Employee Turnover is long recognized as being one of the Top 5 problems or business concerns plaguing retailers. The obvious costs associated with the challenge of finding, hiring and keeping associates is: recurring new hire training costs, added general labor costs, reduced productivity, less than optimal customer service, and of course, a 20-30% negative shrink impact.
Recent estimates of “how much does a new employee cost” fall into a range of $2400-$3300. While some of these costs will always remain, properly training new employees about shrink prevention can offset many other costs within 90 days of hire.
Therefore, every company must have as part of their new hire orientation and training process and training chapter on what is shrink loss, what is loss prevention, what is your job as it relates to preventing loss, and what are the basic economics of retail shrink loss? If you don’t now have such a orientation program, here is a starting point:
- Teach all employees the definition of shrink.
- Explain the current cost of shrink to your store/company.
- Give examples of how each associate can help prevent shrink.
- Explain why associates should care – make it personal.
- Share the visible results of a store ‘Shrink Walk’ through your store.
- Pass-out, explain and discuss your store loss prevention policies.
- Set specific goals for reducing store shrink.