boosting productivity and performance in retail with positive … · 2019-03-06 · 233% greater...
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Boosting Productivity and Performance in Retail with Positive Employee Engagement
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Highly successful retail chains not only invest heavily in store employees but also have the lowest prices in their industries, solid financial performance, and better customer service than their competitors. 1
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Shopping habits are in a state of constant
change. As a result, so is the role of the
physical store - and its employees.
Combining economic uncertainty with
growing consumer expectations, this new
era heralds a rise in competition to attract
and retain the best staff; employees that will
be ready and willing to tackle these new
pressures.
The more savvy retailers understand the need
to be flexible, adaptable, and innovative in
order to survive. They also know that amongst
their best assets are their people.
By listening to their feedback and finding out
what they are seeing, hearing, and feeling on
the shop floor, retailers can access invaluable
and actionable insight.
The result? Powerful knowledge that can be used to
improve the customer experience and secure
future success.
To engage staff and maximise their value in
this way, it’s important to firstly understand
how their roles are changing.
Today’s competitive retail landscape01
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02 The changing role of retail staff
From new store formats to online fulfilment
centres, retailers across segments are
either implementing or contemplating
some level of transformation to avoid the
risk of store closures. As bricks-and-mortar
retailers evolve, the importance of the
digital workplace will increase - calling for
employees with strong capabilities:
Demand for sales and marketing skills
Reports show that customer service and sales
skills are in much higher demand compared
to a decade ago2. This is due to a push from
retailers across sectors, putting their staff
at their core when it comes to re-defining
strategies to stay competitive. The smarter
retailers recognise their employees as being a
key ingredient to differentiation.
Not only do they represent the brand, they
are the ones capable of building rapport with
customers, leading to long-term relationships
and customer loyalty that allows for effective
marketing of products and services.
Communication is key
When it comes to improving in-store customer
service, retailers require staff to possess proven
communication skills; as well as collaborative
teamwork skills. More brands are investing in
innovative technology to increase customer
convenience. Because of this, staff are being
re-allocated to provide personal assistance,
advice, and expert product knowledge.
The drive for employees to become more
proficient as marketers means retailers are
also looking for organised staff able to multi-
task and with strong digital skills.3
Shifting expectations
Employee expectations are also shifting
and for many, being paid is no longer the
number one motivator. Today’s staff are
seeking to advance their education, personal
development, or transition into other roles.
They expect more from their managers in
terms of support and leadership too. In fact,
poor management is the biggest reason for
staff to potentially move roles, with as many
as 49%4 saying this is the reason they are
considering leaving.
Retailers who offer ongoing training and development opportunities with a clear pathway to progression may see a reduced turnover rate, with greater engagement from their staff.
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Thanks to advancing technology, today’s staff are
increasingly becoming responsible for delivering
across both physical and digital channels.
Additionally, because they have access to
solutions that provide a wider inventory network
than what’s available only at their store,
expectations of what they can sell have also
increased.
As retail continues to meet shifting trends, staff
are playing an integral part in the omnichannel
world. Not only can they enforce brand
reputation and use product knowledge to boost
in-store customer experience, they can assist
with duties across channels.
With retailers implementing systems to enable
a seamless, omnichannel customer experience,
staff are expected to be able to sell anything
to anyone – from anywhere. Mobile technology
is being harnessed as a key facilitator in this
scenario; arming staff with detailed product
information including stock availability while
allowing them to be accessible from anywhere
on the shop floor.
With access to customer order history and
personal preferences, staff can offer customised
recommendations as well as professional
knowledge to meet the exact needs of the
customer.
This again creates a highly tailored and memorable experience for the shopper, strengthening brand reputation and keeping them returning.
03 The digital age: New Era, Big Impact
Technology is one of the biggest
drivers when it comes to how retail
staff roles are changing. Gone are
the days when in-store employees
were merely expected to stand at a
till and serve.
Or sit in the stockroom with a
clipboard, painstakingly checking
off inventory for hours on end while
customers look for assistance.
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While technology will always influence the
evolving role of employees, it is the staff
themselves who are key to delivering the ultimate
retail experience.
They are ones who connect with customers and
represent the face of the brand. Companies with
highly-engaged employees undoubtedly perform
better in a number of ways, with reports showing
233% greater customer loyalty, and a 26% greater
annual increase in revenue5.
However, to serve customers with enthusiasm and
consistency, staff need to feel connected, valued,
and motivated. Many retailers are still failing to
achieve this. With so much focus on the customer
journey, they are forgetting to understand things
from their employees’ perspective.
The drive to deliver a more convenient customer
experience and increase profit combined with
competitive demands, may in many cases, simply
drown out staff needs. If each team member has
the potential to act as a brand ambassador; should
they be neglected, what are the implications?
Understanding the importance of employee engagement
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05 Employee Dissatisfaction: the risks
Maintaining an outstanding brand
experience for customers depends on
seamless interaction at every touch
point. However, it’s the human touch and
subsequent perceptions that can pose as the
biggest risks to success:
Brand Reputation
In the social media age, a bad day at work
can quickly be shared with hundreds of
connections online. Regardless of the number
of employees, there is an ever-present risk
of the situation going viral. Staff are also
constantly transmitting their experience to
customers. From facial expression to body
language, tone of voice to speed of response.
Even if non-customer-facing, slow stockroom
teams or disinterested call centre agents can
directly impact the strength of your brand
promises and ultimately, customer satisfaction.
Technology Return on Investment (ROI)
From magic mirrors to Artificial Intelligence
(AI) assistants, there is no doubt technology
can greatly enhance the customer experience.
However, should customers meet a disgruntled
staff member who hasn’t been trained on
the new system, what should be a positive
experience may soon turn sour. The return on
any new tech spend will greatly depend on
supporting staff onto new systems, to achieve
maximum benefits.
High Staff Turnover
The less engaged a staff member feels, the
less likely they are to feel a sense of loyalty to
their employer. Without gaining their feedback
it’s impossible to know how happy or unhappy
they are, or what motivates them.
Chances are, if they’re frustrated with some
aspect of their role and feel like no one cares,
they may already be looking for their next job.
Not only does high staff turnover mean costly recruitment and training implications, it also requires extra resource and causes business disruption.
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Value employees as individuals
One of the biggest hurdles when it comes
to retail staff engagement is the emotional
disconnect many employees feel from the
company. As well as physical separation, this
can also occur when staff view themselves as
inconsequential and therefore replaceable.
By creating employee-focused initiatives such
as training and collaborative projects, or
personalised recognition programs with
customised reward options, managers can
alleviate this issue. Solutions like Microsoft
Dynamics 365 for Talent allow managers
to personalise this experience. By setting
up an onboarding checklist with individual
activities, and tracking response and
performance, managers can ensure new staff
are productive and impactful throughout
those first few critical months – and set up for
continued success.
Keep staff connected
Engagement comes from a sense of
community, as well as a valued purpose. For
retailers, this can be a challenge, particularly
when staff are spread out across multiple
branches, warehouses, and offices.
Once onboarded, it is vital to retain staff by
keeping them informed and engaged through
ongoing communication. Organisations with
connected employees have seen productivity
improve by as much as 25%7, proving the
value in strength of community.
Microsoft’s StaffHub gives managers a way
to quickly distribute essential information
to their team, such as policy guides, news
Retailers need to understand the importance of their workforce, to avoid the risks of employee
dissatisfaction. Their staff should be treated as an integral part of brand success and needs to
play an active and positive role in building customer relationships and delivering exceptional
in-store experiences. The question is, how do retailers achieve this?
06 How to engage the workforce
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Microsoft’s StaffHub gives managers a way to
quickly distribute essential information to their
team, such as policy guides, news bulletins,
meeting invitations, and videos. This fast and
reliable way to send quick messages also
allows staff to message each other directly or
send to the entire team.
By provisioning a platform that gives
employees a voice, retailers can make it easier
for disparate teams to share ideas and offer
feedback, helping them feel integrated as part
of the wider business network.
Functionality such as schedule management
provides the ability for staff to view upcoming
shifts as well as any important notes. They can
also see who else they’ll be working with, or
request to swap shifts.
Make the staff journey matter as much as the
customers
In order to keep staff engaged, managers
should make a conscious effort to develop a
journey that acts as the roadmap for all team
members.
This may include everything from short term
targets to long term goals, daily activities to
quarterly reviews.
Dynamics 365 for Talent enables managers
to do exactly that; with continuous learning
and education guides designed to develop
employees, managers can create an
environment of growth with a personalised
career path.
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The onboarding process is a great place to start, with 53% of HR professionals agreeing employee engagement rises when onboarding is improved.6
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Staff need to understand customers at a deep
level, to help provide a better service whether
on the shop floor, from head office, or in the
call centre. Providing knowledge about the
company also helps encourage a culture of
transparency, contributing to a more positive
employee experience.
Dynamics 365 for Talent can ensure regularity
of training, as well as completion of any
necessary certifications, all available through
an app that staff can easily access via mobile
devices.
Trust employees to do a good job
Staff who are given autonomy in their
professional interactions to create their own
unique value-added customer experiences will
feel even more compelled to do a good job.
By sharing resources that may help when faced
with a difficult situation, managers can ensure
they can handle challenging situations with
more confidence.
As much as retailers need a well-planned
customer journey to engage customers, their
employee journey is just as important to keep
staff engagement and productivity levels high.
Align staff and company values
The more buy-in an employee has in its
company’s values and beliefs – the more
motivated they’ll be to provide customers with
the best possible experience.
Staff are increasingly wanting to be part of a
business with distinct values; that cares about
its customers, staff, and community. With 85%
of employees saying they would stay longer
with a business that demonstrated a high
level of social responsibility9, it’s no wonder
more retailers are looking to get involved in
community issues.
While some partner with local non-profits
to host fundraising events, others allow
employees to select a charity for which they
institute a donation period – which is then
matched by the retailer.
This can also benefit the bottom line, as 55% of consumers10 indicate a willingness to pay premium prices to retailers that prioritise social and environmental engagement.
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To succeed in today’s challenging retail
environment, retailers need to unlock their staff
capabilities to remain one step ahead of the
competition.
As the pace of change increases, they must also
embrace the right technology that allows them
to fuel change and empower their teams. Tools
that enable businesses to increase employee
engagement will serve to develop a high
performing culture and make the organisation
more customer-focused.
By championing personal development and
creating a trusted sense of community, retailers
can develop a loyal and driven workforce; a
powerful asset when it comes to increasing
customer satisfaction – and the bottom line.
Innovating employee relationships, securing brand success
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See what your business can gain by harnessing
the power of Microsoft Dynamics 365 to
boost the performance and productivity of
your employees to deliver a great customer
experience.
Contact HSO
Sources: 1Retail Drive | 2NRF | 3NRF | 4Independent | 5Rise People | 6Bambu | 7Dynamic Signal | 8Rise People | 9Rise People | 10Forbes
HSO UK
+44 (0)20 3128 7767
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1st Floor, Enterprise Point, Altrincham Road, Sharston, Manchester. M22 9AF | T +44 (0)20 3128 7767 | [email protected]
Since 1989, HSO has been a Microsoft Solution integrator and has become a successful ICT company with more than 550 employees and offices in Europe, North America and Asia. HSO supports local and international companies in retail, wholesale distribution, manufacturing and service with their digital transformation journey. The foundation for this is Microsoft Dynamics 365: A complete platform of CRM, ERP, Office 365 and BI software. HSO takes care of the implementation, optimisation and 24/7 support of these cloud solutions. HSO belongs to the Microsoft Dynamics Inner Circle and is proud to have been named the ‘most customer-oriented Microsoft partner’.
More information about HSO can be found at www.hso.com. Follow us on Twitter via @HSO_Tweets.
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