In retail it is no secret that turnover is fairly high. It would certainly be advantageous to record good turnover and bad turnover so you would know if turnover was created – meaning that it was a result of an effective performance management program – or if employees just came and went quickly for reasons unknown and/or unavoidable.
Very low turnover may mean that jobs are scarce in the area and people need to hang onto their jobs no matter what. At the same time management in those same stores might be afraid to manage performance properly for fear that they will ultimately have to let someone go. It may also indicate that the manager’s expectations are low – performance levels of the store would tell the true story.
Very high turnover could signal a serious flaw in the managers hiring, training and leadership skills.
So, just to ensure you are on top of this very important measure…figure out what is reasonable for good and bad turnover and then use those numbers as the benchmarks to measure all turnover results against. Any results that come in significantly above or below those benchmarks warrant investigation.
You’ll be surprised how much you can learn when looking into turnover results.
Here are a few benchmarks you can compare your staff turnover to:
Less than 10%: Very Low, make sure it is not a country club.
25-45%: High, take precaution.
Over 45%: Danger! You need to act immediately.