Through a special arrangement, presented here for discussion is a summary of a current article from the Retail Doc blog.
A CAP study found it costs on average $3,328 to find, hire and train a replacement for a $10/hour retail employee. Hay Group reported a median turnover rate of 67 percent for part-time retail employees.
And while many businesses are adopting impersonal online application processes and pre-employment skill tests, they seem to do nothing to work on why their turnover is so high.
Here are eight reasons why your retail employee turnover is so high.
8. Only management incentives. Find a way to include everyone somehow — not just on a sales goal, but in keeping the "attaboy" attitude — so everyone feels good about the job they do for you.
7. Antiquated policies or procedures. No refunds, no exchanges, everyone works every weekend — all these stupid policies cause friction for good employees ... and your customers.
6. Minimal training. Having previous experience doesn't mean an employee will understand what makes your store different. Tell them explicitly what you are trying to do with your customers.
5. Employees thrown into the job. Millennial employees don't have the skillset to pro-actively acquaint themselves with other employees. An ongoing effort is required to bring people together.
4. Employees encouraged to do, not think. The younger workforce has an innate positive outlook. Forced to stock those shelves, price that merchandise, etc., gives them plenty of time to say how much their job sucks.
3. Every day becomes the same. Many times we look at an employee as too valuable where they are. Mix it up for employees who have been with you for awhile; give them new duties, training, responsibilities, etc.
2. The wrong people get hired. You need to see if a candidate is able to talk to people, not just say they can.
1. Promoting task-oriented employees to supervisors. Promoting someone because they get things done isn't the only criteria. Employees quit managers, not brands. A certain type of employee will tolerate managers with poor interpersonal skills, but the best employees will move on quickly. A manager's main job is to develop a crew who feels it is their store, and not leave them feeling like a cog in a wheel.
Which suggestion for reducing employee turnover is most often overlooked?