Retail Staffing: $20/hr is the “New Norm”
Ontario is a few years late, but set to raise minimum wage to $15 an hour in January. Most industries have blown past that low standard by multiple percentage factors already. In fact, the average of every retail job is already $17.68 per hour across Canada. Except, try and hire at that rate. Good luck!
Without $18 to $20/hr as an opening offer, workers simply turn up their nose to job offers. Hence the 1 million (and growing) vacancies, even during the holiday season.
Retail is one of the top wage growth industries in Canada at 4.6% wage growth. Still, personal care services have exceeded wage growth in all areas showing 5% wage gains.
Every industry is paying more than the intended minimum wage raise, rendering it nearly a useless guideline for staffing moving into 2022. Retail vacancies are running around 10% on average, and up to 20% in high demand front line jobs.
Final thought for 2021…retail may as well come to terms with the new reality or endure endless vacancies. Accept that $20/hr is the new norm (at minimum) for Retailers (especially the luxury markets) and budget accordingly.
Stay tuned for more insights in the New Year about all things Retail Staffing. Have a great end of year retail push, and a safe and happy holiday season!