Finding and keeping the best

A high turnover of staff is expensive in more ways than one - it’s costly to keep replacing workers, and a store staffed by unmotivated people generally won’t have great customer service.

The issue is a pertinent one for retailers, with store staff being more likely than many to leave a new job quickly. The first challenge is to decide if you actually have a problem with high turnover by finding out the average figures for your sector, according to Dennis Reid, chairman of consultancy RPS Global. It may not be possible to get staff turnover details below a certain level because of the nature of the work.

Jane Leadbetter, an HR consultant who has worked for Harrods and is currently at London department store Liberty, says it’s important to find out when people are leaving. If it’s six months after they started, it suggests a problem with the recruitment process or the way they were welcomed. Reid says that about 80% of turnover problems can be addressed with a better recruitment process. He advises coming up with a profile of the right kind of employee for the company, by looking at the best staff and using their good points to shape the profile.

Leadbetter says: “If people are leaving after a year, it’s likely to be because of the actual job. After three years, it’s likely to be down to a lack of career progression. If this is the case, you need to look at what you’re doing to promote people and improve performance management.”

She says that staff turnover problems can become a vicious circle. Employers are so desperate to have people to cover the store floor, sufficient time is not given to recruit the right people. Once this happens they either leave or the company has to spend time managing them out, and so the cycle continues.

Instead of recruiting too quickly, she suggests making sure the nature of the job is thoroughly explained to new recruits. “It’s important to make it clear at the beginning that the job involves shift work, and explain to people that as we come up to Christmas, for example, they’ll be working while everyone else is partying. And no matter how great a retailer is to work for, standing up all day can be a bit of a shocker.” In addition, explain that if a store isn’t closing until 9pm they won’t be getting home until late. But, adds Leadbetter: “For some people it’s wonderful to work later if they don’t have to get up early the next morning.”

Liberty has a presentation for potential candidates that highlights what is great about working there and provides a realistic view of what to expect. “This enables candidates to make a better decision of whether it is for them or not,” says Leadbetter.

“People can come to a new job a bit unsure - excited but scared at the same time. The employer needs to make them feel valued and make them see where they fit into the big vision of the company. For anybody in any job it’s a sense of worth that keeps them there.”