COMP NEWS – Retailer Bed Bath & Beyond is struggling to retain workers in the face of hundreds of store closings. To convince employees to stay in the final days of over 400 locations, the company is handing out one-time bonuses to those who stay ranging from $500 to over $2,000.
The retail industry in Virginia faces enormous challenges as chains continue to announce store closures. Major chains are closing their stores across the state as their customers move to online shopping.
Now they are facing another issue- staff quitting before the store closes.
Previously, there was little incentive for staff to remain with their stores until its closing, as Bed Bath & Beyond did not offer any severance payments. Thus, staff has been fleeing for more secure employment.
There has been little incentive for staff to continue to work at one of the stores set to close, as Bed Bath & Beyond is not offering severance payments. Therefore staff in many stores quit before their store’s liquidation process was complete.
To try and combat this move, Bed Bath & Beyond are now offering bonuses for staff who stay with the stores until they officially close for good.
The bonuses are reputed to be:
- $500 for hourly workers
- $1,000 for supervisors
- $1,750 for assistant managers
- $2,250 for store managers
While Bed Bath & Beyond’s bonuses may help retain staff, it remains to be seen if they’re effective enough.
However, it remains to be seen whether these new bonus payments will be enough to incentivize staff to stay or if they will continue to quit to find new jobs.
On Thursday, in a filing to the U.S. Securities Exchange Commission, the business admitted challenges with retaining store personnel posed a material risk to its business. They are also seeking to raise $300 million through an at-the-market share offering and have warned that if the full amount isn’t raised, it “will likely force us to file for bankruptcy protection,”
To read more about Bed Bath & Beyond’s bonus program, click here.
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