Los Angeles, Feb. 10, 2022 – Retailers say they are still having a tough time finding workers, according to a new Korn Ferry survey.

Nearly all (96%) of retailers say they are having trouble finding store employees, and 88% say it’s difficult to find distribution center workers.

“We’re seeing the impact of a retail worker shortage in several ways, including stores scaling back on open hours and customers waiting in long lines to check out,” said Korn Ferry retail expert Craig Rowley. “Organizations need to be creative in finding ways to attract and retain employees.”

One way retailers are working on retention is offering larger salary increases. More than half (57%) are considering merit increases of 3.5% or more, with 36% saying they are considering increases of 4% or more. Merit increases have historically been at 3%.

Further, the majority of retailers (58%) say vaccines are not mandated for corporate jobs, and 72% do not require vaccines for store and distribution center jobs.

About the survey

The Korn Ferry survey of more than 100 major U.S. retailers, with annual revenues between $500 million to more than $20 billion, took place in late January 2022.

Survey results

Are you having trouble hiring store employees?

Yes – significant challenges                                                    19%

Yes – moderate challenges                                                     56%

Yes -  minor changes                                                                21%

No                                                                                               1%

Other                                                                                          3%

Are you having trouble hiring distribution center employees?

Yes, significant challenges                                                          14%

Yes, moderate challenges                                                           46%

Yes, minor challenges                                                                 28%

No                                                                                                  12%

What’s the highest level of merit budget that you are considering?

2.0%                                                                                               1%

2.5%                                                                                                7%

3.0%                                                                                               35%

3.5%                                                                                               21%

4.0%                                                                                               22%

4.5%                                                                                                4%

5.0%                                                                                                6%

>5.0%                                                                                              4%

For corporate jobs, what is your vaccination requirement?

Vaccine required, and workers will be terminated if they refuse vaccine    13%

Vaccine or regular testing will be required and workers will be terminated if they refuse    22%

Vaccines not required                                                                    58%

Other                                                                                                7%

For store and distribution center jobs, what is your vaccination requirement?

Vaccine required, and workers will be terminated if they refuse vaccine     6%

Vaccine or regular testing will be required and workers will be terminated if they refuse    19%

Vaccines not required                                                                     72%

Other                                                                                                 3%

Are employees paid for time off to quarantine?

Use PTO – and if no PTO, no pay                                                  53%

Continue to pay outside PTO                                                         32%

Continue to pay, but at a reduced rate                                          2%

Other                                                                                                 13%

About Korn Ferry

Korn Ferry is a global organizational consulting firm. We work with our clients to design optimal organization structures, roles, and responsibilities. We help them hire the right people and advise them on how to reward and motivate their workforce while developing professionals as they navigate and advance their careers.