Rallying the troops

Retailers need to inform staff about their business plans for 2010 after a survey revealed the majority of workers across UK industry do not feel equipped to deal with their job in the new year.

In the poll by YouGov, 24% of respondents stated they did not think senior managers had clear vision with regards to the future of the business. In addition, only one in five employees said management had clearly communicated 2010 objectives to front line staff.

The online survey was carried out across various sectors and responded to by more than 2,000 working adults, 182 of whom work in retail.

Informing staff of future plans can have a positive impact in stores due to the effect it has on employee attitude to customer service, says John Lewis head of internal communications Jane Beine.

“Employees should feel a sense of responsibility for the success of the stores,” she says. “It is important for them to know the parts of the business are doing well and where things could be better.”

The retailer’s employees are its shareholders and therefore communicating the future direction of the business is paramount.

Beine says: “It is our employees’ absolute business to know what is happening with the company. Last year when John Lewis announced its three-year plan, our board members personally told our 29,000 staff in meetings across the country.

She added: “The power of those board members delivering the news to front line staff was incredible.

It showed our staff how much they matter to us.”

Engaging with staff can result in an annual profit increase of £1,500 per employee, according to the Department of Business and Skills. Meanwhile, disengaged staff cost the economy between £59.4bn and £64.7bn in 2008.

In addition, communication during the recession is more important than ever if retailers want to keep staff motivated.

Chartered Management Institute deputy communications director Jo Whitbourn says: “Employees are going through a difficult time. They will be worrying about what is coming next and retailers need to be open with them.”

She added: “A lot of people find it difficult to cope with change and you have to keep people motivated. Employees are under more stress than ever. They might want to get involved in the decision-making process and they should be given the opportunity.”