In recent years the countries of the Western Balkans region have been facing an exodus
of labour, which represents a complex social problem. Given the fact that the largest
number of employees is engaged in the service industry, especially in the retail sector
where 10% of all working population is employed, it is necessary to define the indicators
which impede employee welfare and to recommend a set of measures for their minimization.
In this regard, this paper aims to identify variables which impact employee welfare
in the retail sector of the Western Balkans with a particular retrospect to the differences
between SMEs and retail chains. Empirical research has been conducted on a sample
of 325 employees of retail companies. Correlation between employee welfare and socio-organizational
variables, such as job contentment, social support, monthly salary, work environment,
promotion opportunity, the use of modern technology, business culture, job rotation
and job security have been tested. The results of the research have shown a significant
correlation between socio-organizational variables and employee welfare. Differences
are especially prominent between SMEs and retail chains. Based on the obtained results,
a set of measures and procedures which competent institutions and employment policymakers
should undertake to neutralize those differences has been proposed. Suggestions for
future research are provided.
