Employee turnover in the retail industry is a prevalent challenge that comes with significant costs. The retail industry faces considerable turnover rates, as highlighted in McKinsey's report on attracting and retaining frontline talent amid the great attrition. This persistent issue necessitates proactive measures to address the associated challenges effectively. While the direct expenses of turnover are well-known, such as recruitment and training, there is a hidden cost that often goes unnoticed: rekeying.
In this article, we will delve into the impact of high turnover on rekeying costs and explore how implementing an effective key control system can mitigate these expenses. By understanding the importance of key control in reducing the hidden costs associated with turnover, retail businesses can enhance security, improve operational efficiency, and ultimately save valuable resources.
The High Cost of Turnover
Employee turnover incurs both direct and indirect costs for retail businesses. Direct costs encompass expenses related to recruitment, hiring, training, and onboarding new employees. Indirect costs arise from the negative impact on productivity, team dynamics, and customer service during the transition period.
This infographic illustrates the high cost of employee turnover in the retail industry.
Rekeying: The Hidden Cost of High Turnover
High turnover increases the frequency of key changes, leading to a higher risk of lost, stolen, or unauthorized duplicates of keys. Rekeying becomes a necessary measure to protect assets and maintain security. It incurs direct costs through the engagement of locksmith services and indirect costs in terms of potential asset loss, staff safety concerns, and decreased productivity.
Key Control: Minimizing Rekeying Costs in Employee Turnover
A robust key control system streamlines the process of changing or rekeying locks, saving you time and resources. The enhanced security provided by a strong key control system not only safeguards your facility but also has a positive impact on your bottom line in the long run. Here are some of the ways a good key control program can lower your operating costs:
⦁ Increased Productivity
⦁ Risk Management and Loss Prevention
Increased Productivity
A strong key control system minimizes the risk of losing track of a key and maintains an up-to-date record of key responsibility. By streamlining the process of changing or rekeying locks, it saves time and allows employees to focus on their daily duties. Eliminating the need to search for missing keys or wait for locksmiths enhances productivity and keeps the organization running smoothly.
Risk Management and Loss Prevention
A good key control system offers real-time tracking and auditing of keys and key holders. It provides visibility into who has access to which key, enabling prompt action in the event of missing keys. By identifying missing keys sooner, businesses can take immediate measures to recover them or rekey locks, minimizing the risk of security breaches. Integration of user-rekeyable locks into the key control system can further optimize cost savings. With user-rekeyable locks, businesses can rekey an entire facility themselves, eliminating the need for costly locksmith callouts.
By implementing a comprehensive key control program, retailers can effectively mitigate rekeying costs, enhance security measures, and create a safer and more productive environment for both employees and customers. Investing in key control not only reduces expenses but also brings long-term benefits by fostering a culture of accountability, preventing security breaches, and optimizing resource allocation.
If you’re ready to take the next step toward ensuring your assets are secure, InstaKey may be able to help. Schedule a call and see what InstaKey can do for your security.
