4 Keys To Keeping Your Employees

Consumer insights on keeping your employees

Good article in the current edition of QSR magazine entitled, “More Than Minimum Wage.”

While the article is focused on reducing employee turnover in quick serve restaurants, it is relevant to any industry — B2C or B2B — even in the midst of 9%+ unemployment.

During most of the past decade, quick-serve restaurants experienced 100% turnover over the course of a year.  This number fell to 85% in 2010 and is currently running at 80%.

The decline in turnover is a function of people who have jobs are hanging on to them in times of high unemployment.

When the economy improves, turnover will increase.  I’ve seen studies reporting that 60 to 70% of employees are not engaged with their current employer — and this is during a recession and period of stagnation.

Three chains are recognized as leaders when it comes to keeping their employees happy:  Starbucks, Chipotle and Panera Bread.

What they all have in common is a hip brand that people want to be associated with and a culture that encourages entry-level employees to see themselves at the beginning of a career, not just a job.

According to Chris Arnold at Chipotle, “the key to our success is the strength of our people culture.”  Chipotle promotes more than 90 percent of it managers from within the company.

Eating at Chipotle five times a week for the past five years, I can attest to the fact that Chipotle does a great job of developing employees and promoting from within.  This results in a better understanding of the product, the service culture and the brand values.

So what are the four keys to keeping your employees?

  1. Providing training programs
  2. Having clear career-path development
  3. Paying above minimum-wage labor rates
  4. Providing an inclusive culture and camaraderie

A lot of companies don’t want to invest in training their employees because they’re confident the employee will change jobs when offered more money.

However, if you commit to, and connect with, your employees on a personal level and show them that you are truly committed to their success and growth within the company, it will take a lot more money to get them to leave you.

A stable employee base is key to providing a consistently positive customer experience, regardless of the business you are in.

What are you doing to keep your employees?

Advertisements

About Insights From Analytics

Integrated marketing professional who generates insights from analytics to increase revenue. Daily blog now resides at www.insightsfromanalytics.com/blog.
This entry was posted in Consumer Insights and tagged , , . Bookmark the permalink.

2 Responses to 4 Keys To Keeping Your Employees

  1. elizabeth dove says:

    Regarding the post on how “hip brands” keep employees happy, how can that brand continue to keep its employees happy when the brand is no longer “hip” and another brand seems more “hip”

  2. ctsmithiii says:

    Brands should treat their employees just as they would like their employees to treat their customers (https://ctsmithiii.wordpress.com/2011/06/21/happy-employees-happy-customers/).

    1. Provide ongoing training.
    2. Show personal interest in each employee and their growth.
    3. Model the vision, mission and values of your firm and reward your employees for doing the same.
    4. Engage in a dialogue with employees to ensure you understand their needs and wants, as well as get their feedback on how you can improve products and services.

    The more engaged the employee is, the more committed to the organization and the less likely to leave for a few more dollars.

    By the way, I was surprised that these “hip” brands — Starbucks, Chipotle and Panera — have been around for 40, 18 and 18 years, respectively. They’ve done a good job of staying “hip” over time and I would bet a large part of that can be attributed to their employees.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s