Staff recruitment & retention

In recent months, a major area of concern to HAI members has been that of staff. This concern is for all career stages – recruitment, retention, and succession. Access to, and the cost of attracting and keeping talent has come to the fore of issues confronting members. Compounding this is the challenge of engaging and motivating staff who are not on site.

The Membership Services Subcommittee (MSS) have held two meetings specifically focused on the issue. This report is largely the conclusions of these think-ins.

HAI also had a very successful webinar on the topic with Fredericka Sheppard of Voltedge, www.voltedge.ie.

Fredericka Sheppard, Voltedge.

Fredericka is a thought leader in the subject and her advice is sought by many prestigious brand names. A recording of the webinar is available on www.hardware-educationhub.ie. Email aoife@hardwareassociation.ie for access.

The contribution of the MSS and Fredericka has been invaluable in putting these ideas together. HAI recently conducted a snapshot survey of members
experience and intentions on staffing issues. Much of this echoed the findings of our Wage Survey earlier in the year.

Almost 80% of respondents have vacancies, and many have multiple vacancies. And 80% will be looking for staff in the next six months.

The main challenge identified in the survey is an overall shortage of candidates for roles. In this, while it is cold comfort, most sectors are experiencing a similar difficulty. Practically full employment is predicted by year end and this will compound the challenge. Demand for higher wages and the perception that there are higher wages to be had is the next biggest challenge. For some the hardware sector is not seen as an attractive career.

Some respondents mentioned that anyone who wants a job has one. The Pandemic Unemployment Payment (PUP) was only mentioned a couple of times as a disincentive to candidates. The roles that members are trying to fill are varied – 43%+ are in customer-facing roles, 27% are in the yard/stores. The other 30% of vacancies are varied in both seniority and scope.

This sector that has a strong customer service culture and employees imbued with it. Losing staff and operating below strength in any area puts pressure on a business. A shortage of staff in customer facing roles can be particularly dangerous as it makes it difficult to build and maintain relationships with customers.

Anecdotally there is much ‘poaching’ of staff from others in the sector. The high skill set, and knowledge base required in merchanting probably lends itself to this.

It is critical to have well trained and motivated staff. Your people are a highly important asset – are you getting the best from them?

And there is a high correlation between motivated staff and satisfied customers.

Recruitment
It is always important to ideally have a pipeline and to recruit the most promising candidates. Successful businesses must first sell the job to potential candidates and also to employees.

What channels to use to promote the role?
Employee Referral Scheme – very popular. People only recommend those that they would feel comfortable working with. A finder’s fee is an important gesture – only paid after the candidate completes the probationary period.
In store advertising – Every store has many customers and potential candidates passing through their doors every day – advertise your vacancy here.
Social Media – video clips – some are already doing this with Christmas ads, and Facebook is a highly successful promotional channel for many.
Local Press/Radio – don’t be too specific on language – 3-5 years’ experience etc.
www.hardwarejobs.ie – gets 2,400 views and 800 social media impressions per month.
Recruitment Agencies – especially if a role is complex with few potential candidates.

Treat people well during the recruitment process, many will have 2-3 job offers so how they have been treated will influence their decision on which employer to choose.

Also, it is important to acknowledge the receipt of CVs and let candidates know the process. The recruitment process reflects your image and reputation.

To whom to promote the role

Obviously, this depends on the nature of the role and the skillset required. So, as well as the typical pool of potential candidates perhaps those mentioned following are worth consideration.

(ex) Tradespeople – Hard to get at present, even the “retired” ones. There will always be some who no longer want to work on a cold, wet building site with irregular hours. In hardware/merchanting they are starting with a good knowledge base and they have credibility.
Older People – This seems to work for many merchants in the UK.
Post-primary students – From the MSS meetings it seems that there is no longer a queue for summer jobs for secondary school pupils. In Quarter 1 2022 HAI will be rolling out a marketing campaign to career guidance teachers in second level schools with a particular message for both transition year students and those in Leaving Certificate who are not intending to go to third level.
College students for part-time/summer/holiday – again in Q1 2022 HAI will be rolling out a campaign to third level institutions, community colleges and vocational colleges.

The focus will be on those with construction and architecture courses. The lure to students is that experience working in a hardware shop/merchant will give them an understanding of the products at a practical level and this will help them advance in their chosen career.

Many younger people have a genuine and heart felt interest in sustainability. Promote your strategy on this, and if you haven’t got one, or it needs to be improved perhaps make this part of their role.

Other Sectors – Both factories and hospitality have very unsociable hours. Currently in hospitality there is chronic job insecurity due to Covid.
Diversity – the success of many businesses is down to the hard work of many people who have come from abroad to make their homes here. And customers like to do business with those that they can communicate with- both in terms of nationality and gender.

Retention

What to offer – Financial Incentives
Increase wages – In government surveys of wage rates, retail is above that of hospitality. Within our sector rates vary considerably, but in the main they are comparable to and in many cases better than most other retail sectors. Soundings from MSS members would indicate that many members are now paying wages above those outlined in the Wage Survey from earlier in the year. In some cases, other sectors were luring staff by offering increases that could not be matched. For example, experienced staff on €33k were offered €42k to jump ship. All costs of running a business have increased from energy hikes to installing Perspex screens to running extra shifts to safeguard against Covid. Increasing wages has a knock-on effect – if one staff member is given an increase it will spiral, and other staff will be looking for similar.

Status is important, employees need to have their chest out – to be proud of what they do – it is important how people feel in their jobs. Wages are a part of this, and it is important to pay good wages.

Offer Bonuses – The MSS concluded that in their experience what works best is a basic salary and a generous bonus. As one member stated, “If companies are not paying a bonus in good times, they deserve what they get.” The bonus should be linked to the performance of the business. Bonuses by their nature incentivise and can be withdrawn at a time of a downturn in business. From the experience of 2008/09 it is preferable to reduce or withdraw a bonus in contrast to cutting basic salaries which is toxic.

Bonuses need to be innovative. A bonus is the single most valuable tool in changing people’s behaviour. People work harder and with a purpose. Quarterly bonuses, paid after each quarter have a teambuilding benefit. It can also have a binding factor – encouraging staff to stay. If they leave they forfeit the bonus. The activity improvement for the bonus can change each quarter. Quarterly bonuses are better than an annual one as the timeframe in annual ones may be too long and if it looks unlikely to be achieved staff can be discouraged.

Also, for sales reps’, gross profit and money collection can also be the target.
Incentivise staff by bonuses rather than increases in wages. Clearly link bonuses to the performance of the business and pay quarterly.

Share Options – It has worked in some US and UK companies. Generally, not seen as an idea that would work well in Ireland, especially as it may make it difficult to sell the business.
Staff Discounts – Some companies in the sector as an incentive, offer a staff discount – typically cost price + 5% + vat. It could be as much as 20% discount. This can be a major attraction for staff, at little real cost or at neutral cost to the business.
Offer attractive staff discounts.

Offer a better work/life balance to candidates
Since the onset of Covid-19 all business are dealing with staff attrition and burnout. We have all read stories of the “great resignation” – people having epiphanies with regard to their lifestyles. Emotional health is critical – with the current cloud of negativity many people want to work less hours and many others want to work from home. The work/life balance is increasingly important to people.

MSS members cited examples of how offering remote/hybrid working had worked for them in attracting and retaining staff. When sought and when feasible – offer remote/hybrid working – it can have a positive impact on staff morale and promoting it increases the pool and quality of potential
candidates for jobs.

Saturday and Sunday working can always be a challenge to get right. They have to be properly remunerated and to have a fair rota system.

MSS concluded that it is important to look at what sells the job in hardware and builders’ merchants to people. From interviews that members have conducted – in many instances it is the working hours – the fact that there are no late nights can be important – in contrast to hospitality and factory work.

Sell the benefits of working in hardware – more family-friendly hours than hospitality and factory work.

What to offer – Career Advancement
It was also mentioned that moving people around different branches as applicable, can be seen as a positive thing to do. It can create excitement and a feel-good factor.

Graduate programmes work well and these should be outlined in your job advertisements as well as including HAI brochures. Upskilling is crucial. If staff are not trained, how are they expected to do their job properly? – “If you don’t train them, don’t blame them.”

HAI offers The Certificate in Hardware Retail and Merchanting and a suite of training modules each spring and autumn that are bespoke to the sector. Members who are serious about upskilling their staff should avail of these
courses.

Training should be viewed as an investment. To work best it needs to be repeated and embedded as part of an employee’s career.

The first few weeks of an employee’s experience with a company is critical as to whether they will make a decision to stay or to leave.

Have a positive induction and a mentoring scheme in place for new staff. Offer more autonomy – Status is important, employees need to be trusted and given responsibility Stress that employees typically get to manage a department – much more quickly than they would in the supermarket sector. Also, they may have more autonomy on how that department is managed and merchandised – than they would in a supermarket.

Communication and engagement with staff
Studies have shown that there is a strong connection between engagement and retention of staff. It is important to have good communication with staff, without it rumour will fill the gap. Performance management, reviews of performance and a structured means of staff feedback are important. In a straw poll on the recent Fredericka Sheppard webinar, it emerged that about 50% of participants had these procedures in place. Which means that 50% didn’t!

Constructive feedback is important as it motivates, and it lets staff know the priorities of the business.

What to offer – Reward and Recognition
Award and celebrate staff achievements and milestones – Haldane Fisher are a good example of a company who are adept at awarding and celebrating staff on social media.
Form a social committee – so that staff have an input/ownership of social and recognition programmes
Health Services – Offer health checks to staff for goodwill – they show that the employer is concerned about their staff, and they typically cost about €20 per person.

Also, Peninsula offer confidential advice (Employee Assist Programme) as part of a programme for staff and HSF Health Plan offer very cost-effective health insurance.

Sometimes uptake on these services can be slow – 10% in year one, but 25% in year two. And it shows that the company cares for its staff.
Gifts as thank you – Hampers as recognition of good work done – they cost about €60 and they generate good will.
Awards scheme – after five years an extra day annual leave.
Breakfast Rolls – end of month.
Store of the Year – voted by peers – staff take great pride in this, and it gives a huge amount of peer recognition.
Wall of Achievements – works well.

And finally, rewards can become expectations, so it is important to be innovative.

And from experience Birthday cakes are awkward – someone can be forgotten, and others prefer to keep their birthdays to themselves!

Lastly (and if all else fails!) – Having some people exit can be a good thing. It can be a positive both for them and their employer. It can just be time for some to move on.

HAI have decided to offer Hardware Jobs free to members. In February we have marketing literature which will focus on the advantages of a career in the sector. We will send this to third and second level colleges and also community welfare officers and when feasible we will attend career fairs.