The Problem Employee turnover was escalating and store managers were becoming increasingly frustrated. Employees were leaving within a short period of time after being hired and we didn’t understand why. Customers were also voicing concern, complaining about service and threatening to shop elsewhere. There were those who thought that employees only cared about their pay and benefits and really weren’t committed to the company and going the extra mile for customers.
With a reputation for outstanding customer Service on the line we had to take action. It was unacceptable to accept the status quo of rising employee turnover and the consequences of customers deciding to shop elsewhere.
The Solution: We started asking questions and really listening to what employees had to say. We learned from them what factors they considered to be important when they were making their decision to stay or leave and what would motivate them to go the extra mile.
They told us among other things that the training they received did not adequately prepare them for providing outstanding customer service. They also said that managers were often not respectful and didn’t listen and showed favoritism
We listened to what employees had to say and made significant changes to ensure that we were selecting the right employees, giving them the training they needed to be successful, provided feedback, and made sure they received recognition for going the extra mile for customers.
Management selection was critical to success, so the focus became one of selecting and developing effective leaders with an objective system for identifying potential managers.
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Change Initiatives Included: Leadership Selection: focused on competencies and behaviors more than experience Leadership Development: Leadership training Employee Selection: Selecting the right employees Orientation: values, traditions, heritage Employee Training: the job itself and product knowledge Extra Step Training: customer service training and employee recognition: Ensuring that customers return
Money isn’t a motivator We discovered that motivating and retaining employees wasn’t about money at all. It was more about providing the right training and helping them be fully prepared to serve customers. To gain their commitment employees said that the quality of the relationship they had with their manager was a significant factor. Employees were more likely to stay and be fully prepared to go the extra mile for customers when they had managers who listened to them, treated them with respect, were fair, and gave recognition.
Results Employee turnover reduced to just 24% One third the national average . . . $2,000,000 annual savings
A workforce committed to customers and going extra mile
Customer compliments about their in-store experience consistently out numbered complaints
Customer’s not only returned but recommended “their DIerbergs store” to friends
Recognized in the community as an employer of choice Nationally recognized by Arthur Andersen (Accenture) for achievements in human resources, customer loyalty & employee relations
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