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Strategies Unveiled to Retain New Hires

Like contrite children, retailers listened when they were scolded for treating new hires with little respect and a lack of oversight. After recounting some first-day-on-the-job fiascoes that have left young employees in tears, former supermarket executive Harold Lloyd placed the blame for rapid, expensive turnover right at the feet of the employer. Then he underscored the cost of such

ANAHEIM, Calif. — Like contrite children, retailers listened when they were scolded for treating new hires with little respect and a lack of oversight.

After recounting some first-day-on-the-job fiascoes that have left young employees in tears, former supermarket executive Harold Lloyd placed the blame for rapid, expensive turnover right at the feet of the employer. Then he underscored the cost of such turnover and showed how money could be saved with a minimal investment of time and money. In addition, there is the satisfaction borne of treating other human beings with respect, he said here at the opening session of the International Dairy-Deli-Bakery Association's Dairy-Deli-Bake 2007 Expo, June 2-5.

“After the session, retailers told me they hoped my message was heard, because things do have to change,” Lloyd said. “I believe it struck a nerve. Some said they took note of the statistics [showing the rate and cost of turnover], and they also expressed empathy for kids like my daughter who have endured such disrespectful treatment by supermarket managers.” [See “New Hires Need Recognition, Says Consultant” SN, June 4, 2007.]

While retailers, on average, offer about eight hours minimal training before asking the associate to go solo without any “buddy system” or supervision, some told Lloyd they know they have to change that. In fact, they all reacted positively to his suggestions, Lloyd told SN.

He launched his presentation by stepping onto the stage in a baby bonnet. His aim, he said, was to underscore the need to nurture qualified new hires into valuable, long-term employees over a period of time. His entrance may have been whimsical, but everything else was dead serious.

Early in his presentation, Lloyd described not only his daughter's experience on her first — and last — stint at a supermarket, but also that of others, of young people and older focus group participants who had told of unfortunate ventures in the supermarket work world.

One said that out of seven people hired the same day she was hired, six had quit by the end of the first week. Lloyd pointed out that the average cost per retailer for such turnover is about $200,000 a year. The U.S. Department of Labor estimates it costs a third of a new hire's annual pay to replace him or her. Industrywide, it's been estimated that the cost of employee turnover amounts to 40% of the entire supermarket industry's profits.

With that underscored, Lloyd presented statistics verifying the rapidity of turnover. Over 30% of all new hires terminate of their own accord in the first 30 days, he said. Thirty percent of new hires do not see a store manager in the first two weeks, and 34% of new hires get a call the same day from another company at which they had also applied.

“Of course they applied elsewhere, and if at the end of that first day you haven't treated them with any courtesy at all, they're bolting. And they'll get even,” he said. “After all these years with such turnover, it's amazing we still act like we have the upper hand. We don't.”

Lloyd went on to offer 30 guidelines for keeping a qualified employee happy enough to stay. He acknowledged that they can't all practically be put in place everywhere, but he suggested that even a handful of the most basic suggestions could go a long way toward cutting turnover costs and producing happy associates.

The one absolute minimum Lloyd emphasized is to make sure the store manager is present on the day the new hire is asked to report.

A handshake and a greeting from the top store-level official costs nothing and should be top priority.

“There's no reason to have the hire report on Tuesday if that's the store manager's day off,” Lloyd said.

Then there's the matter of name badges. Lloyd showed a slide of a good-size round red badge that says, “Hi … I'm new and trying my best.” It's a temporary badge with a slot for sliding in a paper with the new hire's name on it.

That does two things. It identifies him or her correctly, and also alerts customers that this is a new hire who may not have all the answers yet.

On that critical first day, too, Lloyd strongly advises the store manager and/or department manager to go over a list of 10 top expectations he has of the employee and 10 promises that he will make to the employee. Examples of the first include, “Arrive five minutes before scheduled shift, wearing uniform and name tag” and “Smile and make eye contact with people you meet.”

The “Promises” could include such things as “Schedule posted by Wednesday noon,” “Respectful treatment” and “15-minute break every 2-3 hours.”

A 10-minute debriefing at the end of the day is a bare minimum as well, in order to see what questions the new hire might have. Lloyd then listed 30 ideas that could be implemented during the first 30 days.

“How about a goodie bag at the end of the first week? Who doesn't like freebies?” Lloyd asked. “If you're proud of your fresh-baked French bread, put a loaf of that in, or a pint of store-made potato salad, and how about some of your private-label items? I guarantee the employee be delighted. So will their families.”

Lloyd cited one chain that sends a letter to the parents of new teenage hires, assuring them they're happy to have their son or daughter on board.

A structured orientation program that includes a mentor or buddy to shadow the new hire is a must as well, he said, emphasizing that the average time spent with a new hire before sending him on his own is eight hours in the supermarket industry.

“The best I've seen is 20 hours, and it should be more than that, like 32.”

In addition to respect, new hires need to know things about the store and what exactly their job will entail. Statistics show that a tremendous number of new hires in other industries, as well as in the supermarket industry, leave because they don't know what they're doing. They've been given little or no training.

“It's your responsibility to create an orientation program that will make hires want to stay with you,” Lloyd told his audience.