THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Monday, April 10, 1995 TAG: 9504080175
SECTION: BUSINESS WEEKLY PAGE: 12 EDITION: FINAL
TYPE: Cover Story
SOURCE: BY STEPHANIE STOUGHTON, BUSINESS WEEKLY
LENGTH: Long : 206 lines
We won't name your store, but your sales associates were so rude we stalked out and pledged never to return.
If you're a business owner and just cringed at that statement, you may have good reason: Your employees may be turning off customers and contributing to a steep slide in sales.
With a shrinking pool of entry-level workers and an explosion in the retail industry, many employers have been tempted to hire the first guy or gal who saunters through the door - without checking references, without looking at skills and without testing aptitude.
It's a deadly combination.
``I was talking to this automotive maintenance company the other day,'' said Rob Masten, president of Masten Consulting Group in Chesapeake. ``This person came in applying for a management job in November. He came back consistently. In January, the boss decided to hire him. Two days later, he made off with the till.
``The boss did no reference check,'' he said. ``When you do those things, it just jumps out at you.''
Finding good employees is like picking through cantaloupes at the supermarket. Only a seasoned shopper can pinpoint ripe melons; the rest of us cut them open and groan.
But there a few retailers who seem to do it better. Why? They've realized that the traditional resume-and-interview process doesn't cut it, and they're willing to offer incentives to retain star employees.
Job consultants say retailers should plan for follow-up interviews and ask applicants to take integrity and aptitude tests. Some argue that job-matching - making sure the person will be content and able in the new position - should be an owner's No. 1 priority.
Finding the best workers . . . the first time
``I was training a girl last night, and I said, `Do you got on your walking shoes?' I'm like Speedy Gonzales. I don't just take care of my tables. If a customer asks for something we'll get it. If they need water refills, we'll get it. And you have to get dirty dishes off the table . . . You do a lot of walking.''
- Shannen Walsh, waitress, trainer and assistant manager at Outback Steakhouse.
Applicants to Outback Steakhouse, which entered this market several years ago, thought they'd drop off their resumes, do one or two quickie interviews, and secure the job.
Not quite, says Steve Miller, owner of the Outback Steakhouse in Virginia Beach's Kempsville section. ``Our interviewing process is a little bit longer,'' he said.
First, there's the initial screening when the applicant walks through the restaurant's door, and then four tests and two more interviews. ``We do a lot of reaction stuff like, `If the guest says this, what would you do?' '' Miller said.
Of hundreds of applicants interviewed when the restaurant opened two years ago, 70 were hired.
The extra investment has paid off. Outback Steakhouse has one of the lowest employee turnover rates among restaurant chains.
In addition to the interview and resume, business owners should develop a list of traits for a new or vacant position, according to a study by Arthur Anderson & Co. Employers should then analyze their star workers and see if applicants have the same traits and skills, according to a study designed for small businesses in Illinios.
Does the best person on paper match the position?
Not necessarily.
Consultant Rob Masten thinks retailers should dig deeper. Business owners' No. 1 priority should be ``job-matching,'' making sure an applicant will be comfortable and able to grow in the new position.
``People have historically hired employees based on two to three factors,'' Masten said. ``Traditionally, there are the resume and interview. Then, there's some sort of assessment on the person fitting the job and the image they want.
``There's no real effort to match the person to the job, or the job to the person,'' he said.
Masten says he's working with one local apparel retailer to test the speed and accuracy of applicants' learning processes.
``That's important on the retail floor,'' he said. ``If you don't have someone with the right mental abilities, they get frustrated because they're too slow. Too fast? Your mind might be somewhere else.''
Masten says employers should focus first on job matching, which he says leads to a more stable and content work force. He argues that job matching is more important than compensation.
``To be a good salesman, you have to love to talk . . . My wife has been trying for years to get me to get another job - to make more money. But I'm happy, and I'm never at a loss for words. I just love selling shoes.''
- Jay Winslow, 5-year employee of Hofheimer's Shoe Stores and a shoe salesman for 30 years.
Keeping sterling workers for a long time
Nothing is forever, but star employees will not be happy in their jobs if you don't allow them to grow or recognize the extra steps they take to make your business' sales soar.
The overriding reason for employee turnover is worker dissatisfaction, according to research by Arthur Anderson. Employees are discontent because their bosses don't allow them to make decisions or make them feel a part of the team, the study said.
The owners of The Quality Shop, which has three stores in Hampton Roads, recognize that their employees often know more about the business in many areas. Longtime salesmen like Tommy Bean can tell owners what their customers want and disagree over what products the stores should carry - unheard of in many national apparel chains.
Incentives also play into a successful business. Workers get commissions, benefits and stock - ``enough to make me retire comfortably,'' says Bean.
Money isn't everything, of course. Retailers also can consider employee recognition programs, days off or favorable scheduling.
And sometimes, a simple ``thanks'' will do. MEMO: What to reward:
Customer recognition of superior service
High sales
Top performance
High productivity
Community service
Employee suggestions
Loss prevention
Special projects (like developing customer database or shopping the
competition)
How to reward:
Paid day off
Gift certificate or merchandise gift
Medallion, pin or plaque
Savings bond
Letter from the owner
Luncheon
Cash bonus
Weekday work schedule as opposed to evening or weekend schedule
Recognition in company newsletter
Customer service awards
Source: Small Store Survival, Arthur Anderson & Co.
Best ways to hire and retain good workers
Determine the requirements and duties of a vacant or new position.
Examples include: minimum years of experience, profit and loss
responsibility, hands-on experience.
Determine what skills are needed for the job and write them down.
Revisit your skills profile periodically to see what changes you should
make. Look for attributes like common sense, assertiveness,
friendliness, eagerness.
Analyze your best workers to determine the attributes they have that
you'd like new hires to have.
Provide an environment free from discrimination and harassment. Explain
that you will not tolerate such activities.
Allow employees to respond to customers and act on their desires.
Say thank you, write a note or otherwise recognize your employees for
a job well done.
Make the work environment fun. Reinforce behavior you expect with a
smile instead of an order. Combine long meetings with a fun event. Host
a group lunch or dinner.
Provide leadership. Show your commitment to the business and your
conviction to consistently execute the store's strategies. Your message
must be that consumer satisfaction, not profits, is your No. 1
priority.
Involve employees and make them feel they are part of the team.
Encourage employees to ask questions about their activities and to
communicate ideas. Highlight their ideas, actions and achievements
through recognition and rewards.
Train your employees. Identify training needs in areas like customer
service, product knowledge and telephone skills. Follow through to make
certain that workers get trained. Monitor performance.
Evaluate employees on a regular basis, at least once every six
months. Evaluations should be in writing and in face-to-face meetings.
Use exit interviews to determine strengths and weaknesses in the
company.
Create an entrepreneurial environment by encouraging employees to
experiment and by showing a willingness to accept failure. Set up
suggestion boxes in the break room.
Source: Small Store Survival, Arthur Anderson & Co.
ILLUSTRATION: [Cover]
KEN WRIGHT/Staff
[Color Photos]
DAVID STERLING
Shannen Walsh
Shannen Walsh has been a waitress at the Outback Steakhouse in the
Kempsriver Shopping Center ever since the restaurant opened two
years ago. She was one of hundreds of applicants who were carefully
screened, given tests and extensive interviews. The extra investment
has paid off for the steahouse; it has one of the lowest employee
turnover rates among restaurant chains.
Jay Winslow
Jay Winslow has been selling shoes since he was 15 years old. ``You
got to have the gift of gab,'' says Winslow. It's small things like
throwing in a shoe horn or remembering a name that sets the 35-year
sales veteran apart from other salespeople.
[Color Photo]
LAWRENCE JACKSON/Staff
Tommy Bean
Longtime salesman Tommy Bean tells the managers at The Quality Shop,
which has three stores in Hampton Roads, what customers want and
suggests which products the stores should carry. Workers earn
commissions, benefits and stock - "enough to make me retire
comfortably," says Bean.
by CNB