STORES Magazine - November 2008 - (Page 80)

CONSIDER THIS / POINT OF VIEW Where Has All the Loyalty Gone? BY BEN JABLOW Regardless of what kind of store you have – from a small grocery store to a global apparel conglomerate and everything in between – retail is a high-touch industry where your employees make your store what it is. In retail, your employees are your brand and are not just an accessory. Therefore, giving them the same attention as your customers and investing in worker loyalty is crucial to your success. When employees are devoted to their organization, they are more likely to be productive, generate larger sales and stay with the company longer – all of which contribute to a stable working environment. That stability can be a challenge to maintain in retail, and keeping workers loyal in our industry can be an even higher mountain to scale. A quarter of retail workers Ben Jablow is managing do not feel loyal to their curdirector of WorkInRetail.com, a rent employers, and the division of CareerBuilder.com. same percentage of workers are likely to leave their current positions to change jobs in a year or less. In addition, according to new research from CareerBuilder.com, 85 percent of the more than 800 retail employees surveyed said they are not actively seeking a new job, but would leave to accept a new position if they came across the right opportunity. path programs create a positive, forward-thinking environment that can help you compete with other stores for top talent, reduce turnover and give your employees a reason to be brand ambassadors. Offer bigger paychecks and improved benefits. While a career in a customer-focused industry like retail can be personally rewarding, people still have to pay their bills. Therefore, more lucrative compensation helps to retain workers. If your budget doesn’t allow for salary increases, consider alternatives such as flex time, additional vacation, improved health care and other programs that show you value your employees. Develop an employment brand. An employment brand — the reputation you have as an employer — can play a powerful role in attracting and retaining the types of candidates that will be critical to your success. When employees recognize the benefits of staying on board and being loyal, they are likely to be more productive – ultimately contributing to your bottom line. Why are they looking? Workers reported several reasons for keeping an eye on greener pastures: • They don’t feel that their employer values them (71 percent) • They think their efforts are not recognized or appreciated (62 percent) • The employer doesn’t pay them enough (65 percent) • There are few career advancement opportunities at their current company (35 percent) Retail workers who don’t feel valued are likely to become less productive and engaged on the sales floor and behind the scenes, negatively impacting your bottom line. Therefore, retail employers need to focus on employee retention by implementing the following practices: Focus on career advancement. Retail employees want to know that they have a future with a company. Career 80 STORES / NOVEMBER 2008 Cost of new employees Lower turnover can have a significant impact on your bottom line, too. More than a quarter of retail employers (27 percent) have an average cost-per-hire of $500 or more; 10 percent estimate their cost-per-hire at $1,000 or more. In addition, 28 percent of retail employers estimate it takes them more than six months to recoup expenses associated with recruiting a new employee once he’s on board. Retailers wondering where all the employee loyalty has gone should take a closer look at the efforts being made to attract shoppers — and take the same approach with their employees. You aim to provide the best prices for your customers; strive to provide appropriate pay and benefits for your workers. As you focus on a flashy and attractive consumer brand, make your employment brand equally appealing and well known. And the integration of a tiered rewards program for loyal customers should be emulated in a career advancement plan for employees. If overlooked, retail employees may be tempted to go to shopping – for a new position. WWW.STORES.ORG http://www.WorkInRetail.com http://www.CareerBuilder.com http://www.CareerBuilder.com http://WWW.STORES.ORG

Table of Contents Feed for the Digital Edition of STORES Magazine - November 2008

STORES Magazine - November 2008 Contents Executive Editor's Page President's Page Every Cup Counts What Shoppers Think Less Park Time, More Shop Time 10 Things You May Have Missed Numbers Worth Counting Full Price/Markdown Retail People Retail Held Captive First Look Concept2Watch Marketing Technology Custom Software PCI Compliance Data Security Arts Update Newsbeat LP Issues: Q&A Cover Story Surveillance Systems Online Fraud Industry Perspective LOEB Retail Letter Point of View NRF News Retail Crossword Retail Industry Calendar Last Laugh

STORES Magazine - November 2008

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