Study Finds 27 Percent of Top Retailers Utilize Technology to Staff Hourly Workers
iLogos study examines the hourly job application methods used at the Top 100 Retailers; Findings show increasing opportunities for retailers to leverage technology to streamline recruiting and staffin
San Francisco, CA – November 18, 2004 – iLogos Research (www.ilogos.com), a division of Taleo Corporation focused on consulting in the areas of staffing management economics, benchmarking, and best practices, today released a new study that examines the hourly job application methods used by the Top 100 Retailers in the United States. The key findings of the study indicate that major opportunities exist for retailers to better leverage technology in recruiting and staffing processes, rather than the traditional paper and pencil-based methods.
The study, entitled, “We’re Always Accepting Applications” shows that the majority of top retailers accept paper applications, with one-half accepting paper applications only. Use of technology in the recruiting and staffing process among top retailers is low. Seven percent of the top 100 retailers accept hourly applications solely through their corporate website, and only 22 percent of surveyed retailers utilize an in-store computer based application, such as a computer or kiosk station, to collect applications from hourly workers.
iLogos Founder and President Yves Lermusiaux stated, “According to the National Retail Foundation, the average turnover rate in retail positions is 64 percent, making the sheer volume of hourly hiring staggering. With the majority of top retailers still accepting paper applications, and the turnover rates so high, there remains a large opportunity for retailers to incorporate technology into the hourly hiring process, making it more efficient, increasing the quality of hire, and helping to lower turnover throughout the industry.”
The cost of turnover, including sourcing, training and on- and off-boarding, are significant for all industries and types of positions. Retail trade and business services, however, account for nearly half of all voluntary turnover. For the retail industry, hourly hires that are poorly suited to their jobs, are extremely expensive and disruptive to the daily business and customer care operations. The iLogos study highlights that by instituting a consistent staffing process geared towards identifying top talent, retailers can create systemic improvements across the organization, improving productivity store by store.
Lermusiaux added, “We have conducted studies on how an increase in the quality of hire translates directly into lower turnover rates. Our findings indicate that corporations that have comprehensive solutions in place to streamline the recruiting and staffing process, along with detailed candidate assessments, have experienced a significant increase in the quality of hire throughout the enterprise. This translates directly into a more satisfied workforce and higher retention rates, which will ultimately improve the customer experience at retail outlets.”
A complete copy of the study can be downloaded at www.iLogos.com/iLogosHourly.
Methodology
The list of Top 100 Retailers in the United States was identified by the National Retail Federation in July 2004. To determine the methods of hourly applications of the Top 100 Retailers, iLogos researchers randomly chose one store to contact for each retailer. The sample was concentrated in four U.S. metropolitan locations: San Francisco, Minneapolis, Raleigh, and Houston. In addition to surveying each store by telephone, site visits were made to 20% of the sample. iLogos researchers also analyzed the corporate websites of each of the Top 100 Retailers to determine if hourly applications are accepted online. All research was conducted through the month of September 2004.
About iLogos Research
iLogos Research (www.ilogos.com) consults with large organizations worldwide on staffing management economics, metrics and best practices. The specialty consulting and research practice focuses on business analytics that tie staffing technology and process improvements to financial results. iLogos conducts primary research on critical issues of staffing management and maintains a valuable library of staffing management resources. Published reports and studies include Quality of Hire, Internal Mobility, Economics of Candidate Relationship Databases, TrendWatch, Corporate Careers Site Value Creation, Jobseeker Surveys, among others. Founded in 1997 as iLogos Internet Intelligence, iLogos is the strategic staffing research and metrics consulting division of Taleo.
About Taleo Corporation
Taleo Corporation (formerly Recruitsoft, Inc.) is the leading provider of enterprise talent management solutions that enable organizations to establish, automate and manage worldwide talent management processes for salaried, hourly and temporary staff. Taleo customers use the company’s solutions to enhance the quality, productivity and satisfaction of their workforces. Taleo solutions incorporate resource allocation principles to more accurately match total labor demand and supply across complex organizations. Among the company’s leading marketshare of F500 enterprise customers are ARAMARK Corporation, Dow Chemical, HP, P&G, Starbucks Corporation, UnitedHealth Group, and Washington Mutual, among many others. Taleo maintains the industry’s leading uptime for its solutions delivered over the Internet to more than 365,000 users in 85 countries, and serves 20 million candidates from 190 of the world’s 193 countries and independent states. Taleo’s principal office is located in San Francisco, CA.
Taleo has received significant recognition during 2004 for its solutions, technologies and continued growth, including: “Top HR Product of the Year,” - HR Executive Magazine; “HR Technology Award for Creative & Innovative Development of HR Technology” - IQPC; “TecHR Award for Staffing Process and Content Delivery Technologies” - IDC and TecHR; “11th Fastest Growing Technology Company” - Deloitte Technology Fast 500; 7th Fastest Growing Technology Company in Silicon Valley” - Deloitte Fast 50; 23rd Fastest Growing Private Company in the Bay Area” - San Francisco Business Times; “Software 500 Listing” - Software Magazine’s World’s Most Foremost Software and Services Leaders; and “Top 100 Places to Work,” MacLean’s Magazine.
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