Staff turnover in the retail sector outstrips every other industry time and time again. In 2019 – pre pandemic – turnover reached a peak of 76% throughout the consumer retail industry. That’s three out of four people leaving their job!
Despite those astronomical figures, it would be no surprise if they are eclipsed when the figures for 2020 land on our desks! The contributing factors to this could be seemingly endless; redundancy due to a loss of trade, furlough, ill health, periods of self isolation, no longer wanting such a front-facing role during a pandemic… you get the picture!
But where does that leave you as a business owner? Keeping good and competent people happy is at the heart of every successful business for a reason, and it’s also a central element to ensuring your stock loss is minimised at a time when the bottom line has never been tighter.
Here are just a few things to consider when it comes to staff turnover and the problems it can cause…
Using experience to minimise stock loss
No matter if it’s in-store, in the warehouse or at the distribution end of things, the retail sector revolves around people. That’s the reason human error is one of the most common causes of stock loss every year. We all make mistakes and it’s been proven time and again we make more when we’re new and learning.
At a time when staff turnover is as high as it has ever been, that obviously leaves us with two questions:
- How can we identify it?
- How can we stop it?
How can we identify it?
The problem with small errors is that they can very quickly lead to big problems over time. A missed pallet here, an error in ordering there; whilst innocuous at the time can quickly lead to a business being heavily overstocked or woefully understocked. Both are obviously not a good thing!
If you’re regularly welcoming new staff, effective stocktaking should form a central pillar to your business. Why? Because this is the easiest way to ensure you know what you’ve got and when. In essence it’s the key to improving the margins you make on every sale.
If you can use it to identify where things are going wrong (and this doesn’t only apply to stock loss through human error) you’ll be in a better position to quickly address it and maximise your stock.
How can we stop it?
Once identified, the answer to stopping it is usually through effective training. This is particularly important at a time when new members are joining your team. The issues your stocktaking highlight will be able to guide future training to ensure any potential issues are being addressed.
Whilst we’ll always make the odd mistake, identifying them quickly and correcting them through training will ensure you remain as profitable as you should be.
Contact your trusted advisors at Abacus Valuers on 01637 874609 or visit https://www.abacusvaluers.co.uk/our-stocktaking-services and let us help.