Retail workers have cause to be cranky

A new study supports what millions who have worked in retail already know: The pay is usually lousy, the work schedule often unpredictable and benefits like health care are as rare as an underpaid CEO. 

A survey last fall of 436 nonunion retail workers in New York City -- most employed by big chains -- produced these results:

• The median pay was $9.50 an hour, and that's in a very expensive place to live. "Close to one of five workers earns less than $8 an hour and 80% earn less than $15 an hour," says the study (.pdf file), done by the Retail Action Project and the City University of New York's Murphy Institute.
• According to the report: "Almost 60% of the retail workforce is hired as part time, temporary or holiday, and only 17% of workers surveyed have a set schedule. The vast majority, 70%, only knows their schedules within a week." Imagine the child care nightmares stemming from this national retail trend, known as "just- in-time scheduling." 
• Only 29% have health insurance through their job. Of those who don't, "about 25% live without insurance and 34% rely on government programs." About half get no paid sick days.

(A side note: The New York Times reported in October that Wal-Mart, the nation's largest private employer, "is substantially rolling back coverage for part-time workers and significantly raising premiums for many full-time staff.")

Retail workers in the Bronx were at the bottom in the NYC survey, earning $8 an hour and working just 34 hours a week, says the New York Daily News:

"The result is more poverty among working people," said Ruth Milkman, Murphy Institute sociology professor. "Taxpayers are subsidizing these stores, because the workers depend on food stamps and subsidized housing."

The study was done by a pro-union group, but the results ring true. I worked part time for a major retailer during a period of underemployment several years ago and made $6.50 an hour, then switched to a bigger chain and earned about two bucks more, if memory serves me right. My schedule was different week to week. And just like those workers included in the survey, my co-workers covered a wide age range, and many had families. Post continues below.

Retail didn't used to be that way. A family friend from my childhood supported a wife and two children on what he earned selling sewing machines at Sears. That's unlikely now. 

Why is that? We can blame our addiction to low prices and cheap goods. Also, the study says, "Retailers have calculated that the cost of hiring and training new employees is less than providing benefits to retain a steady workforce -- especially as most employees receive minimal training."

The report's release coincided with the National Retail Federation's annual convention, held in NYC. Blogging after last year's opening session on retailers' plans, Doug Stephens of Retail Prophet wrote: "What was conspicuous by its absence however was any meaningful mention of the value or importance of the retail employee in actually delivering or supporting this experience."

Maybe big retailers would benefit from treating employees with more consideration. They'd likely be happier on the job. Referring to another study, the blog at Human Resource Executive Online said:

By comparison, the researchers discovered that the more hours employees at the apparel chain worked and the less their hours fluctuated, the longer they remained employed at the firm, regardless of age and job status. Stores with smaller staff size and more hours per employee have lower turnover and higher retention, the report found, while employee survey findings indicate that more-predictable work schedules led to less work/family conflict and lower stress levels for the workers. Sounds like a recipe for improved workforce health and greater productivity, no?

About 4.5 million people worked in retail in the U.S. in 2008. "In addition, given the size of this occupation, about 374,700 new retail salesperson jobs will arise over the (next) decade -- more jobs than will be generated in almost any other occupation," the Bureau of Labor Statistics says: 

And turnover will also continue, the BLS projects:

Employment opportunities for retail salespersons are expected to be good because of the need to replace the large number of workers who transfer to other occupations or leave the labor force each year.

Have you worked in retail? Tell us about your experience below.

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