Why is training within the retail sector important
Does your retail business have high staff turnover?
High staff turnover within the retail industry is infamously higher than any other. With 320 stores a week closing down in just the UK, staff are fleeing for employment prospects with more job security, an ensured minimum wage salary, benefits and better working conditions. However, those who remain within the industry note they tend to suffer in two key areas: A lack of motivation and the feeling of being easily replaceable, regardless of experience.
Your employees are your most valuable asset, which is why employee retention in retail is critically important in today’s competitive environment. Long standing employees understand the business better and can provide better customer service in terms of problem solving and solutions for your customers.
The high cost of losing employees
The new report carried out by Oxford Economics reveals that replacing members of staff within the retail sector incurs significant costs for employers at around £3,618 per employee. Some studies even report that figure to be much higher.
High employee turnover costs businesses in unexpected ways in the form of temporarily covering an employee’s duties through overtime pay for other staff. The time it takes to place job ads, conduct interviews and carry out employment testing. Personnel training costs such as orientation, teaching new staff members, shadowing employees and supplying uniforms. A new employee’s learning curve, which could include reduced quality, errors and productivity. Low employee morale associated with constant turnover can lead to further departures.
Is lack of recognition causing high staff turnover?
Motivation is the willingness to work hard to achieve an end goal. How willing are your employees to go the extra mile? How committed are they to make sales and meet quota? Motivated employees receive recognition and satisfaction, encouraging them to continue working hard which in turn gives your company exactly what it wants: productivity, quality, and sales.
A lot of retail staff below management level fail to see the importance of meeting budget as they believe there is no benefit to them. They believe there are no incentives below management level to work harder than the minimum amount required.
However, this couldn’t be further from the truth. When stores meet budget targets they are rewarded with more available hours for the store, which means more shifts for staff and in turn a higher wage. Many below management staff are not aware of this budgeting system. Not only do hours increase, but many larger chain stores will run competitions between stores with prizes awarded directly to staff. When staff are praised and rewarded for working hard and achieving above and beyond what is expected from them, they deserve recognition. The more valued and rewarded your team members feel, the less replaceable they feel. This leads to happier staff and happy staff stay, increasing employee retention within your business.
So what can we do to help?
Bottom line is, happy staff treat customers better and then they spend more. Happy staff, happy customers, healthy turn-over. If you put more energy into your staff, they’ll put more energy into the business.
Staff training is critical to any company and we can help you make the process easier, more relevant and problem specific.
Our experienced team from diverse backgrounds including retail, corporate, marketing, accounting, cyber security and local government can tailor make training relevant to your specific business needs and demands and include training scenarios to address issues within your business.
Want to take the next step in ensuring your employee retention? Speak to one of our team today and let us see how we can help revitalise your training journey. Call 03300430096 or email team@konnektis.com.
