Unlocking the Power of Engaged Retail Employees

A recent webinar, "From Grumpy to Great: Because Happy Employees Don't Spit In Your Coffee," brought together Paul Landry (Lightspeed Commerce), Andrew Duffy (SparkPlug), and me to discuss strategies for transforming retail workplaces. You can watch the full version below.

The Importance of Employee Engagement

According to Axonify's 2024 seasonal hiring survey, almost 60 percent of retail managers state that the quality of applicants this year regarding skill set, professionalism, and job-related experience is much lower than last year. This illustrates the critical need to engage and retain quality employees.

The key to transforming grumpy employees into great ones is understanding that associates who feel cared for will treat customers like they're cared for, too. Slow down and commit to excellent onboarding. When you nail this, those new hires will make it. If you find new hires ghost you, consider taking the stance that it's on you, not them. 

To help make new associates feel welcome, have a conversation with them that gathers enough information so that you can go around the sales floor, introduce them to every other employee, and connect them with someone who shares a common interest. Then, leave those two alone for a few minutes to get to know each other. This simple act helps integrate new hires into the team and makes them feel valued from day one.

It goes far beyond, "That's Tim over there. He does shipping. And Karen over here. She's been here a long time, etc."

Retail managers should spend five minutes weekly with one employee doing a menial task. This hands-on approach helps build relationships and shows employees that their development matters.

Retail is like a family. Many people enter the retail industry not just because they need a job but because they want a place where they feel like they belong. When I was 16, I found in it a supportive family environment that taught me valuable life skills. 

Leveraging Technology for Employee Performance

Paul Landry from Lightspeed Commerce focused on how technology can enhance employee performance and engagement. He emphasized that performance in his mind "is something you get when staff are happy."

Landry discussed how a point of sale (POS) system can be a powerful tool for improving employee performance. He explained, "If you're hiring right, share some data. That's because it's been proven to increase accountability and buy-in from your staff."

He shared a personal example from his comic book store: "We recently had a staff meeting. Our employees are all very specialized. You have someone good with Pokemon cards, maybe not great with comic books." By sharing data on sales performance across different product lines, Landry motivated his staff to broaden their expertise and increase overall sales.

Landry also highlighted the importance of mobile technology in retail: "The idea that technology can just fit in your hand and go with you is great, but you don't need just to use that to check TikTok, right? Your staff can use that to be productive." He explained how mobile POS systems allow staff to serve customers anywhere in the store, improving engagement and productivity.

He also explained how having your POS also process your credit card lets you track customer purchases better because everything is tied together. It also helps prevent under/overcharges from manual data entry. 

On the topic of customer data, Landry introduced the concept of the "Cheers effect," referring to the popular TV show: "You show up and everybody knows your name at the business. It's just a warm, welcoming family." He explained how POS systems can help staff remember customer preferences and history, creating a more personalized shopping experience. You can see how the Retail Doctor and Lightspeed can give you a special incentive to switch to their platform here. 

Driving Sales Performance Through Incentives

Andrew Duffy from SparkPlug focused on motivating employees through effective incentive programs. He started by addressing a common misconception: "Sixty-three percent of employees feel underpaid, 54 percent feel underappreciated, and almost half of them would leave if they had another job opportunity come up. That's not the experience you want your workers to have in the store."

Duffy emphasized that motivation isn't all about pay: "In reality, it's about their experience and the psychology of their experience. How do they feel when they come to work? And how can we make them feel motivated, excited, and like they're progressing?"

He introduced a simple equation for creating effective incentives: Outcome = Skill x Will. Duffy explained, "Skill is exactly what Bob was just talking about. How do you get people feeling like they can do the job? If they can do the job, then it makes sense to motivate them to do the job."

Duffy shared insights on creating impactful rewards: "Giving someone 50 cents for selling the most of anybody in the store for a month, that's not a meaningful reward. But give them a pair of custom Nikes with the store brand. That's cool."

He also stressed the importance of timing and visibility in rewards: "A reward is really only relevant, and it's really only going to hit people in the motivation centers of their brain if it's happening at a relevant time." Duffy suggested celebrating successes publicly to reinforce positive behaviors across the team.

Duffy shared this anecdote from his first retail job: "I was scared to walk up and talk to people. I was scared to try the upsell. I thought people would say, 'Don't try to upsell me. Get out of here, kid.'" He used this to illustrate the importance of building confidence in employees, especially younger ones.

Action Items and Benefits

Conclusion

Retail is a game of being brilliant on the basics.

By focusing on effective onboarding, leveraging technology, and creating meaningful incentive programs, retailers can create positive work environments where employees feel valued, motivated, and equipped to provide excellent customer service and turn their retail workplaces from grumpy to great.