Turnover in the retail sector is a reality that can seriously compromise profitability and operational efficiency.
According to studies by specialized organizations such as the Center for American Progress and the European Institute for Diversity Management, the cost of replacing an employee can vary between 30% and 150% of their salary, depending on their experience, skills, and time in the company.
These costs range from the search for new candidates and the time spent on interviews to the training and integration of a new team member.
It is, therefore, essential to implement effective strategies to mitigate this financial impact.
THE SELECTION PROCESS
A key first step is a selection process based on cultural alignment. Hiring staff who identify with the company’s values can significantly improve retention in a market where each store has its own identity.
Companies with excellence-based selection models can reduce turnover by choosing candidates whose skills align with the business’s mission and vision.
Through assessments that analyze technical skills and socio-emotional skills, hiring is ensured to strengthen team commitment and cohesion.
However, proper selection is only the beginning. A continuous development plan can be just as decisive.
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TRAINING FOR SUCCESS
In the retail sector, training tends to focus on operational issues, but offering opportunities for professional and personal growth (such as mentoring or specific training) makes employees feel that their development is a priority.
This not only improves their performance but also increases their loyalty.
Finally, implementing a system of recognition and reward is crucial. A well-designed recognition program strengthens the sense of belonging and can significantly increase job satisfaction.
By delegating the management of these recognition systems to specialists, stores can create an environment where employees feel valued and motivated, which translates into operational stability and efficiency.