Chapter 7 - Employee Development

A Tough Job

Perhaps the most difficult aspect of a retail business to master is staff management and development. To properly manage your staff, you must enter a world shaded in grey, as opposed to the black and white world of buying, inventory management and sales management.

Retailers often struggle to develop the softer skills required to be successful in this area. It takes a concerted effort and a deep understanding of the critical role played by store staff. With a strong focus, you can greatly enhance the abilities of your employees and harvest the tremendous results they are capable of delivering.

For many years, business experts insisted that the most important element of a retailer's success was location. While it is still true that maximum exposure and convenience are vital, it can no longer be said that location alone will ensure success. The "Staff Factor" has revolutionized the way we must look at our business.

Many of us will remember the "Four P's of Marketing" from our days in school. They were price, product, promotion (advertising) and place (location). It was said that these four key elements were the sole basis for success in retail.

Yet in today's tough, competitive marketplace where many retailers are disappearing, these four factors account for only a portion of our success. The remainder comes from the magical and elusive "Fifth P" ... PEOPLE!

The Staff Factor simply states that the key to your success is the people within your organization. If you were to examine any number of retail stores today, you would have to agree that many sales are lost by the people working in those stores. Makes sense that we should focus on this area, doesn't it?

Poor service, lack of product knowledge, indifference towards the customer and limited selling skills result in the loss of thousands of dollars in sales each and every day. Imagine the impact on your store's bottom line if each employee was focused on selling and serving every customer that came in your door. Sales increases of 20% to 100 % are there for the taking, but only through the efforts of your staff.