FINANCE

CareerBuilder survey: One bad hire costs business more than $50,000 on average

BY CSA STAFF

Chicago — According to a survey released Monday by CareerBuilder and conducted by Harris Interactive, 80% of retail companies report that a bad hire has adversely affected their business in the last year, meaning that hiring the right employees will become a top priority in 2011.

Nearly one-quarter (23%) of the 254 U.S. retail hiring managers surveyed said that one bad hire cost their business more than $50,000 in the last year. One-third (33%) said that one bad hire cost them more than $25,000.

When asked how a poor hire affected their business in the last year,
retail employers reported the following: 45% said it resulted in less productivity; 38% reported lost time to recruit and train another worker; 34% said it had a negative effect on employee morale; 29% reported fewer sales; 19% said it had a negative effect on client relations; and 11% reported subsequent legal issues.

"Poor hires can have a significant effect on customer service, which can negatively impact sales," said Ben Jablow, managing director of WorkInRetail.com. "Bringing the right talent on board is essential to help maintain their bottom line, and keep customers satisfied. As a result, retailers are working to proactively prevent bad hires through target talent research and improved sourcing techniques."

Of retail employers who made a bad hire, 42% said they think they made a mistake hiring someone because they needed to fill the job quickly, followed by lack of understanding of where their target talent is (20%) and unsuccessful sourcing techniques (9%).

Nearly half (49%) said they have an average cost per hire of more than $1,000, up from 11% in 2008.

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STORE SPACES

Callison names retail addition

BY CSA STAFF

Seattle — Retail design firm Callison said Tuesday it has added Shawn Rush as associate principal in the company’s Seattle office.

Rush, a LEED AP, will focus on business development in the Global Retail studio, which includes national accounts and workplace interiors. Her role also consists of identifying developing trends and targeting market opportunities for Callison’s domestic offices.

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News

Target to save planet too

BY CSA STAFF

While such retailers as Kohl’s, Walmart and Office Depot were receiving accolades for their sustainability efforts the past few years, Target was seldom mentioned in the same breath. Target wasn’t exactly destroying the planet, but it was far less vocal and precise than others about its efforts in the area of sustainability. Not any more. The company last week established some clear goals regarding resource usage, waste elimination and carbon footprint reduction and a time frame in which to achieve them.

“Target has long invested in the health and sustainability of our communities by integrating rigorous programs throughout our business that reduce our environmental impact,” said Gregg Steinhafel, Target’s chairman, president and CEO. “We believe the commitments announced today will guide our ongoing efforts to further engage Target suppliers, team members and guests in our sustainability initiatives.”

By 2016, Target said it plans to reduce waste sent to landfills by 15%, reduce water usage and greenhouse gas emissions by 10% per sq. ft. and earn the Energy Star label from the Environmental Protection Agency for at least 75% of its buildings. In addition, the company plans to improve the efficiency of general merchandise logistics by 15% to 20% through the use of cleaner and more fuel-efficient transportation practices.

Target said it has incorporated environmental sustainability into its business strategy for more than three decades, installing rooftop solar systems, converting to energy-efficient light fixtures and adopting other initiatives that have earned it Energy Star certification at more than 100 stores. Additional information on the company’s efforts is available at hereforgood.target.com/environment.

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