The Organizational and Social Complexities of Managing and Retaining Generation Z Employees in the United States Retail Industry

Problem Statement

Today’s retail managers must deal with high employee turnover rates while aiming to deliver quality customer service, reduce inventory shrinkage, and increase profit margin (Walton, 2018; Sands-Dawling, 2020). While employee turnover statistics fluctuate from industry to industry, retail store employee turnover remains the highest amongst all sectors (Walton, 2018; Sands-Dawling, 2020). Tang, Liu, Oh, and Weitz (2014) assert that the retail industry employee turnover rate is 60% for full-time employees. The average retail store in the United States loses $190,000 annually due to employee turnover (Harrison & Gordon, 2014). According to Walton (2018) and Sands-Dawling (2020), it takes considerable time and money within retail establishments to attract, interview, vet, and hire prospective employees. Generation Z represents people born in the 1990s and represents one-third of the U.S. population, a significant potential workforce (Fuscaldo, 2020). For the retail industry to flourish, organizational leaders need to hire, develop, and retain Generation Z employees. The problem is that employee retention issues affect a Generation Z employee’s intentions to remain with an organization, and leaders lack the know-how to influence retain and properly manage these employees. This study is important because there are a limited number of studies on Generation Z workers in the retail industry in the United States.