Challenges Persist in HR Management
Despite the fact that c-stores are investing capital and resources on recruiting and onboarding, many chains still struggle with staffing issues and high turnover, according to CSD’s 10th annual HR Study.
The convenience store industry has come a long way over the past decade in terms of recruiting, training and retaining great employees. But the results of the 10th annual Convenience Store Industry Human Resources Survey indicate there’s still quite a bit of work to be done.
Among the survey’s key findings is that industry turnover is on the rise and recruiting managers remain frustrated with the onerous process of finding good employees. The survey, conducted jointly by human resources expert Mel Kleiman, of Humetrics, and CSD, found once again that paying higher wages isn’t nearly as important as respecting and recognizing the hard work employees put forth daily.
This is a powerful message that shows if you’re simply trying to throw money at employees in the hopes of creating a great corporate culture, it simply won’t work. There will always be someone else who can offer more money or a better opportunity. Without that personal relationship with your employees, loyalty is fleeting.
The byproduct of a great relationship with your employees is that you are incrementally building the foundation of an outstanding corporate culture. When good people want to work for you, the recruiting process is easier, human resources costs often go down and the overall quality of your brand goes up. There really is no downside.
Convenience Store Decisions and Humetrics first collaborated in 2009 to provide insight into the industry most challenging problem, finding, hiring, retaining and motivating employees.
This key benchmarking survey enables chains of all sizes to evaluate their recruiting, hiring and retention performance to enhance their competitive viability. The survey also examines the industry’s current pay scale for frontline hourly employees and managers allowing hiring managers to understand exactly how their compensation packages stack up with others in the industry.
This year, the key takeaways include:
• As has been the case every year since 2009, staffing issues continue to be the biggest industry-wide challenge.
• A majority of respondents (71%) reported their voluntary termination rate was greater than 50%. This means more than half of their new hires were not a good match for the job and quit.
• While hiring personnel seem to recognize the importance of hiring for attitude, they still report sky high involuntary turnover and attribute it to attitude problems.
A joint study by the Disney Institute and McKinsey & Company found that creating a memorable customer experience was “not magic, but method.” The CSD/Humetrics study backs up that claim. When you take an active role in making your employees feel needed, they become more engaged with your organization and more committed to your service goals.
This year’s survey underscores the convenience store industry’s underlying need to hire for attitude. If you want friendly service, hire friendly people. Think about companies like Southwest, Disney, Apple or any company known for its company culture. They aren’t trying to change people to fit what they are doing. They are putting in individuals whose attitudes fit what they do, and then they train them on the necessary job skills. The end result is quite noticeable.
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