What retail employees want - Culture Amp...What retail employees want 07 Below are the ten questions...

What retail employees wantInsights for driving engagement and retention

A Culture Amp ebook

http://www.cultureamp.com

Every year we see our customers become more and more sophisticated, intentional and successful in the way they hire, inspire and develop people. Driven by people feedback from employees, and reliable analytics, people operations experts are taking action to improve people’s experiences at work, increase employee engagement and help people be more effective.

In this report, we explore what we’ve learned about people who work in retail organizations. We also draw on the experiences of our customers to offer ideas you can use to improve your workplace.

Introduction

Jason McPhersonChief ScientistCulture Amp

Buddhi JayatillekeLead Data ScientistCulture Amp

What retail employees want 02


Why does employee engagement matter? ��04

What do retail employees want? ��06

What keeps retail employees engaged? ��07

What keeps retail employees from leaving? ��08

Learning and development ��09

Leadership ��10

Reward and flexibility ��11

Impact and enablement ��12

5 reports every HR executive needs ��13

Footnotes ��19

Contents



Why does employee engagement matter?

While the times of employee engagement being viewed as just a warm and fuzzy nice-to-have are hopefully behind us, there’s still some confusion as to what the ROI of engagement is, and whether that’s an appropriate lens to apply�

Whether you’re motivated by employee wellbeing, company bottom line, or both, there are compelling reasons to focus on employee engagement�

When we take a look at our data for retail organizations, it’s clear organizations with higher employee engagement have higher Glassdoor scores� There is significant research across all industries on how increasing employee engagement can impact business success in many areas�

minimum maximum average median

glassdoor 2�4 4�5 3�4 3�3

culture amp 45 92 70 71

Engaged organizations:1

can reduce staff turnover by

grow profits up to 3x faster than their competitors

can improve performance by

87%3x

20%Employees who work for engaging organizations exhibit:2

– positive perceptions of the deal they get from their employer

– lower levels of stress

– a better work life balance

Glassdoor scoresGlassdoor employer review scores provide a rating out of five, and Culture Amp engagement scores provide a rating out of 100� As you can see below, there is high correlation between the scores�



147%Employees from companies with engagement scores in the top 10% are 80% more likely to recommend the company as a great place to work�3

In workplaces with low engagement, 51% more inventory shrinkage occurs�

An engaged employee is 87% more likely to stay with an organization�4

Attracting & retaining talent Share earnings

Cost

USD$450 – $550 billion

Companies with highly engaged workforces outperform their less-engaged peers by 147% in earnings per share�5

Estimated annual cost (USD) of actively disengaged employees in the USA�6

Absenteeism

Average number of sick days taken by employees�8

2.7 engaged 6.2 disengaged +51% shrinkage

Does your work life negatively impact upon your physical health? 9

Replacing one employee is estimated by some experts to cost as much as their annual salary.7

YES

12% of engaged employees say yes�

YES

54% of actively disengaged employees say yes�

Health



What people say they want, what makes them more engaged at work, and what makes them want to stay, are often three different things� To untangle these signals, we incorporate questions in our engagement surveys to identify what factors (for example reward, learning and development and leadership) drive engagement (motivation, commitment, future commitment, pride and recommendation)� By asking sets of questions related to factors, as well as five key engagement questions, we can make sense of how each factor impacts each element of engagement� Importantly, we can compare the factors that influence overall engagement, and those which influence commitment� Although they’re similar, you’ll see in the following pages that a factor that doesn’t impact engagement can play a part in peoples’ decision to stay or leave, and vice versa�

Using our data we can also compare the responses of people who work in the retail industry to people who work in other industries� The overall engagement scores are hardly different - but when we dig deeper further along in this report, you’ll see there are gaps in specific factors where retail performs better than other industries, and vice versa�

What do retail employees want?

engagement scores score gap

Engagement score 0

recommendWould recommend company as a great place to work

-1

motivationMotivates them to go beyond what theywould in a similar role elsewhere

+1

prideProud to work for their company +2

present commitmentRarely thinking about looking for a job elsewhere

-3

future commitmentCan see themselves still working there in two years’ time

-2

Engagement scoreThere are a few different ways that Engagement and other survey scores are commonly calculated and presented� This can cause a great deal of confusion when we are making comparisons between results from different sources� At Culture Amp we recommend using simple and transparent methods so scores can be readily understood and replicated� We ask questions using a five point scale and the top two responses represent agreement and strong agreement� The scores simply represent the percentage of people who have agreed or strongly agreed on average�

*Other Industries include all other industries in our benchmark database excluding New Technology companies and Retail companies� New Technology was not included as it was deemed inappropriate as a comparison�

68%67%

88%86%

52%55%

61%63%

70%70%Retail

Other industries*

80%81%

Retail

Other industries*



Let’s take a look at the top ten questions that are most strongly related to employee engagement� Comparing engagement scores of retail and other industries, there are some notable gaps� Retail employees are more likely than employees in other industries to believe their organization’s offering is good as, or superior to those of competitors�

As you can see by the rankings, there’s a difference in how questions relate to engagement and commitment� Some are ranked in the top ten for both engagement and commitment, and others only for one or the other�

What keeps retail employees engaged?

Driver analysisDriver analysis is a family of statistical techniques used to determine how strongly variables are related to each other� In the Culture Amp platform, every individual’s responses (to every question) are statistically compared with how they respond to the engagement questions to determine which questions are most strongly related to overall engagement� Importantly, the things a company does very well, or not very well, are not necessarily the things that determine how engaged or committed employees are�

driver rankquestion factor score gapengagement commitment

1 6 [Company] is a great company for me to make a contribution to my development

learning and development +4

2 3The leaders at [Company] demonstrate that people are important to the company’s success

leadership -7

3 1 I believe my total compensation is fair, relative to similar roles at other companies

reward and flexibility -7

4 2 I am given opportunities to develop skills relevant to my interests

learning and development -6

5 5 I believe there are good career opportunities for me at [Company]


6 - The leaders at [Company] have communicated a vision that motivates me leadership -4

7 - I receive appropriate recognition for good work at [Company]

learning and development 0

8 - At [Company] we act on promising new or innovative ideas

impact and enablement +2

9 8 I have confidence in the leaders at [Company] leadership -6

10 -The products and services [Company] provides are as good as, or better than, our main competitors

impact and enablement +11

77%73%

64%71%

43%50%

61%67%

65%60%

63%67%

64%64%

69%67%

67%73%

84%73%

Retail

Other industries



Below are the ten questions that most strongly relate to commitment� When customers are looking to understand what's impacting retention, this is how they go about initial diagnosis� As you can see, although time out from work didn't appear in the engagement drivers, it's number four in the drivers of commitment� Notably, although compensation sits at number three for engagement, it's number one for commitment�

What keeps retail employees from leaving?

driver rankquestion factor score gapengagement commitment

3 1 I believe my total compensation is fair, relative to similar roles at other companies


4 2 I am given opportunities to develop skills relevant to my interests


2 3The leaders at [Company] demonstrate that people are important to the company’s success

leadership -7

- 4 I am able to arrange time out from work when I need to


5 5 I believe there are good career opportunities for me at [Company]


1 6 [Company] is a great company for me to make a contribution to my development


- 7 I am happy with my current role relative to what was described to me


9 8 I have confidence in the leaders at [Company] leadership -6

- 9[Company] effectively directs resources (funding, people and effort) towards company goals

impact and enablement -3

- 10 I have access to the things I need to do my job well

impact and enablement -1

43%50%

61%67%

64%71%

82%83%

65%60%

77%73%

72%75%

67%73%

55%58%

Retail & H.

Other Ind.

73%74%



Driver questions related to the learning and development factor appear twice as much as any other factor of engagement or commitment for retail employees� Learning and development is a strong driver of engagement in all the industries we work with�

Employees crave:

– the opportunity to make a contribution to their development;

– developing skills relevant to their interests;

– career opportunities;

– appropriate recognition;

– clear role descriptions�

Learning and development needn't be expensive. Here are two approaches our customers use.

Ask the right questionsMaking the time to understand peoples' goals allows you to match people with growth opportunities� You could ask questions like: “What do you want to be doing that you aren't currently doing?”; “What are the three most important things you would like to accomplish right now?”; “What do you need that's preventing you from reaching those goals?” and “How can I best support you to achieve those goals?” Some organizations have employees share their goals in a document that's available to management and peers, so people can help one another achieve their goals�

Teach each otherGive employees an opportunity to learn from each other� One organization's learning and development program is taught by employees� They teach classes and workshops that range from extracurricular skills to those that are essential to their roles� This has proven to be a formalized way for employees to share their skills and interests with others in the organization� The community aspect fosters collaboration and team support�

Learning and development

Highlight learning and development opportunities in your job advertisements to attract driven candidates.

“Zulily offers learning on the job through their fun, fast-paced and ever-evolving business. Additionally, employees have access to over 400 online and in-person courses – including an 8-course program for managers to help make them more engaging and effective leaders. zulily also offers a job exchange and rotation programs to facilitate continued career development. One of zulily’s most popular programs is their monthly zUniversity series, where they bring in innovators and leaders from different industries to speak to employees.”

Find out more >


https://insights.cultureamp.com/insights/2016/10/13/10-companies-with-great-learning-and-development-opportunities-part-two


Leadership isn't just about rostering and troubleshooting, although it can seem like it at times�

Employees want leaders who:

– demonstrate that people make the company a success;

– communicate a vision that motivates them;

– inspire confidence�

Leaders demonstrating the importance of people is the number two driver of engagement (and number three driver of commitment) for retail employees, and there's a -7 gap in scores of retail organizations as compared to all other industries� Finding ways to let people know they're integral to your organization is a great way to boost engagement and retention�

Here are some great ideas our customers have shared with us.

The Wow! WallOne company has a Wow! Wall where people can post stories of when coworkers have gone above and beyond� The wall is in a high-traffic area so everyone can casually pass by and read about the great work of their colleagues�

Thank you cardsOne organization provides thank you cards for people to complete and hand-deliver� The HR team creates templates that link to the company values and current organizational objectives� This is a great way to reinforce your vision and values, whilst acknowledging exemplary behaviors�

EventsHaving a schedule of events where employees are recognized for their work ensures intentionality and follow-through� One organization has monthly recognition events� They recognize good work and highlight what people are working on and how it's helping the organization deliver on its mission and work toward its vision�

Leadership



Reward and flexibility is a factor that only comes up as a key driver of engagement for retail and hospitality organizations, not any other industry we work with� Compensation is the number one driver of commitment - indicating that people will leave if they they don't believe their compensation is fair� It's also the number three driver of engagement� retail organizations trail seven points behind other organizations for compensation�

The ability to arrange time out from work is also a driver of commitment for retail employees� Considering the nature of the job, retail organizations only being two points behind all industries is not a bad result� Still, the message is that if people perceive that they'd more easily be able to arrange time off if they moved to another employer, it will significantly factor into their decision to leave�

Here's one idea from a Culture Amp customer:

Cross-trainingTrain employees across positions to ensure adequate coverage� One organization uses a cross-training program to ensure every role has adequate coverage if an employee leaves the organization or just needs to take time off� An inventory of high-risk roles and associated tasks is created and people are given the opportunity to identify tasks they are most interested in learning� The training typically starts as shadowing and culminates in a small project to make sure the person can successfully perform the task�

Reward and flexibility

Point of differenceIf your organization is tracking well on flexibility or benefits - mention it in your job ads� Similarly, if there is no leave available over holiday times, setting expectations up front will alleviate friction�



Impact and enablement represents the way people feel their efforts are enabled and amplified as well as how they see the company as impactful in the broader market and world� At the micro level they want to feel they have access to what they need to get their job done and they want to see resources directed in the right places (not wasted)� At a higher level they want to see innovation happening (acted upon) and ultimately that their company maintains a strong position in the market�

People want to work for an organization where:

– innovative ideas are actioned;

– resources (funding, people and effort) are directed to achieve company goals;

– the products and services are as good as, or superior to those of competitors;

– they have the things they need to do their job well�

Here's one approach to help employees understand the impact of the work they do.

Customer panelShare the value that customers experience with employees on a regular basis� Invite a panel of customers to be a part of your all hands meetings� Each customer explains how using your product or service has positively impacted their business and shares some things they wish the product or service could do (or ways the product or service has failed them)� An employee moderates a Q&A session between the customer panel and attendees� On a team level, you could invite a panel of internal customers to be a part of your team meeting� The internal customers can explain how the team helps them achieve their goals and highlight some ways the way the team works with them could be improved�

Impact and enablement



5 reports every HR executive needsHelping you focus attention where it will have most impact

Employee experienceCollecting feedback from your employees from early in their career with your organization allows you to understand their journey throughout the employee lifecycle – from onboarding to exit� Gathering employees’ first impressions allows you to refine your recruiting and the way you welcome people to your organization, whilst exit reports can provide valuable input into how you can increase retention�



EngagementMany of our customers swear by our engagement dashboards – with real-time reporting and easy-to-understand reports highlighting key drivers of engagement, and heatmaps identifying hotspots in their organizations – they’re always prepared to make decisions to improve their workplace� Gone are the days when finance and marketing were the only ones with sophisticated reporting to guide and reaffirm their actions�



HeatmapsQuickly and easily identify areas where people are thriving and problem spots where attention is required� Our heat maps are one of our most popular features and our team of data scientists and organizational psychologists ensure insights are not only simple to attain, but are reliable and actionable�



EffectivenessOur feedback tools for managers and individuals provide valuable data about how your team is tracking� Take a look at overall levers impacting how effective your managers are, or review learning and development needs for your team�



How can we help?Culture Amp is the world’s most powerful employee feedback and analytics platform. Designed in consultation with our in-house organizational psychologists, data scientists and user experience specialists, it’s easy to use and uncovers valuable real-time analytics anyone can understand.

We’ve got some exciting additions to the platform coming up in 2017 and we’d love to share them with you. Have a chat with one of our people geeks and we can tell you all about them.

cultureamp�com/contact-us

Learn more


https://www.cultureamp.com/contact-us



1� Corporate Leadership Council /Corporate Executive Board, ‘Improving Employee Performance in the Economic Downturn’, 2008� Cited in MacLeod, 2009, p� 37�

2� Austin, J�, interviewed by Macleod, D and Clarke, N�, and cited in MacLeod, 2009, p� 59-60�

3� McPherson, J� and Jayatilleke, B�, Culture Amp: New Tech Benchmark Report 2016, Culture Amp, 2016, p� 13�

4� Corporate Leadership Council, Corporate Executive Board� Driving Performance and Retention through Employee Engagement: a quantitative analysis of effective engagement strategies� 2004� Cited in MacLeod 2009, p�14�

5� www�gallup�com/services/190118/engaged-workplace�aspx, accessed 13 July 2016�

6� Gallup, How to Tackle U�S� Employees’ Stagnating Engagement, 2013� Available online at http://www�gallup�com/businessjournal/162953/tackle-employees-stagnating-engagement�aspx� Accessed 1 August 2016�

7� MacLeod, 2009, p� 14�

8� Harter, J�K�, Schmidt, F� L�, Kilham, E� A�, Asplund, J�W�, (2006), Gallup Q12 Meta-Analysis� Cited in MacLeod, 2009, p� 36�

9� Crabtree S�, ‘Engagement Keeps the Doctor Away’, Gallup Management Journal, 2005; and Gallup Study; ‘Feeling Good Matters in the Workplace’, Gallup Management Journal 2005� Cited in MacLeod, 2009, p� 30�

Footnotes



What retail employees want - Culture Amp...What retail employees want 07 Below are the ten questions...

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