Best Buy’s Workforce Investments Show How Building Quality Jobs Drives Employee and Organizational Success

The retail sector represents a vital sector of the U.S. economy, providing essential employment opportunities to over 55 million Americans, or roughly 26% of all employment in the country. And yet, despite its significant role, the retail sector often struggles with job quality. Too many retail jobs are part-time, low-wage positions with limited benefits, unpredictable schedules, and minimal opportunities for career advancement and professional development, leading to high turnover and low employee satisfaction. In 2023, research showed that 44% of retail workers contemplated leaving their jobs within the next three to six months, citing inadequate growth opportunities, mobility, or coaching as the top reasons for potential turnover – outweighing (though closely followed by) concerns about compensation and benefits. 

JUST Capital’s annual Americans’ Views on Business Survey, our longest running longitudinal survey of a representative sample of 3,000 Americans, highlighted broad agreement among respondents (92%) that retaining and promoting workers from within is an important business behavior. However, just over half (58%) of respondents felt that companies are performing well in this area.  

As retail jobs increasingly shift from temporary job opportunities to long-term career options or serve as a vital career launchpad for many, employers must prioritize creating quality jobs that meet workers’ needs, attract and retain top talent, and provide clear pathways for advancement and development. In a sector where high turnover rates and entry-level positions are common, investing in employee development is key to fostering long-term engagement and retention. Within retail’s highly competitive industry environment, engaged, experienced employees can drive operational success and create value. What’s more, engaged employees attract customers, both by creating a better customer experience and by demonstrating the company’s values to customers who prefer businesses that invest in their people. 

So which retailers are leading the way in providing opportunities for their employees? JUST Capital’s JUST Jobs Scorecard and The Schultz Family Foundation’s American Opportunity Index (AOI) assess company performance on job quality by tracking the policy investments that companies make and the outcomes of these investments for their employees. Among the hundreds of companies analyzed in both tools, Best Buy (BBY) stood out for its strong focus on professional development and career advancement opportunities for its workers. 

Best Buy’s leading practices include:

• Tuition reimbursement for graduate and undergraduate education after just six months of employment
• 44 hours of training per employee, well above the industry average of 17 hours
• Paid internship programs to support young professionals entering the workforce for the first time
• Partnership with The Mom Project in FY23 to support mothers as they re-enter the workforce 
• AI-driven training program to keep employees competitive and prepared in an evolving job market 

Best Buy’s workforce development focus emphasizes the critical role that job quality and continuous career growth opportunities play in the retail industry. Best Buy’s strong performance on the Training and Development topic in JUST Capital’s 2024 JUST Jobs Scorecard underscores its commitment to creating meaningful career opportunities, which are especially important in retail where employees often face limited advancement prospects. This dedication is further validated by the company’s performance on the American Opportunity Index (AOI), where Best Buy is recognized as one of the leading retail companies in driving economic mobility and positive career outcomes for its employees. 

Through its tuition reimbursement program, Best Buy provides financial support for undergraduate and graduate coursework to full-time employees after six months of employment. This initiative helps make higher education more attainable and promotes ongoing education and skill development within the company. Additionally, Best Buy invests in on-the-job career development, providing an average of 44 hours of training per employee. That’s well above the current research-backed leading practice of 30 hours, and the retail industry average of 17 hours. Such strategic investments in the workforce have been linked to enhanced productivity and higher employee retention, benefiting both employees and the organization. In fact, Best Buy’s retention rate of 66% for 2023 exceeded the industry average of 59% for retail companies assessed by JUST Capital, exemplifying how investing in workers pays off in the long run. 

In addition to its educational support, Best Buy is enhancing real-world industry experience through paid internship programs. In FY23, the company welcomed over 200 paid summer interns from high school, college, and graduate programs, offering opportunities for students from more than 75 universities across 26 states. Best Buy also invests in supporting individuals looking to re-enter the job market. In FY23, its partnership with The Mom Project underscored its commitment to recruiting skilled and diverse talent, including mothers seeking to return to work. Through these initiatives, Best Buy not only sets a high standard in training and development among its peers but also strengthens its dedication to inclusivity and diversity in hiring practices, which JUST Capital’s polling indicates is important to American consumers.

Looking ahead, Best Buy is positioning itself at the forefront of workplace innovation by implementing an advanced AI-driven program, designed to anticipate future workforce needs and chart new learning and career pathways for employees. Although earlier this year layoffs accompanied the company’s investment in AI to enhance customer support, the use of AI now may be helping employees adapt to the evolving workplace. As AI continues to reshape job roles and skill requirements across industries, proactive company approaches like Best Buy’s help support employees in remaining competitive and well-prepared for an evolving job market. 

Best Buy’s investments in workforce development support professional growth and mobility while expanding opportunities for individuals at various stages of their careers. This approach demonstrates the importance of investing in employees to drive long-term success, showing how effective job quality strategies can enhance retention and contribute to both employee and organizational success. 

The policies that emerge from Best Buy’s workforce investment priorities can be tracked through our JUST Jobs Scorecard, and the policies’ positive impact on Best Buy’s employees can be explored through Best Buy’s performance on the American Opportunity Index.

To learn how we’re engaging on job quality issues, unpack your company’s performance on the JUST Jobs Scorecard, or join a corporate community of practice focused on peer learning and expert feedback on workforce well-being, please reach out to corpengage@justcapital.com.