Responding to high employee turnover is a major headache for businesses. New additions must be trained and go through a grace period before they officially have their bearings. An alarming 58.19% of retail employees are leaving their positions within the first year (Equifax). Companies are losing time and money by allocating costs and resources to new employees. Finding ways to hire and retain the right employees is important to balance costs associated with a brick and motor free standing sites, as online sites continue to “borrow” potential customers.
When a company finds a perfect fit in their hiring process, it sees dividends paid out across multiple business areas. A better employee is more efficient and productive, resulting in increased output. As time goes on, the employee gains job specific skills, and refines his or her sales processes, further increasing efficiency. These “veterans” will also continue to add value as they help train and act as a model for new hires.
Creating a list of qualities and skills for an ideal candidate can help as a baseline for the hiring process. When reviewing candidates, a company can implement a process that is streamlined to limit the time needed to select candidates. Companies are leveraging their ERP systems designed specifically for retail. Candidates can now fill out application, and based on algorithms, be dropped into an approval pool for an HR personnel to review and bring in for an interview. The system logs the candidate’s information in a unique ID as it moves throughout the hiring process. By doing this, retailers are able to collect and analyze data on employees that have been hired and terminated along with reasons for those actions. Looking back on data related to an employee or applicant can help companies gain insight and focus on specific qualities which have led to successful employees with longer retention, and adjust their internal processes ad expectations, accordingly.
Employees of retail stores tend to leave due to an agency discrepancy between management goals or incentives and their own. Organizations can create performance goals for each employee with specific deadlines and incentives. Retailers are using ERP systems and modern technology to sync and track milestones for employees to reach certain goals set forth by management. Placing an importance on an employee’s individual goals can help employees feel valued and motivated. With historical data, department heads can set realistic goals for employees and gauge employee performance. Performance based raises and bonuses are common ways to keep workers motivated.
Employees with expertise and good customer engagement are able to bring in 69% more money on average than other employees (CNBC). Retail companies cannot eliminate turnover completely, but they can save time and money through hiring the right candidates. Having an all in one system for retail companies allows them to use historical data and implement a process to hire the right candidate. Additional sales and optimum performance of a candidate can be attained by following a process that is created, tracked, and stored within an ERP solution. Internal harmony directly correlates with external success. Contact HSO today to find out how we can help you reach your Retail HR goals.
About HSO Retail
HSO, Microsoft’s ERP Partner of the Year 2014, is a leading provider of enterprise business solutions for the Multi-Channel Retail and Service industries, including Microsoft Dynamics AX, CRM, Office365 and SharePoint. For more information, contact HSO at (847) 348-0588, through email info-usa@hso.com or visit www.hso.com/us.
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