Staff turnover in the retail industry is an ongoing problem – a recent report published in the UK revealed that replacing employees costs the country £673million per year, with companies spending more than £20,000 recruiting staff with salaries of £25,000 or higher.
Finding the right candidate for the role isn’t the only expensive activity. Specialist training in products and technology is required for most retail staff, and it takes an average of 23 weeks before they reach full levels of productivity, resulting in more lost income for retailers.
Sometimes brands become so lost in the recruitment process that they forget to question whether their staff structure is cost effective. By taking a step back and looking at the analytics of your business, retailers can often find opportunities to make cost-saving changes and increase employee retention rates.
As well as providing an insight into customer activity, analytics at the site level are a useful tool when determining staff value. By looking at individual performance against variables such as salary and length of service, you can build a picture of what financial return each member brings to your team.
You can use this calculation to make strategic decisions about your staff structure. For instance, investing in experience staff who’ve made proven contributions to your business may actually be better financially rather than employing new lower level, inexperienced personnel.
Site level analytics may even reveal that exiting staff don’t need replacing – rather than scheduling employee rotas following a forecast of sales made, you can use data to identify conversion rates and where sales were lost. From this, you can customise your workforce structure to ensure the right number of people with the optimum level of expertise are working at any one time.
To learn more about how site analytics and workforce management can benefit your retail business, click here.