Are you involved in the retail or services sector? Have you been hiring lately—especially as the holiday season ramps up? The economy has been improving lately for all sectors of business, including retail. But that means that turnover is increasing too. In fact, in 2012 20 percent of American retail companies experienced growth in turnover. So what does that mean for hiring managers or HR people? Well, you should know that it’s incredibly expensive to replace a worker. It can cost up to $4,291 to replace an hourly worker—that’s equivalent to 3 months of pay for a full-time employee who works at $8 an hour!
The general rates of turnover in America have been growing lately, which means a significant challenge for retail businesses. In 2012, there was a 67 percent rate of turnover for part-time retail employees. That represented a 33 percent increase from 2011. And that’s 22 times as high as executive turnover! That 67 percent is a troubling figure. Think of all the money lost in the American economy as retail businesses spend all kinds of money to replace their hourly workers. So what is the best strategy to avoid the costly effects of retail turnover?
Well, one of the best ways to protect yourself against increased hiring and HR costs is to make sure that you hire the right employees—right from the beginning. Don’t hire hourly employees that take advantage of you, or move on quickly to other jobs. It can be very difficult to sort through all your applicants, especially if you’re hiring for a number of positions at once. That’s why using an Applicant Tracking System (ATS) is so helpful. An ATS can reduce the cost of recruitment by up to 47%! Visit gatherdocs.com to learn more.