In an industry whose goal is to connect the outside world by means of communication, there seems to be a serious employee retention dilemma. It’s one thing to attract top talent, but for the wireless industry, there’s a problem keeping that talent working for you. In a recent 2016 study, The Wireless Telecommunication reported that the average loss of employees from wireless retail stores rose to 82% in a four year time period. This article will offer advice on how to combat this growing problem and improve employee retention.
As the consumer demand in the wireless industry grows, so do the employment opportunities. A seasoned manager knows that having top quality employees can lead to a higher revenue. However, this is where the disconnect starts. A study conducted in 2015 found that the top four leading phone companies averaged an accumulated revenue-per-employee of $592,251 on a four year span. That potential revenue, however, is contingent on having an employee stay long-term, and the truth is that employees are not staying long enough for the company to see any profits.
With many employees leaving the industry, wireless retail managers find themselves in an expensive cycle of constantly looking for new employees. A collection of data ran on wireless telecommunications in 2016 showed that it costs a pretty penny when starting the hiring process again and again. More specifically, the study found that the average cost of an employee is estimated at $65,028 over a four year period – a figure at which a wireless retailer would, at least on paper, see a profit from every hire.
It’s worth remembering that the negative impact of a high turnover goes beyond monetary losses. Resources, time, energy, and training are all tangential costs when hiring and onboarding. Customer experience can also suffer because of a high turnover. New employees generally don’t have much company knowledge or expertise, which can impact the needs of the customer. A poor customer experience can, in course, affect a store’s online reviews, damage their reputation, and hurt their ability to bring in new business.
To lower employee turnover, wireless managers need to invest in making better hiring decisions. This begins with investing in a better hiring process. Qualities of a great hiring process will be unique to every store’s needs, but we have identified a few hallmarks to set up hiring managers for success:
Identifying a few key questions to include on the initial application will cut down on time reviewing resumes and identify top talent faster. Find out the most important information from an applicant upfront and quickly filter out candidates who miss the mark.
Assessments and Benchmarking Tools
Assessments are a perfect opportunity to see beyond a candidate’s resume. Use assessments to gauge soft skills – like Sales Potential or Emotional Intelligence – as well as cognitive ability. Have current employees take the same assessments to see how applicants measure up with your best talent.
Consistent Hiring Process
Be Consistent. Design a process that yields great hires and stick to it for predictable results. Changing how you interview each candidate or skipping steps for some people and not for others takes away your ability to objectively evaluate talent and make better hiring decisions.
Making great hiring decisions by having a consistent hiring process in place is the first step towards lowering employee turnover. When you invest in your talent upfront and ensure they are the best fit for your company, you’ll build a skilled, dedicated team who’ll help your business grow.
Start Lowering Employee Turnover Today
At CareerPlug, we believe that structured hiring processes and easy-to-use recruiting software are key to making better hiring decisions and fueling your business’ growth. Our intuitive applicant tracking system has proven to be an asset to wireless retailers across the Big Four carriers, and we can help you attract qualified candidates, make informed hiring decisions, and save time on recruiting. Send us an email today to schedule a free demo!