How Do You Keep Retail Showroom Staff Motivated and Loyal? Seeking Advice!

Hi Friends, I am working as an HR head at a retail showroom. My problem is how to retain employees and how to continuously motivate them.

There are two parts to your query - the first relates to retaining staff and the second pertains to motivating them.

Let me begin with my comments on retaining staff and controlling the attrition rate. Being a retail outlet, your challenge is even more magnified since the employee profile you engage would largely display a tendency to change jobs whenever they get a slightly better salary. Apart from that, the stress of dealing with very demanding walk-in clients takes a toll on them. Often, they are also caught in the dilemma of being forced to maintain a pleasant, calm, and helpful attitude towards customers while their personal background and worries could be very challenging.

While the above observations are merely to put your problem in perspective, the issue of attrition has always been the bugbear of all HR professionals. Broadly, the reasons for attrition have by and large remained the same across industries, countries, and cultures, with issues like low salaries, poor work conditions, lack of motivation, ineffective management, frustration with the job itself, etc., taking center stage. Then there are other more personal reasons like the growing ambition of the individual, a need to balance work and home, an urge to get away from stress and toil and live a more sedate life, work pressure, bad bosses, etc.

However, we cannot generalize these issues because the issues that actually trigger attrition vary from organization to organization, industry to industry, and at a micro level from individual to individual. In a BPO, for example, the employees are by and large very young, and their motives for joining a BPO would drastically transform as they mature and their aspirations are higher. Similarly, the odd shift timings to suit overseas client requirements would at some stage not be viewed very kindly by those employees who believe they can find better alternatives. The point that I would like to emphasize is that you would have to study and analyze the reasons for attrition in your organization and then seek solutions to address those issues.

As a balm for your immediate relief, I am sharing a link sourced from this site, in which Amit Seth has given a host of suggestions to tackle attrition. You can access the same by clicking on this link https://www.citehr.com/51382-how-control-attrition.html.

Now moving on to the second aspect of motivating the workforce, the key is in ensuring that the work environment is appealing and pleasant. This means you have to work on the following broad themes:

- Make the workplace a fun place to be in. For example, ensure that the workplace is well-lit, the decor is pleasant, and at the same time, there is laughter and good cheer that energizes the environment, ensuring that friction, if any, is nipped in the bud. Ideally, have a Theory Y style of leadership culture, but in a retail setup, often it is Theory X that is practiced primarily due to the profile of the employees who require close supervision and urgent relocation of personnel necessitated by absenteeism, etc.

- Ensure that there is a professional work environment, e.g., ensuring that there are proper systems and adequate support from floor in charge to reinforce confidence in the employees. Job rotation is a must to give the employees variety in work, but this is rarely practiced since management would assume that the experienced and long-serving employees can offer better customer service. What they fail to appreciate is the monotony that the employee experiences.

- While work remains the fulcrum of the office, there is a life beyond work that craves attention. Make efforts to identify these and satisfy these needs, e.g., know a little more about the personnel's passions, interests, and hobbies, and where possible, give them an opportunity to share these. With a little creativity and daring, this can be implemented in innovative ways.

- Every individual values his/her individuality and self-worth. Work on meeting these small necessities. For example, respect their right to have a different point of view, don't make a mountain out of a molehill when mistakes are made, give feedback in an appropriate setting, etc.

Despite all this, there is a psychological tendency to equate bigger brands with a better job profile, greater job security, more growth opportunities, more valued work experience, etc. Obviously, the challenge for you then is to come up with innovative strategies to positively reinforce your employees' thought processes and mindsets and convince them of the benefits of a long-term association with your setup. The personal touch is the key, but the risk is they should not perceive you as being too nosy or interfering in day-to-day work.

You may also benefit from some contents of the following Inspirational and Motivational blogs in enhancing your own self-belief and confidence as well as motivating your workforce:

www.actspot.wordpress.com

www.poweract.blogspot.com

Best Wishes

There can't be a more comprehensive reply than what has been given by ACT. I am sure if all the suggestions are implemented, the attrition levels may slide down and employee motivation may increase.

Cost Considerations at Retail Showroom Level

But one has to weigh out the cost of incorporating these suggestions at a 'Retail showroom level'. If it were the total retail business with multiple showrooms at different locations, probably the Head HR could figure out which job positions are vital and for which arresting attrition is a must. For other job positions, he could have preferred maintaining a pipeline of candidates (found suitable) and churning this pipeline every 3 months (since some candidates in the pipeline may have opted for other organizations). This becomes a workable solution when requirements are large and a tie-up with some staffing agency eases the problem.

Motivation Initiative in a US Retail Showroom

In one of the retail showrooms in the US, I had observed a new concept of motivation. The photograph, by rotation, of different salespersons and others was flashed at the four entry points with the caption 'Meet our employee of the day'. My discussions with the management revealed that some employees featured only twice a year, while the best performers could be seen once a week. Even those responsible for the cleanliness of the stores could occasionally see their photographs. This was a low-cost motivation initiative based, probably, on the assumption that everyone likes to see one's own photograph at a public place.

As far as I know, if an employee is receiving a good salary on par with the same trade in the market, then, of course, non-monetary motivation techniques will work. However, if the employee is receiving even slightly less than the market rate, they will eventually look for better opportunities elsewhere. Monetary incentives in a systematic manner are the best motivators.

Determining Market Salary and Incentives

It is up to you to determine the market salary of a particular employee group. Since yours is a retail showroom, you can easily adopt a policy of incentives based on sales proceeds by individual employees. You can set the incentive percentage based on individual sales proceeds so that the sales personnel are motivated to achieve higher sales to earn a better percentage of incentive. It is advisable not to give the full incentive in the same month but to keep depositing it into the respective accounts of employees. Additionally, consider investing a portion of their incentive in their medical claim policy covering family members, a provident fund scheme (if not already in place), or some form of recurring deposit. This way, you have covered their medical emergencies and instilled in them the habit of saving. Do not forget to provide the necessary documents to employees, as it builds a sense of security and confidence that the management cares about them. Timely payment of salaries and incentives is an essential tool in motivating employees.

Employee Appreciation and Discipline

Appreciate employees in front of others, but avoid overreacting. This approach can help you earn their loyalty and respect. Never scold them in public; instead, call them into your office to explain and encourage them to improve. If an employee does not show improvement even after guidance, then consider taking strict action. This way, other employees understand that good performance leads to incentives.

General Meetings and Employee Support

Hold general meetings with your employees at least once every quarter to understand their priorities and see how you can assist them. Sometimes, a small gesture on your part can have a significant impact. For example, using your contacts to help them get their child admitted to school, secure an LPG connection, visit their home during happy and sad moments, or facilitate loan approvals from banks are some areas where you can offer support.

I am unsure how many of you agree with my views, but I have seen this approach effectively motivate and build confidence in employees.

Regards,
Vivek