On Keeping the “Keepers”

Some Ideas on Staff Retention

– Don Capman, President, J.D. Associates

In last month’s newsletter I wrote an article on best practices in hiring. I sheepishly admitted that having been an employer for 35 years, many of those years in retail, I had been quite proficient at using WORST practices, which cost me dearly over the years. Luckily, I am a reasonably intelligent business person who does not have an aversion to learning and, as such, have gotten much better at the hiring process. This month I would like to talk about how to keep a genuinely good employee with you for years.

Before I talk about keeping the great employee, I would like to caution you again to get rid of the bad employees as soon as possible. The better you become in the hiring process, the fewer mistakes you will make, but occasionally a bad hire will undoubtedly slip in under your radar. There were times when I recognized a bad hire and kept that person because I felt I needed a “warm body” on the sales floor. Hiring is just such a pain in the butt, and I didn’t want to go through the process again. Well, what I found out was that I not only didn’t have a “warm body,” but I had a “cold fish” whose primary skill was to chase away customers and cost me money. So, as soon as you find out that the hire is not working out in spite of your support and training, get rid of them. They’re costing you big bucks!

To improve your employee retention, where do you start? The first thing you should probably do is take a look at your retention and turnover rate and get a handle on where you really stand and think about where you want to be. If your retention rate is extremely high and reasons for turnover are things like employee relocation, seasonal help going back to college, personal illness, then you’re doing a great job. If that is the case, stop reading this article and read some of the other very interesting articles in our newsletter. I think most of you, however, will want to do better at retaining great employees. So read on. To help you structure a meaningful and accurate exam of your retention rate, complete a retention and turnover audit. I found a great one that will get you quickly on track and will help you think about what you want to do to improve your retention rate. Click here to begin the audit today. I’m sure you will find it intriguing, helpful and revealing.

Turnover is not the same from industry to industry or geographically. Unfortunately, the Bureau of Labor Statistics Retention Management and Metrics report that was published on November 9, 2004 puts retail in a substantial lead among other industries for having the highest turnover. If you would like to see this study go to: http://www.nobscot.com/survey/index.cfm. This study will also show regional differences in turnover.

Now, what are some of the things you can do to improve your employee retention?

• Your store(s) should be a fun place to work. Happiness is contagious and will spread from associate to customer. Atmosphere comes from the top.
  
• Develop a clear list of responsibilities so associates clearly know what is expected of them.
  
• Provide new associates with an in-depth orientation. Talk to them about the company culture and the goals of the company. Personally introduce them to other associates or staff to make them feel welcome.
  
• Train your associates well, so they aren’t afraid to assist customers and feel competent. Regular training from a manager or vendor not only transfers knowledge but also keeps everything new and exciting.
  
• Pay people well. Too often retailers try to “cheap out” and pay way too little. This results in less than competent hires and causes our great hires to leave for greener pastures.
  
• Offer a benefit package that might include a health plan, vacation time, personal leave time, and sick time. You might be questioning my mental health but, believe me, it costs you far more when you have a high turnover rate than a reasonable benefit package will cost you.
  
• Give people reasonable hours whenever possible. Too few hours will mean that they will have to find another job. Too many hours will mean burnout. Find a happy medium.
  
• Give associates an advancement path. You might want to show them how they can become part of the management team, or how they can advance to become a specialist on a particular product line you carry. Stagnation breeds turnover.
  
• Develop a relationship with a charity where all staff can somehow be involved. This charity can be local, national or both. It’s a “feel-good” thing and gets you great PR at the same time.
  
• Show concern about your associates’ personal life. After all, they spend most of their lives working in our stores. Show them some care and compassion when they need it but also take an interest in their lives in general.
  
• Buy everyone pizza once in awhile or breakfast before you open. It shows them you care and gets them in a positive team frame of mind.
  
• Most importantly, show respect for your associates. I have seen many retailers talk about their associates with great disdain. How would you like to work with that kind of emotional abuse?

In summary, get rid of the “cold fish” quickly, and do everything you can to “KEEP THE KEEPERS!” Your profits will increase and you will have created a better place to work and shop.