Employee Retention Strategies at Wayfair Company

Literature Review of Employee Retention Strategies:
A Case Study of Wayfair Company
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Contents Section IV: Literature Review.. 3 Introduction. 3 Wayfair Background Information. 3 Overview of the Employee Retention Problem in the Retail Industry. 3 Research Question. 4 Theoretical Framework. 4 The Significance of Employee Retention in the Retail Industry. 4 Motivational Theories about Employee Retention. 4 The Role of Organizational Culture in Employee Retention. 5 Employee Retention Strategies in the Retail Industry. 6 Development and Training Programs. 6 Employee Engagement Programs. 6 Compensation and Benefits Packages. 7 Work-life Balance Programs. 7 A Case Study of Wayfair Company. 7 Overview of Wayfair's Retention Strategies. 7 Analysis of Wayfair's Retention Strategies Effectiveness. 8 Wayfair Challenges in Employee Retention. 9 Recommendations for Wayfair and the Retail Industry. 10 Significance of Incorporating Employee Feedback. 10 Leadership Role in Employee Retention. 10 Incorporating Technology to Improve Employee Engagement 11 Conclusion. 11 Recap of the significance of employee retention in the retail industry. 11 Summary of Key Findings. 11 Future Research Directions. 12  Section IV: Literature Review
Introduction
Wayfair Background Information
Wayfair is one of the leading American e-commerce retailers which majorly deals with home goods and furniture. The company was founded in 2002 and has grown immensely to be one of the giant icons in the e-commerce and retail industries in the United States of America (Wayfair Home, n.d.). The company has more than 16 million products in its catalog, recording at least $9 billion in revenue annually (Wayfair Home, n.d.). Notably, Wayfair Home (n.d.) notes that the company boasts a workforce of more than 16,000 workers. Most of these employees work in warehouse operations and customer service. Arguably, the innovative approach to e-commerce retailing is a significant force that drives the company to success and focuses on offering customers an enjoyable and seamless shopping experience.
Overview of the Employee Retention Problem in the Retail Industry
Employee retention has long been a pertinent issue in the retail industry. Increased employee turnover rates significantly threaten a firm’s bottom line since the cost of recruiting and induction of new workers escalates (Kumar, 2020). Moreover, high employee turnover rates result in reduced productivity, poor customer satisfaction, and decreased morale. According to Kumar (2020), research by the National Retail Federation shows that the average retail employee turnover rates revolve around 60%, notably higher than the national average of 40%. The entire industry faces a significant problem of employee retention because most retail companies have low compensation rates and demand longer working hours, most depending on a similar workforce pool (Singh, 2019). Retail companies must develop ways of differentiating their brands from competitors and establish an environment where workers feel motivated and valued.
Researc...