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Keeping Talent: Building Employee Commitment
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Keeping Talent: Building Employee Commitment


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  • 2.  Having attracted and developed effective employees, an important challenge in retailing is to keep them.  High turnover reduces sales and increases costs.  Sales are lost because inexperienced employees the skills and knowledge about company policies and merchandise to interact effectively with customers.
  • 3.  To reduce turnover, retailers need to build an atmosphere of mutual commitment in their firms.  Approaches to build mutual commitment: 1. Empowering Employees 2. Creating a partnering relationship with employees
  • 4.  Empowerment is a process in which managers share power and decision-making authority with employees.  When employees have the authority to make decisions  they are more confident in their abilities  have a greater opportunity to provide service to customers  are more committed to the firm’s success.
  • 5.  The first step in empowering employees is reviewing employee activities that require a manager’s approval.  Empowerment of retail employees transfers authority and responsibility for making decisions to lower levels in the organization.  These employees are closer to the customers and in a good position to know what it takes to satisfy customers.  For empowerment to work, managers must have an attitude to respect and trust, not control and distrust.
  • 6.  Three HR management activities that build commitment by developing partnering relationships with employees are: 1. Reducing status differences 2. Promoting from within 3. Enabling employees to balance their careers and families
  • 7.  Many retailers attempt to reduce status differences among employees.  With limited status differences, employees feel that they play important roles in the firm’s ability to achieve its goals and that their contributions are valued.  Status differences can be reduced symbolically through the use of language and substantively by lowering wage differences and increasing communications among managers at different levels in the company.
  • 8.  Staffing policy hiring new employees only for positions at lowest levels in the job hierarchy and then promoting experienced employees to openings at higher levels in the hierarchy.  Other retailers frequently hire people from competitors when management positions become available.  Promotion-from-within policies establish a sense of fairness and also commit the retailer to developing its own employees.
  • 9.  Increasing number of two-income and single- parent families make it difficult for employees to effectively do their jobs and manage their households simultaneously.  Retailers can build employee commitment by offering services like job sharing, childcare, and employee assistance programs to help their employees manage these problems.
  • 10.  Flextime is a job scheduling system that enables employees to choose the times they work.  Job sharing is when two or more employees voluntarily are responsible for a job that was previously held by one person.  Both programs let employees accommodate their work schedules to other demands in their life, such as being home when their children return from school.