for both hourly and salaried positions rank among the top three reasons prospective employees opt not to work in c-stores.
The report suggests that some retailers may need to reassess their wage structures to retain workers, while others must improve their efforts to publicize their pay rates to attract more applicants. Beyond pay considerations, negative work environments, safety concerns, and long hours contribute significantly to turnover.
Investing in quality managers is highlighted as a crucial strategy for retaining employees, as managers directly influence the employee experience. Recognition and appreciation from managers play a pivotal role in fostering employee satisfaction and loyalty.
Moreover, the report emphasizes the importance of employee training and career development opportunities in enhancing retention rates and cultivating effective store management.
Ultimately, the insights gleaned from industry interviews, focus groups, and a comprehensive survey of over 45,000 adults underscore the imperative for c-store operators to address the multifaceted factors contributing to high turnover rates and prioritize strategies for improving employee satisfaction and retention.
