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

info-uk@hso.com

+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 | info-uk@hso.com

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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