Employee Retention of Big Lots : Big Lots, Inc. (NYSE: BIG) is a Fortune 500 retail corporation with annual revenues well over $4 billion. Its department stores focus mainly on selling closeout and overstock merchandise. The company is based in Columbus, Ohio, USA and currently operates over 1,400 stores in 47 states. A typical store sells a wide variety of merchandise, including toys, furniture, clothing, housewares, and small electronics. Most of the items sold in these stores are purchased as they become available. What is in the store one day may not be there the next, and the store may not get further shipments of those particular items. Most of the merchandise in the stores are closeouts and overstocks. However there are some items in the stores, such as foodstuffs, that are replenished on a continual basis.
In many cases, Big Lots uses an existing building, such as a grocery or department store that had either moved or ceased operations.
The same has resulted in opening up a door of opportunities for companies from US & European countries to eye the Indian market in a big way and subsequent influx of outsourcing of processes to the Indian Market which in turn has resulted in call center boom, which is currently persisting and the future looks bright for India in this sector.
Having said that, there are lots of companies which are already established and there are many more in the process of getting incorporated. This throws immense opportunities for employment of individuals and considering the population of quality educated Indian individuals, it has only gone on to further strengthen the Indian perspective of being a very viable option for foreign countries to outsource their processes.
However, that may just be one side of the scenario that we might look and say all is good. Now, there is another side of the scene, which is from the Contact center company’s perspective.
Though it opens lots of employment opportunities, the present trend has put a lot of companies in jeopardy due to the constant shifting of manpower from one company for the very factor of better pay package.
Though none of the companies in India are interested in doing this repetitive exercise, they are contemplated with similar situation despite not being to their liking and slowly it is becoming a nuisance for them simply for the fact that they had to do away with their employees on whom they have invested the precious time, imparted training and expect them to be a part of them from a long term perspective.
Now, what we have discussed here till now is the problems being faced. Is there any solution to this?. The answer is YES. Now let us ponder a bit in to the solution aspect.
The inherent solution of this problem actually needs to come from the employees themselves. The short-term monitory benefits actually does not go a long way in resurrecting their career big time by any perspective.
However, if the companies could contemplate undertaking concrete steps with regard to motivation of employees, it might yield them better results. Over here, the thought of having performance based incentives could play a vital roles. Now, motivation here does not mean monitory gains only. The Human Resources Department needs to device the policies and procedures which actually bridges the gap between the employee and employers, creates a better understanding, attending to the grievances of the employees and device a system for recognition of employees contribution, by way of Prizes, Awards and similar things.
Early in the 2000s, Cracker Barrel made a concerted effort to lower the turnover rate of its front-line workers. The results have been impressive — churn has been more than cut in half from 2000's 161 percent — and have saved the Lebanon-based chain a ton of money. In its proxy statement filed Monday, the company updates us on its "outstanding" year. In fiscal 2010, the company's hourly worker turnover rate checked in at 72 percent, the lowest-ever year-end number, down four points from the prior year and "well below industry results." The turnover of management workers, however, ticked up a bit to 19.9 percent, although it also remains below the sector average. Other tidbits from Cracker Barrel's proxy: • Two of the company's 5 percent owners from a year ago — River Road out of Louisville and Chicago-based LSV — have moved on. The mammoth Vanguard Group has replaced one of them and now holds about 5.5 percent of the company. • The company's bill from Deloitte & Touche fell 20 percent to about $666,000. • The peer group used by the company and its compensation consultant to determine executives' salaries is changing a bit. Four companies — including fellow local O'Charley's — are being dumped because their market caps have shrunk too much. Coming in are another local, Tractor Supply, as well as Wendy's/Arby's and Big Lots.
Of course this is an oversimplification. Indeed, some level of staff turnover is both expected and required. But what level? What cost is acceptable? And, assuming that it is lower than the current level, what can be done to improve staff retention so that the desired level is achieved?
Mitigating the challenge of staff attrition.
We suggest that managers;
1. Recognise that staff retention is a Big Issue. This can be achieved by ensuring it is measured. And in sufficient detail across the various functions, roles and levels within your organisation. Put the business management spotlight on retention. Don’t sideline it as an ‘HR issue’. It isn’t. It is an issue for general management as well as HR.
2. Calculate the financial implications. They are likely to vary significantly between organisations and indeed between departments and teams e.g. the organisational and costs structure and profit drivers of an outsourcing function will result in different loss and replace costs to those of a management consulting unit. Consider using a specialist to help you work through this.
3. Understand why people leave. Survey after survey show similar results. People don’t generally leave because of pay; in fact salary is generally considered less important than career progression, seeking new challenges and achieving
In many cases, Big Lots uses an existing building, such as a grocery or department store that had either moved or ceased operations.
The same has resulted in opening up a door of opportunities for companies from US & European countries to eye the Indian market in a big way and subsequent influx of outsourcing of processes to the Indian Market which in turn has resulted in call center boom, which is currently persisting and the future looks bright for India in this sector.
Having said that, there are lots of companies which are already established and there are many more in the process of getting incorporated. This throws immense opportunities for employment of individuals and considering the population of quality educated Indian individuals, it has only gone on to further strengthen the Indian perspective of being a very viable option for foreign countries to outsource their processes.
However, that may just be one side of the scenario that we might look and say all is good. Now, there is another side of the scene, which is from the Contact center company’s perspective.
Though it opens lots of employment opportunities, the present trend has put a lot of companies in jeopardy due to the constant shifting of manpower from one company for the very factor of better pay package.
Though none of the companies in India are interested in doing this repetitive exercise, they are contemplated with similar situation despite not being to their liking and slowly it is becoming a nuisance for them simply for the fact that they had to do away with their employees on whom they have invested the precious time, imparted training and expect them to be a part of them from a long term perspective.
Now, what we have discussed here till now is the problems being faced. Is there any solution to this?. The answer is YES. Now let us ponder a bit in to the solution aspect.
The inherent solution of this problem actually needs to come from the employees themselves. The short-term monitory benefits actually does not go a long way in resurrecting their career big time by any perspective.
However, if the companies could contemplate undertaking concrete steps with regard to motivation of employees, it might yield them better results. Over here, the thought of having performance based incentives could play a vital roles. Now, motivation here does not mean monitory gains only. The Human Resources Department needs to device the policies and procedures which actually bridges the gap between the employee and employers, creates a better understanding, attending to the grievances of the employees and device a system for recognition of employees contribution, by way of Prizes, Awards and similar things.
Early in the 2000s, Cracker Barrel made a concerted effort to lower the turnover rate of its front-line workers. The results have been impressive — churn has been more than cut in half from 2000's 161 percent — and have saved the Lebanon-based chain a ton of money. In its proxy statement filed Monday, the company updates us on its "outstanding" year. In fiscal 2010, the company's hourly worker turnover rate checked in at 72 percent, the lowest-ever year-end number, down four points from the prior year and "well below industry results." The turnover of management workers, however, ticked up a bit to 19.9 percent, although it also remains below the sector average. Other tidbits from Cracker Barrel's proxy: • Two of the company's 5 percent owners from a year ago — River Road out of Louisville and Chicago-based LSV — have moved on. The mammoth Vanguard Group has replaced one of them and now holds about 5.5 percent of the company. • The company's bill from Deloitte & Touche fell 20 percent to about $666,000. • The peer group used by the company and its compensation consultant to determine executives' salaries is changing a bit. Four companies — including fellow local O'Charley's — are being dumped because their market caps have shrunk too much. Coming in are another local, Tractor Supply, as well as Wendy's/Arby's and Big Lots.
Of course this is an oversimplification. Indeed, some level of staff turnover is both expected and required. But what level? What cost is acceptable? And, assuming that it is lower than the current level, what can be done to improve staff retention so that the desired level is achieved?
Mitigating the challenge of staff attrition.
We suggest that managers;
1. Recognise that staff retention is a Big Issue. This can be achieved by ensuring it is measured. And in sufficient detail across the various functions, roles and levels within your organisation. Put the business management spotlight on retention. Don’t sideline it as an ‘HR issue’. It isn’t. It is an issue for general management as well as HR.
2. Calculate the financial implications. They are likely to vary significantly between organisations and indeed between departments and teams e.g. the organisational and costs structure and profit drivers of an outsourcing function will result in different loss and replace costs to those of a management consulting unit. Consider using a specialist to help you work through this.
3. Understand why people leave. Survey after survey show similar results. People don’t generally leave because of pay; in fact salary is generally considered less important than career progression, seeking new challenges and achieving
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