Retailers Walk a Fine Line on Vaccine

Since the start of the pandemic, political divisions have extended beyond elections and legislation into how stores ensure shoppers' health and safety amid continuing Covid-19 spikes. Wearing or not wearing a mask came to be seen as a statement of ideology rather than as a safety precaution. Even the vaccine itself is not immune to this kind of politicization. Spend a little time on social media platforms, and skepticism about the effectiveness and the potential side effects of the vaccine abound—despite assurances grounded in ample evidence from epidemiologists, credible health care professionals and trusted cultural figures regarding the safety of the vaccines being rolled out. Retailers must, first and foremost, create a safe and healthy environment. The complication of alienating customers—and even employees—who might oppose the vaccine is an unfortunate consequence of the misinformation that's run amok. And it's especially unfortunate for retailers struggling with endless other economic pressures caused by the pandemic. Navigating that territory without losing members of the workforce and vital business requires a particularly clear strategic mindset and the ability to accept some difficult choices. Carrots, not sticks Dollar General and consumer-facing companies like it, including delivery platform Instacart, grocery chain Trader Joe’s and Aldi USA , think they have found an answer: incentivizing, rather than requiring, employees to be vaccinated. Dollar General was the first to make such a move, saying in a statement: “Understanding the vaccination of healthcare personnel and long-term care facility residents is underway, and the CDC currently recommends the next phase of vaccinations be offered to frontline essential workers, we want to be on the forefront of facilitating our employees’ ability to receive the Covid-19 vaccine if they so choose—and we encourage all of our team to receive the vaccine when it’s available." While Instacart, Aldi USA and Trader Joe's will also be compensating employees, they didn't explicitly say whether or not they were requiring workers to be inoculated. Dollar General, Instacart and Trader Joe's did not immediately respond to a request for comment. It remains to be seen whether incentivizing workers will be an effective tactic, not only in convincing employees to get the shot but also to persuade people to shop in their stores. "The more aggressive commitment from Dollar General would be to mandate that all employees get vaccinated," said Hayes Roth, founder of the brand consultancy HA Roth Consulting. "That may be difficult for them to manage, however, given who is likely their predominant employee base (and target audience) so this certainly seems as reasonable alternative step." Competitive risks For national retailers with a large presence in red states and blue states, in rural areas and urban centers, it’s a complicated topic. But, those complications shouldn’t confuse management, says David Lemley, president and head of strategy at Retail Voodoo. “I believe the right thing to do is not make it political and require everyone to get vaccinated," he explained. "Incentivizing provides better optics for employees who may be less inclined to complain if the company pays for it." But not requiring employees to get vaccinated to alleviate shoppers’ concerns also leaves the door open for competitors. "Aside from risking employee health, if given a choice to shop at a store with a sign saying 'All our employees are vaccinated and we continue to practice Covid-safe protocols' versus a store who can’t claim that, seems a no brainer," Roth said. The caveat, he said, is if a company is so deeply politically enfranchised that health and safety versus sacrificing one’s personal "freedoms" demands a different choice. Retail politics The owners of crafts store chain Hobby Lobby, for example, cited their strongly held religious beliefs when they refused to provide access to drugs and devices to their employees that facilitate an abortion. “The major U.S. retailers would be wise to make vaccination for employees a mandate, barring extreme religious or health restrictions, as they stand to benefit most from a return to quasi retail-shopping normalcy,” Roth said. “I would argue the same is especially true for America’s national and regional QSRs—having and advertising a fully vaccinated staff, from kitchen to service to custodial—at all locations would logically be a major selling point early in the 'return to normalcy' period." It may be that merchants simply view a mandate as unenforceable. “They may also just not be in a position to monitor their employees this stringently,” Roth pointed out. Public confidence But the risk to any retailer not requiring compulsory vaccination is multi-pronged, concurred Lemley. He said there is the potential for a "landslide" of worker's compensation claims and other lawsuits from employees who don't get vaccinated and later become infected. As well, there's the risk of losing shoppers if they flock to safer options, and reputation erosion due to the fallout and negativity associated with any illness or deaths associated with exposure in their stores, which is possible with tracking apps. On the other hand, there are concerns about having enough vaccine available for companies to insist their workers be inoculated. President-elect Joe Biden’s pick to head the Centers for Disease Control and Prevention, Dr. Rachelle Walensky, has sought to reassure the public that there will be enough supply to meet targets. Ultimately, for the Dollar Generals and even the smaller retailers of the world, it may be more prudent to initially incentivize employees to get the vaccine and see how they respond. In the end, it leaves open the option to require workers to be inoculated at a later date. And while there are certainly marketing implications, Roth sees the question of how to implement vaccination as more a question for human resources than it is a marketing one. "As with consumers, the first step is to explain to employees why this mandate will be important to them, their fellow employees and families as well as to their customers," he said. "This should literally be 'marketed' internally, and then there should be employee monitors to help facilitate the vaccine distribution internally, not unlike how many already handle the basic flu vaccines."