Training

Published: 12 Dec, 2008

Should we focus on cutting staff and personnel-related costs when times are tough?

In hard economic times such as we are experiencing at the moment, retailers look at ways to cut costs out of their business. Inevitably, high on their list will be costs related to staff and personnel. They will have several options to consider: 

• Stop recruiting new staff members, maybe squeeze a bit more out of the existing  team.
  Don’t replace staff members who leave.
  Cut back the hours of casual staff, and maybe even put some of them off.
  Stop all overtime, and reduce staff numbers on days that incur penal rates.
  Stop spending on staff training.

All of these will have an immediate, if short term, benefit. But what about the long term effect on the business? What will the costs be to the business as a result of these steps? Will it be:

•     A drop in customer service levels? 
•     A drop in merchandising and store presentation standards?
•     A drop in product maintenance and quality?
•     A drop in customer satisfaction?
•     Declining customer numbers? 
•     Declining sales? 
•     Staff members without the skills to meet the demands    

Of course, managing costs is the sensible route to take, especially in a slower economy. No-one would argue with that! But it is not the only option and sometimes the easiest option is not always the best one. Harder to do, but just as important, is to look at ways to increase sales, improve profitability, and drive the business.

It’s all very well to say this, but how do you do it in the current economic climate, where every retailer is fighting for disposable, discretionary cash?

Cutting prices might be an option, but is this really the answer? It may have a quick, short term effect, but it can also reduce profit margins, forcing further cost cutting and sending the business into a downward spiral.

There really is no one miracle cure.

What is needed is a combination of steps and approaches 

• Better buying,right product at best price
• Better pricing, a pricing strategy
• Better store layout
• Better merchandising and signage
• Better promotion and advertising
• Better customer service and selling skills 

(Information about these topics are available here on this site)

These are all people related activities which require certain skills and abilities.
How do staff acquire these skills and abilities? – Through training!

If these are the skills and talents needed to get us through the tough times, maybe cutting out the training budget is not the best move. Not only will the business benefit in the immediate term from honing up on these skills, but they will contribute to its long term viability.

Many retailers say “What if I train my staff and then they leave?” The corollary to this is “What if you don’t train them in all these skills and they stay?”
Do you want to be the only garden retailer with un-trained staff?

In a competitive environment your store needs to stand out, to have a clear point of difference. It could be price, it could be range, it could be quality.
It could be superb customer service.
None of these can be achieved or maintained without training.

 When advertising for new staff many garden retailers say “Must have horticulturalknowledge”!

Employ staff for their innate, inherent qualities – personality, enthusiasm, drive, initiative, work ethic.

Then train them on things that can be learned– product knowledge, customer service and selling skills, merchandising, buying, product management.

Now you will have a winning team and a winning business!
   

 - John Russell

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