Every Retail Employee Hired Is A $22,000 Investment Decision
Hiring a new employee into your store is an investment decision… and it’s expensive! When you think about making a hire, you’re essentially investing money into a person to get a return. Through the sales that individual makes, the number of shelves they are able to stock, or the first impressions they make on your customers, the amount of money you spend to have them complete that task ultimately results in sales that make your business successful.
The average Retail Sales Associate makes an average of $21,968 per year. The average Retail Store Manager makes $43,543 per year. Those are big numbers that quickly add up as you recruit and make hires for your team.
$22,000 may not seem like a huge number when you’re looking at a yearly salary, but if you flip your perspective and accept the mindset that hiring is an investment decision, suddenly that number begins to appear much more substantial. Many organizations would spend a considerable amount of time evaluating a $22,000 piece of technology, or contemplating an addition to their store. A decision like that could take a month, 6 months, or even a year in some cases. When thinking about the volume of hires many organizations make on a yearly basis, this investment decision can easily reach into the hundreds of thousands of dollars or even millions.
The reality is that hiring managers are making these $22,000 decisions daily, sometimes even more than once per day, with little to no solid structure or data to support them. Often a decision is made after a resume review and a 15-minute interview. Would it not make sense to have a more consistent evaluation process to ensure that the hire you’re about to make is a sound investment decision that will result in a positive ROI?
Without a solid recruitment strategy for your front-line employees, turnover will start to eat at your bottom line (current turnover rates for retail employees sits at 67%). Cost-of-hire will increase because your hiring managers will spend more of their time sourcing, recruiting and hiring employees. Add in the $22,000 investment per employee and it’s easy to slowly lose the traction and insights that make your organization successful and profitable when looking at recruiting and hiring quality talent.
Mindfield is a Recruitment Process Outsourcing (RPO) solutions provider that partners with companies to create powerful hourly workforces. Our solutions combine professional recruiters, simple to use technology and a data-driven hiring strategy that promises to improve the quality of your hourly workforce. This approach focuses on tying business outcomes such as sales performance, tenure, and engagement to the selection, hiring and measurement of quality candidates.