24 MAR-APR 17
How to find and keep good employees is a topic sure to garner an impassioned response from any retailer who is posed the question. One thing is certain: There are no easy answers. From the discussions I have had with retailers on this topic another 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.
One Retailer’s Method
One retailer I spoke with insists on two to three interviews over multiple days with key management personnel. He strongly encourages all retailers to know the laws in their state and to 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 as is including signed statements from employees stating that they have read and understand all aspects of their job descriptions. This particular merchant has an initial review after ninety days and annually thereafter. Do not skip the annual review!
With regard to experience prior experience is obviously a plus – and is of course essential for key positions such as buying and store management. The retailer mentioned earlier notes that older employees offer stability and work ethic but that 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.
Another Retailer’s Method
Another store owner I spoke with who enjoys low employee turnover emphasizes that any potential employee must be
Able to Relate and Support Core Values
The core values of the company will vary based on the needs and overall mission statement of the company. A list of five to ten 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 as can references from previous employers.
Screening and Interview Process
A potential employee of this retailer begins with a screening with the human relations department to make an initial determination if the applicant is a potential fit for the opportunity available. From there the applicant would interview with 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 they already know the organization and already want to work there.
Compensation and Incentives
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 for a month earns the employee a bonus in addition to other incentives and spiffs that may be offered at management’s discretion.
Best Practices
Most retailers agree that any deviations from what historically is proven to work are 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 fellow associates goes a long way toward finding and keeping good employees.
Ritchie Sayner
Ritchie Sayner is vice president of business development at RMSA Retail Solutions and author of Retail Revelations: Strategies for Improving Sales Margins and Turnover available through Amazon. He can be reached at rsayner@rmsa.com.
Finding and Keeping Good Employees
Published in the March/April 2017 issue of Shoe Retailing Today Copyright © 2017 National Shoe Retailers Association Tucson AZ www.nsra.org. All rights reserved.
Summary of Employee Hiring and Retention Strategies
The article emphasizes the importance of a thorough interview process as a critical step in hiring and retaining good employees. Retailers should conduct multiple interviews ensure candidates align with company values and maintain detailed records including signed job descriptions. Offering competitive compensation and fostering an enjoyable work environment are also key strategies to minimize turnover.
“Don’t shortcut the interview process don’t make any quick decisions and pass if there are any doubts.”
Real-World Examples of Effective Hiring Practices
The following examples illustrate how different companies have successfully implemented strategies to find and retain good employees by focusing on a rigorous interview process and alignment with company values.
- A well-known retail chain conducts a multi-stage interview process involving different levels of management to ensure candidates align with the company’s core values and understand the job requirements. This thorough approach has significantly reduced turnover rates.
- A tech company emphasizes cultural fit by integrating core company values into every stage of the hiring process. Candidates who demonstrate a strong alignment with these values are more likely to be hired leading to a cohesive and motivated workforce.
- A financial services firm offers a structured compensation package with performance-based incentives. This approach not only attracts skilled professionals but also encourages long-term commitment and high performance among employees.
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