Retailers at risk of losing customers through poor recruitment practices

The increase in job seekers seen since the economic downturn has led to problems for recruiters in the retail sector, with almost a quarter (24%) admitting to being overstretched, according to research by SHL.

In many cases this has meant that recruiters are unable to communicate with job applicants effectively, with 19% saying they are now unable to give detailed feedback to interviewed candidates, 17% unable to let candidates know if they haven't been successful after the initial application and 16% unable to confirm receipt of applications.

Meanwhile, a survey of job applicants has found that almost half (49%) have been left with a negative view of a company following an unsuccessful job application and almost a fifth (18%) of these have taken their custom elsewhere as a result. Reflecting those tasks that retail recruiters have neglected, lack of communication appears to be the biggest issue for job seekers with respondents saying that not being told whether their application had been successful is their top concern (46%), followed by lack of feedback on applications (39%) and not acknowledging receipt of an application (36%).

The research has also found that retailers are worse than average at communicating with unsuccessful candidates after the initial recruitment stage – almost a fifth (19%) say that they don't do this, compared to an average of 16% across other industries. A similar number (20%) say they acknowledge receipt of the application but don't let candidates know whether they have been successful.

David Leigh, CEO, SHL, said: "These findings are a worry for retailers, as a negative employer brand could easily affect their consumer brand and job applicants who feel they have been treated badly could take their custom elsewhere. While it is understandable that recruitment teams are busy coping with more applications than they are used to, they will want to ensure they are communicating effectively with candidates even if they aren't suitable for the role, to ensure they don't lose loyal customers."

As well as potentially damaging their employer brand, the increase in job seekers has also led to extra expense for retailers as they struggle to cope with an unprecedented rise in applications. Almost a quarter (22%) of recruiters within retail organisations have taken on more people to cope with the increased demand and 40% admit to incurring extra cost for people time, technology or external resources to help manage the increased number of applicants.

Almost a quarter of retail recruiters (23%) have increased the number of recruitment stages as a result of the recession and 71% have brought in additional methods of selection, with increased entry requirements (29%), more detail required (25%) and realistic job previews (25%) the most popular choices.

However, 15% admit that their process has now become too onerous for applicants. A fifth (20%) say this is leading to candidates taking jobs elsewhere, slightly more (22%) say it has led to a longer time to hire leaving a gap in the business and over one in ten (13%) say line managers have to take more time out to get involved in recruitment.

Leigh continued: "With unemployment high, it is unsurprising that many retailers are struggling to deal with the increased number of applicants going for what is likely to be a fewer number of jobs. However, it is important that they deal with this situation effectively so that it doesn't end up costing them, both in terms of extra tools and resources, as well as a loss of reputation if they are failing to treat applicants fairly.

"There are a number of ways that retailers can screen applicants at the beginning, or a very early stage in the recruitment process, in order to minimise time spent reviewing CVs and conducting interviews. Tools such as ability and personality questionnaires as well as job previews all help to identify those who have the right skills, experience and motivation for a role. Plus saving this time means that recruitment professionals can focus more on communicating with candidates to let them know whether they have been successful and providing feedback. It can be easy to dismiss applicants who aren't suitable, but retailers must remember that unsuccessful job applicants are also potential customers and ignoring them could impact the bottom line."