The High Cost of Hires

The NACS State of the Industry Compensation Report can help retailers navigate the challenges of hiring new team members.

The High Cost of Hires

July 2023   minute read

In convenience, one of the biggest human resource challenges is hiring great team members who will grow (and grow with) the business. With issues like ghosting—failing to appear for a first scheduled shift with no explanation—now spooking managers everywhere, hiring can be a daunting task. To help convenience retailers navigate this market, the NACS State of the Industry Compensation Report collects recruitment and retention metrics of full- and part-time sales associates as well as managers.

In 2022, the average cost to hire full-time associates was $1,196 and part-time associates $1,022, a slight decrease compared to 2021, when the costs were $1,424 for full-time sales associates and $1,049 for part-time associates.* 

Cost to hire only accounts for costs incurred prior to an employee’s first shift, meaning they don’t take into account issues like ghosting. In 2021, 72.8% of full-time associates accepted an offer and 70.6% of part-time associates accepted an offer. However, the ghost rate was 23.3% for full-time associates and 20.3% for part-time associates, meaning about one out of every five people offered a position did not show up for their first shift. In 2022, 76.4% of full-time sales associates and 74.0% of part-time sales associates accepted an offer, potentially indicating more favorable conditions for employers, while the ghost rate also improved slightly overall: 18.7% for full-time sales associates and 22.8% for part-time sales associates. 

*Note: the NACS Compensation Survey is not a same-firm sample.

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