How an internal social network can dramatically reduce turnover

February 4, 2008 at 12:29 pm | In Social Networks |
Tags: retention

I just listened to a podcast interview about Best Buy’s internal social network called Blue Shirt Nation. During the interview they mentioned a statistic that absolutely blew us away.

Normal turnover rates for retail employees is 40-60%. However turnover rates for those employees ENGAGED on Blue Shirt Nation is only 8%.

Now if that isn’t proof positive that social networks can improve your retention efforts and keep employees engaged, then nothing will convince you about the power of social networks.

The podcast and related blog post is on the Marketing Edge. Get it here. It’s a must-listen.

Note: Blue Shirt Nation has 18,000 employee members.

4 Comments »

RSS feed for comments on this post. TrackBack URI

Thanks for the post and listening to the marketing edge. I just want to clarify this post when you listen to the podcast at around the 4:20 mark we cite retail employee turnover rates between 40 and 60% according to the labor department.

Now you are correct some stores have even higher turnover rates. Also another point to note is that at Best Buy the average age of a Blue Shirt sales associate is 19.

Lastly, as a father of two teenagers, and a business owner who has employed many people, an understanding of social media is essential for any employer. While younger workers are surely active users, the idea of sharing common interests online is not limited to a younger age group. Just look at Oprah’s online community for books and other topics http://www.oprah.com/community/index.jspa . Healthcare is another areas that will drive more and more consumers to compare and choose plans online, look at http://www.thehealthcarescoop.com

These single data points paint a picture that social media is part of the American landscape, whether it’s YouTube presidential debate questions, or texting votes for American Idol, they all point to growing acceptance of social networks.

All the best, and thanks again for sharing this post.

Albert Maruggi

Comment by Albert Maruggi — February 4, 2008 #
This is interesting but (a) what percentage of BB employees are active on Blue Shirt Nation, and (b), what percentage of them are “Engaged?”

Comment by Colin Kingsbury — February 4, 2008 #
I’m not sure Colin but I think the overall point is clear…engage your employees and they are more likely to stay.

Comment by allcountyjobs — February 4, 2008 #
I think there’s a distinction that’s important to note. As you mention, you can argue on one hand that BlueShirt Nation increases engagement and reduces turnover. I don’t have data to support that- too many other details factor into employee engagement.

I think we can say with confidence that since the site is voluntary, it attracts some of our most engaged employees.

Comment by Steve Bendt — March 3, 2008 #