The US retail industry is experiencing significant changes in compensation, hiring and workplace trends, according to a new survey by Korn Ferry (NYSE: KFY).

The survey found that the median start rate for store workers has risen to $12 an hour in 2023 from $10 an hour in 2019. Furthermore, nearly 29% of retailers reported a national minimum start rate of $15 an hour for 2023.

Despite the increased pay rates, 82% of retailers are struggling to hire store employees.

The survey also found 81% of retailers plan to maintain their current corporate hybrid workplace model implemented due to the pandemic. However, 24% of retailers expect corporate employees to be in the office twice a week, while 39% expect a three-day workweek in the office.

“Retailers need to continually work to make their company an employer of choice by offering flexibility, the ability for advancement, and of course a competitive wage,” Korn Ferry senior client partner and retail expert Craig Rowley said.

The survey includes responses from 100 major US retailers with annual revenues ranging between $500 million to more than $20 billion. It took place in late March 2023.