The shifting business landscape of today’s retail organizations is increasing the pressure on human resources professionals. As more customers flock to online shopping, in-store revenues are declining, forcing executives to re-evaluate and streamline store operations. The retail industry currently employs over 15 million individuals of whom approximately 53% are part-time store workers and 8% are first-line supervisors (Source: US Bureau of Labor Statistics).
Hidden costs of turnover: Employee turnover within retail stores can be detrimental to a company. According to a recent study by Hay Group, turnover for part-time store workers is increasing and reached 67% in 2012, a 33% increase over 2011. Not only are there substantial costs associated with the recruiting of candidates and training of new hires, but absent or inexperienced employees can have a major impact on customer service and employee morale. This in turn can affect store sales and the bottom line. A study from the Coca-Cola Retailing Research Council estimated that turnover for an $8/hour part-time worker costs $3,752 per worker.
Recruitment and retention within the retail industry is a costly and difficult problem and many organizations are striving to find new solutions. Several retailers are now relying on Recruitment Services to manage this process, specifically for their fluctuating or high-volume recruitment needs in stores.
There are several factors to consider when determining if this is the right solution for your company.
- Fluctuations in hiring demand – Can your internal recruiting team achieve the hiring demands of your seasonal needs and store growth?
- Lack of visibility & metrics – Do you have the capability to analyze metrics to make informed decisions and set your strategy?
- High costs associated with hiring, training and turnover – Do you know all the costs associated with recruitment, training and turnover and what the impact is on your customer service and your bottom line?
- Inconsistent process – Have you developed a process to create efficiencies in your hiring operations and lower your costs?
- New hire quality – Is the level of quality within new hires affecting your customer service and employee morale?
If you answered “No” to any of these questions, Recruitment Services might be a good option for your organization. You can overcome hiring challenges and attract and retain the right employees for your organization.
IBM’s Recruitment Services help retailers address hiring and workforce challenges in the following ways:
Whether you are looking for an end-to-end recruitment solution or services to address specific needs, IBM’s scalable recruitment services help retailers drive business outcomes. Examples of our customer successes include:
- Reduced employee turnover by 50%
- Reduced time-to-fill by 35%
- Improved hiring manager satisfaction by 93%
- Increased interview to hire ratio by 40%
- Reduced cost per hire by 52%
For more information on our Recruitment Services or other areas of HR to help you build a Smarter Workforce, meet Jennifer Aglira Welsh at NRF 2015 and set-up an appointment. You can call Jennifer at 610-457-9049 or write to her at email@example.com