This article is brought to you by Sprockets.
ALEXANDRIA, Va.—Employee turnover is a common occurrence in the convenience retail industry, with the average turnover rate for part-time associates at 154% in 2020, according to NACS data. The cost to hire a full-time associate was $1,341 in 2020. Hiring an employee who will stay with the company long-term is crucial.
There are various reasons why employees decide to leave a job, but some of the most common ones include a lack of growth opportunities, poor pay/benefits, negative culture and scheduling, according to Sprockets, a provider of AI-powered hiring software.
“Managers can influence at least 75% of the voluntary employee turnover that occurs in the workplace, so it’s crucial to hire the right fit,” said Chad Troutman, CMO of Sprockets. “Using artificial intelligence during the hiring process can show operators which applicants are the best match for the role and business.”
Sprockets’ Applicant Matching System reduces employee turnover by allowing operators to create a unique success profile based on the mental makeup of their current top-performing employees and then evaluate applicants against this benchmark. Operators can then see which applicants are the best fit for the position based on the simple, red-yellow-green scoring system within the Sprockets dashboard.
“The system has been proven to reduce annual turnover by 22%,” said Troutman.
Artificial intelligence (AI) is a key component in reducing turnover, but according to Sprockets’ e-book “The Ultimate Guide to Employee Turnover,” implementing these four strategies along with AI can lead to a significant boost in employee retention.
Career Pathways: Have a plan on how applicants can advance at your company and communicate it clearly. Also, take care of the employees you have by conducting one-on-one meetings to review their goals and progress.
Competitive Pay/Benefits: Paying a slightly higher wage to retain employees can outweigh the time and money spent on turnover. If increasing pay isn’t possible, competitive benefits may be an option.
Positive Workplace Culture: Hiring one bad employee can impact the rest of the staff in a negative way, forcing them to cover shifts and pick up slack. Before hiring someone, be sure that they will fit the existing culture.
Scheduling Practices: Be competitive in your space by providing guaranteed hour allocations, posting shifts in advance and offering easy ways to swap shifts.
Download Sprockets’ e-books:
This is the second installment of a two-part NACS Daily series on hiring and retaining employees in a tight labor market. Click here for more information from Sprockets on how to reduce employee turnover.