Recruiting is a key competitive advantage for retailers. Engaged, knowledgeable employees turn the buying process into an experience - an experience that keeps customers coming back.
Given the nature of retail recruiting, retail talent acquisition is perfectly positioned to drive revenue.
In our latest eBook, “5 Ways Retail Recruiting Can Drive Revenue”, you'll learn five different ways retail talent acquisition can create revenue and prove ROI.
Where Retail Recruiting Can Impact Revenue
There are four primary areas where retail talent acquisition can directly affect revenue.
1) The Candidate Experience
For some retailers, the percentage of candidates who are also customers can be over 50%. While that number might seem intimidating, it hides an incredible opportunity.
While a poor candidate experience can hurt you, a great candidate experience builds brand loyalty and keeps your customers coming back.
Of course, tracking the exact impact of your candidate experience can be difficult. In the eBook, you'll learn an approach that lets you put an exact revenue number to your candidate experience initiatives.
2) Time to Fill
The average time it takes to fill a retail role has doubled in the last 9 years.
For sales roles, it's relatively simple to calculate your impact on revenue by decreasing time to fill. You can use the average daily output per salesperson to calculate the cost of vacancy, then evaluate the impact of decreasing vacancy time.
For example, if a single salesperson generates - on average - $500 in revenue per day, your organization effectively loses $500 each day for every vacancy in your sales force. If your average time to fill (vacancy time) is 40 days, and you cut it down to 20 days, you increase your organization's revenue potential by $10,000 per hire (20 * 500).
In the eBook you'll learn four retail recruiting strategies that greatly decrease hiring time while improving quality of hire.
3) Employee Turnover
It costs, on average $4,000 to backfill a retail employee. The average annual turnover rate in retail is 60%. While your organization's numbers may vary, calculating cost of turnover per store is relatively simple.
Percent Annual Turnover * Number of Employees per Store * Cost to Backfill
Cost of Turnover per Store
A retailer with 1000 locations, 40 employees per store, and an industry average 60% annual turnover should expect an annual cost of turnover around $96,000,000.
4) Hiring Manager Time Savings
Hiring managers can spend between 10% and 30% of their time screening and interviewing candidates. This is time they can't spend developing employees, managing their store or department, and selling to customers: all activities that generate revenue in one way or another.
Retail talent acquisition can remove much of the burden on hiring managers by empowering them with technology and serving up only the best candidates for their store.
- Assessments that scientifically identify the best candidates;
- Video interviewing that lets managers review candidates at their convenience; and
- Scheduling automation that lets candidates self schedule their own interviews.