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How to find and keep good
employees is a question sure
to garner an impassioned re-
sponse from any retailer to
whom it is posed. For sure,
there are no easy answers.
From discussions I’ve had with
retailers on this topic one thing
is very clear: the interview pro-
cess is the most crucial step in
hiring and retention process.
If you were to look back at
good hires, I believe you would
find that they all had impres-
sive interviews and all seemed
likely to adhere to company
values and have a full under-
standing of the job being of-
fered. Conversely, when short-
cuts are taken during the inter-
view process or circumvented
in some other way, potential
trouble often lurks ahead.
One retailer I spoke with in-
sists on two to three interviews
over multiple days with key man-
agement 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 descrip-
tion and time commitment are
essential components that must
be covered and well document-
ed. 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!
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 of-
fers 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 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
the needs and overall mission
statement of the company, but
a list of five to 10 key points
that are central to the core of
the organization should be ad-
hered to. Obvious due diligence
such as background checks,
including criminal history and
drug use, can also be help-
“If you
pay peanuts,
you get
monkeys”
Finding and Keeping Good Employees
FLOOR
SPACE
By
Ritchie
Sayner
Resultant ILR
Vertical ILR
0
20
40
60
80
(Peak IL R (BW.S.-1)
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
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 toValue of an Employee
Source: Bersin by Deloitte
New Hire
Onboarding
Trai ing
New
Assignment
Time
E ployee 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
Source: OIA
Resultant ILR
Vertical ILR
0
20
40
60
80
100
(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
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 turnove
from 1992 through 2007
Percent of Salary
Economic Value to the Organization
Cost toValue 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
Inside
Outdoor
|
Winter
2017
56