Keeping stores staffed is often the biggest challenge retailers face—it doesn’t have to be.
By Roy Strasburger
It is a call I dread.
Around 11 o’clock in the evening, the phone rings. On the other end of the line is a store employee who says that she really has to go home at the end of her shift because her child is sick. The problem is that her replacement, the person working the next shift, hasn’t arrived at the store and has not called in. The employee asks me what she is supposed to do as she needs to be leaving in fifteen minutes and she could not reach anyone else.
Not the end of the world, but a recurring frustration.
The employee component has always been the most challenging, and the most rewarding, part of retail operations. It is rewarding because it is an opportunity to teach people new skills, build confidence, help feed their families and provide them with a platform from which they can move up in the company.
It is challenging because, let’s be honest, we are dealing with human beings and all the variables (rational and irrational) that go with it.
Staffing is a major issue and was the subject of the January Convenience Leaders Vision Group (CLVG) meeting. Michael Sansolo presented the new Coca-Cola Retail Research Council (CCRRC) study that looks at the scarcity of labor and the need to retain employees. It was an enlightening discussion, and you can find the Vision Report that captures it at www.tvgsolutions.com.
Finding employees has been a big challenge for most of my career. The obstacles include the hours that need to be worked, the tasks that need to be done during the shift and the perception that working in a c-store is a menial and dangerous job.
The CCRRC report defines those challenges and adds some additional factors: the small percentage of the working population that is interested in working in the convenience industry, competition with the gig economy and the lack of perceived career path opportunities. These issues, combined with a tight labor market with low unemployment, means that finding qualified people to provide excellent customer service, represent our brand, and protect our assets is becoming harder.
The CCRRC report suggests several strategies for attracting new employees. First, you have to offer a wage that is competitive with other retail locations in your area. Everyone is looking for employees, and companies with the best pay and benefit packages that people want (such as 401(k) contributions, and mental health and financial counseling) have a head start in finding recruits.
Second, you need to emphasize the advantages of the flexible work hours that a convenience store can provide. Since gig work allows people to customize their work schedule, we need to do the same in our industry. This may mean rethinking what we mean by “full time” employees. Perhaps they work two, four-hour shifts per day rather than a straight eight hours.
Third, we need to emphasize the job skills (customer service, technology, food preparation and safety, etc.) that can be acquired while working in a front-line position and that these skills can be leveraged into longer-term career opportunities at your company. If you are large enough, show that there is a reasonable career path from a part-time cashier to a full-time member of the operations, marketing, accounting or IT team.
Fourth, tell everyone the mission of your company and how you are helping the greater good. Applicants want to know that they are joining a company that will enhance the community and that they will be contributing to a worthwhile cause.
If you don’t have a mission, get one—and be serious about it. You can help the community or the neighborhood by providing resources, contributing to local events and organizations or working to become a more sustainable business. I want to be very clear on this—don’t say you’re doing something and then not do it. That is the fastest way to ruin your reputation with your employees and your customers.
Finally, and most importantly, it is about what happens when the person decides to join your company. You need a good, comprehensive onboarding process so that the employee knows what is expected of them and what is expected of you. Critical to this, and it came up several times in the CLVG meeting, is that the store manager that will make, or break, the employee. The key to a successful store, high employee retention and low shrink is a manager that is engaged and cares.
If you follow these suggestions, there is a good chance that you will have enough quality applicants to keep your employee rosters full and your stores fully staffed and open. That way you won’t get the call in the middle of the night about an unmanned store.
Roy Strasburger is the CEO of StrasGlobal. For 35 years StrasGlobal has been the choice of global oil brands, distressed assets managers, real-estate lenders and private investors seeking a complete, turn-key retail management solution.
