You’ve certainly experienced high turnover at the least convenient time. It happens with every retailer.
But, you can certainly minimize this problem and make it one that rarely happens at your store.
You may feel tempted to rationalize,”Well, that’s how we save money. We pay a certain rate. And if an employee doesn’t work out, we simply find someone else.”
That works now as a short-term reactive approach. But, what are the long-term costs of such decision-making?
It’s kinda like putting a Band-Aid on a broken leg.
Case in point: Costco pays its average employee $20.89 versus Walmart’s $11.83, reports Business Insider.
But, that’s not the main point.
Costco’s sales per employee run double that of Walmart’s. And Costco can afford to do this because of that, and also because it runs a much leaner warehouse than Walmart, which leads to far lower overhead costs.
And then, to top it off, while Walmart and Target have struggled with a lull in sales in recent quarters, Costco continues to report strong sales results.
So, it simply makes sense: paying employees more leads to attracting happier workers who do a better job and make your customers ecstatic so they can’t wait to come back.
But it’s not all about money. Money is simply a way of doing this:
showing your employees you care about them and that they’re important to you as people.
And here’s what to do to make turnover a minimum:
1. Hire For Attitude
Finding an employee with the right skills, experience, and talent is easy. You’ll have plenty of highly qualified candidates.
When you interview, focus on attitude. Is your employee a self-starter? Do they take responsibility for their actions or blame others? Do they have a team-first or me-first attitude?
Do they want to learn or do they already know everything?
It’s clear what qualities you want. The challenging part lies in judging what the candidate’s true character really is.
2. Work with Employees to Tailor Their Jobs To What They Like to Do
No job is 100% perfect. Every job has its grind or drudgery. But to the maximum extent possible, keep your employees doing what they enjoy and excel at.
For example, if you have someone in sales constantly covering the cash registers, redistribute labor so they spend more of their time on the floor interacting with customers. Keep people who enjoy the cash registers working that position, or hire more workers to cover times of shortage.
Use this attitude for all employees at all levels of your organization.
3. Pay Well Above Industry Standard
Yep. Money’s a part of showing your appreciation and reducing turnover too. It just can’t be the only thing you focus on because employees value other rewards (praise or increased responsibility) too.
But, if you want to keep the best for a long time, you do have to pay them well. And that includes everyone – from the C-Level down to the janitors.
Include your perks in this. Some companies have nap rooms, on-site daycare, flex time, or free gym memberships.
Work with your employees to create a perk package that’s attractive to them.
Turnover never has to be a crisis. If it’s gone to that level at your company, you’re not getting something right.
So consider these tips, and work with your employees to create a workplace they’d never want to leave.