Mastering Employee Recruitment and Retention in Retail

How to Find and Keep Good Employees

Finding and retaining good employees is a question sure to garner an impassioned response from any retailer. For sure there are no easy answers. From discussions I’ve had with retailers on this topic one thing is very clear: the interview process is the most crucial step in the hiring and retention process.

If you were to look back at good hires I believe you would find that they all had impressive interviews and all seemed likely to adhere to company values and have a full understanding of the job being offered. Conversely when shortcuts are taken during the interview process or circumvented in some other way potential trouble often lurks ahead.

Interview Process

One retailer I spoke with insists on two to three interviews over multiple days with key management personnel. He strongly encourages that all retailers know the laws in their respective state and get everything on the table by asking good questions. Understanding the job description and time commitment are essential components that must be covered and well documented. Keeping good records as part of the personnel file is a must including signed statements from the employee stating that they have read and understand all aspects of the job description.

This particular merchant has an initial review after 90 days and annually thereafter. Do not skip the annual review!

Experience and Personality

With regard to experience prior experience is obviously a plus and is of course essential for key positions such as buying and store management. He offers that older employees provide stability and work ethic but there may be health issues to deal with. “Big personality” is key. The employee must be able to relate well to others. People buy from people they like.

Core Values

Another store owner I spoke with who enjoys low employee turnover emphasized that any potential employee must be able to relate and support the core values of the company. These values will vary based on…

Finding and Keeping Good Employees

The needs and overall mission statement of the company are crucial. A list of five to 10 key points that are central to the core of the organization should be adhered to. Obvious due diligence such as background checks including criminal history and drug use can also be helpful.

“If you pay peanuts you get monkeys.”

FLOOR SPACE

By Ritchie Sayner

Average Age of Major Life Events

Source: U.S. Department of Labor & Commerce; Wells Fargo Securities

Lighting of Choice among 2016 WSER Finishers

Source: Western States 100-Mile Endurance Run Runner Survey

Usage of Wireless Network in Stores

Source: Retail Systems Research

Outdoor Participation by Age

Source: Outdoor Industry Association

Persons 18-34 by Relationship to Head of Household and Presence of Children (November 2015)

Source: Nielson

• Dependent Adults
• On Their Own
• Starting a Family

Lighting Preferences

• Other: 13.6%
• Princeton: 2.2%
• Fenix: 2.6%
• Black Diamond: 26.5%
• Other: 5.7%
• Princeton: 3.5%
• Fenix: 4%
• Black Diamond: 30%
• Petzl: 55.1%

Extent to Which a Brand’s Social Media Presence Influences US Social Media Users’ Holiday Purchase Decision Ages 18 and Up

Source: G/O Digital

• A factor among other things: 18.9%
• Has some influence but not overly important: 29.1%
• Irrelevant: 44.7%
• An Important factor: 7.4%

Actions That Make People Follow a Brand on Social Media

• Interested in Their Product/Service: 73.4%
• Offered an Incentive: 58.8%
• Friends Follow/Like Their Content: 51.3%
• Interested in Promotions: 42.2%
• Interested in Their Industry: 41.5%
• They’re Entertaining: 25.1%
• To Communicate with Brand: 21.0%

Likelihood of Buying from a Brand People Follow on Social Media

Source: Sprout Social

• NO CHANGE: 37.8%
• LESS LIKELY: 3.8%
• MORE LIKELY: 57.5%

0% 20% 40% 60% 80% 100%

20 60 64 68 72 76 80 84 88 92 96 00 04 08 12 16

20 21 22 23 24 25 26 27 28 29 30

Average Age of Major Life Events

First Marriage

• Males: 2015 @ 29.2 Years
• Females: 2015 @ 27.1 Years

First Child

2013 @ 26.0 Years

Participation in Outdoor Activities by Age (2015)

Percent of U.S. Adults 6+

• 20%
• 10%
• 0% 30% 40% 50% 60% 70%

Resultant ILR

• Average annual spend per customer
• Vertical ILR Age

Peak ILR (BW.S.-1) SRFS

• SFFS
• MFFS partial
• full MFFS

0% 5% 10% 15% 20% 21.4% 20.7% 16.1% 19.7% 20.4% 25%

Jobs Paying

• All cases
• All cases excluding physicians and executives
• Jobs paying $30k or less
• Jobs paying $50k or less
• Jobs paying $75k or less

Replacing employees is costly for companies’ bottom lines

Source: Center for American Progress; analysis of 30 case studies on the cost of turnover from 1992 through 2007

Percent of Salary

• Economic Value to the Organization
• Cost to Value of an Employee

Source: Bersin by Deloitte

Employee Engagement

• New Hire
• Onboarding
• Training
• New Assignment
• Time Employee Engagement Recognition Development Great Management
• Discretionary Effort from High Engagement

“Return Zone” The organization is benefitting from you

“Investment Zone” The organization is investing in you

150 125 68 1398 7237

Wireless Network Availability

• No wireless network available in store
• Wireless available only for receiving and other inventory control related tasks
• Wireless available throughout the store for performance management POS & product related tasks
• Wireless available for customers

Age Groups

• Age 6-12
• Age 13-17
• Age 18-24
• Age 25-44
• Age 45+

2016 2015

• 80%
• 70%
• 60%
• 50%
• 40%
• 30%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Spend Category Distribution by Generation (2015)

Source: JPMorgan

• Travel Experiences: 34% 28%
• Entertainment
• Dining
• Home improvement
• Transportation/fuel
• Grocery
• Retail
• Other

Spending by Generation

• Millennials: $20.0k
• Non-Millennials: $24.8k

• 6%
• 12%
• 16%
• 3%
• 12%
• 15%
• 19%
• 17%
• 7%
• 10%
• 11%
• 6%
• 11%
• 18%
• 20%

Average Age of Major Life Events

Source: U.S. Department of Labor & Commerce; Wells Fargo Securities
First Marriage Males: 2015 @ 29.2 Years
First Marriage Females: 2015 @ 27.1 Years
First Child: 2013 @ 26.0 Years

Lighting of Choice among 2016 WSER Finishers

Source: Western States 100-Mile Endurance Run Runner Survey

Princeton: 13.6%

Fenix: 2.2%

Black Diamond: 26.5%

Other: 5.7%

Petzl: 55.1%

Usage of Wireless Network in Stores

Source: Retail Systems Research

Outdoor Participation by Age

Source: Outdoor Industry Association

Persons 18-34 by Relationship to Head of Household and Presence of Children (November 2015)

Source: Nielsen
AGE (YEARS): 18 19 20 21 22 23 23 25 26 27 28 29 30 31 32 33 34

Dependent Adults

On Their Own

Starting a Family

Extent to Which a Brand’s Social Media Presence Influences US Social Media Users’ Holiday Purchase Decision Ages 18 and Up

Source: G/O Digital

A factor among other things: 18.9%

Has some influence but not overly important: 29.1%

Irrelevant: 44.7%

An Important factor: 7.4%

Actions That Make People Follow a Brand on Social Media

Interested in Their Product/Service: 73.4%

Offered an Incentive: 58.8%

Friends Follow/Like Their Content: 51.3%

Interested in Promotions: 42.2%

Interested in Their Industry: 41.5%

They’re Entertaining: 25.1%

To Communicate with Brand: 21.0%

Likelihood of Buying from a Brand People Follow on Social Media

Source: Sprout Social

NO CHANGE: 37.8%

LESS LIKELY: 3.8%

MORE LIKELY: 57.5%

2015 Participation in Outdoor Activities by Age

Percent of U.S. Adults 6+
Source: OIA

20%
10%
0%
30%
40%
50%
60%
70%

2015 Participation in Outdoor Activities by Age

– Age 6-12
– Age 13-17
– Age 18-24
– Age 25-44
– Age 45+

Peak IL R (BW.S.-1)
– SRFS
– SFFS
– MFFS partial
– full MFFS

0%
5%
10%
15%
20%
21.4%
20.7%
16.1%
19.7%
20.4%
25%

All cases
– All cases excluding physicians and executives

Jobs paying:
– $30k or less
– $50k or less
– $75k or less

Replacing employees is costly for companies’ bottom lines
Source: Center for American Progress; analysis of 30 case studies on the cost of turnover from 1992 through 2007

Percent of Salary
Economic Value to the Organization
Cost to Value of an Employee

Source: Bersin by Deloitte

– New Hire
– Onboarding
– Training
– New Assignment

Time
Employee Engagement Recognition Development Great Management
Discretionary Effort from High Engagement

“Return Zone”
The organization is benefitting from you

“Investment Zone”
The organization is investing in you

150
125
68
1398
7237

No wireless network available in store
– Wireless available only for receiving and other inventory control related tasks

Wireless available throughout the store for performance management POS & product related tasks
– Wireless available for customers

2016
2015
80%
70%
60%
50%
40%
30%

2006
2007
2008
2009
2010
2011
2012
2013
2014
2015

Males
Females

– 6-10
– 11-15
– 16-20
– 21-25
– 26-30
– 31-35
– 36-40
– Age 41-45
– 46-50
– 51-55
– 56-60
– 61-66
– 66+

Source: JPMorgan

Spend category distribution by generation (credit + debit cards 2015)

– Travel
– Experiences 34%
– 28% Entertainment
– Dining
– Home improvement
– Transportation/fuel
– Grocery
– Retail
– Other

Millennials
– $20.0k

Non-Millennials
– $24.8k

6%
12%
16%
3%
12%
15%
19%
17%
7%
10%
11%
6%
11%
18%
20%
19%
8%
31%
19%
25%
51%
25%
23%
19%

Inside Outdoor | Winter 2017

56

Floor Space
References from previous employees are valuable. A potential employee at this retailer begins with a screening by the human relations department to make an initial determination if the applicant is a potential fit for the opportunity available. From there the process continues.

Applicant Interview Process

The applicant would be interviewed by the general manager and finally the department manager. Throughout the process all interviews center around compliance with the core values. Any deviations or doubts from any interviewer can squelch the deal. Since most hires come from referrals from current employees the prospective employee should already know a bit about the organization and already want to work there.

Compensation and Performance

Living by the saying that “if you pay peanuts you get monkeys” this retailer chooses to pay a generous commission which is adjustable annually due to performance. Store managers also use a weekly checklist for each employee designed to make sure that the salesperson is focused on doing the right thing and offering superb customer service. A perfect score at month’s end will earn the employee a bonus in addition to other incentives and spiffs that may be offered at management’s discretion.

Retailer Best Practices

Most retailers agree that any deviations from what historically is proven to work is probably not going to end well. Don’t shortcut the interview process don’t make any quick decisions and pass if there are any doubts. There are no guarantees but decent pay including the potential for incentives and bonuses coupled with an enjoyable work environment and good chemistry with your fellow associates goes a long way toward finding and keeping good employees.

About the Author

Sayner is the author of “Retail Revelation-Strategies for Improving Sales Margins and Turnover” available from Amazon. He can be reached at RSayner@rmsa.com.
Winter 2017 | Inside Outdoor 57

Summary

The article discusses effective strategies for finding and retaining good employees emphasizing the importance of a thorough interview process and adherence to company values. It highlights the necessity of understanding job descriptions conducting multiple interviews and ensuring alignment with core values to reduce turnover. Offering competitive compensation and maintaining a positive work environment are also crucial elements in retaining staff.

“If you pay peanuts you get monkeys.”

Real-World Examples of Finding and Keeping Good Employees

Here are some practical examples where companies have successfully implemented strategies to find and retain good employees.

• A retail chain conducts a thorough interview process involving multiple stages and key management personnel to ensure candidates align with company values and understand the job requirements. This helps in reducing turnover by ensuring a good fit from the start.
• A tech company offers competitive salaries and performance-based bonuses to attract top talent. They also provide regular training and development opportunities which increases employee satisfaction and retention.
• A small business emphasizes its core values during the hiring process and seeks referrals from current employees. This approach helps in building a strong team culture and reduces the risk of hiring individuals who do not fit well with the company ethos.

Discover Proven Retail Strategies!

Explore expert insights and actionable advice in
Ritchie Sayner’s renowned book:
Retail Revelations – Strategies for Improving Sales Margins and Turnover 2nd Edition.

This must-read guide is perfect for retail professionals looking to
optimize their operations and boost profitability.

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