The Importance Of Communicating With Your Retail Store's Employees

A lot of small retailers communicate with their employees in a manner that is best described as haphazard. For example, they might fail to tell every person on their staff about procedural changes, and then expect them to implement the changes seamlessly. Or, they may give employees the authority to make decisions without providing the necessary training to do so effectively. These and countless other circumstances can have a devastating effect on your shop's profitability. If your employees' morale is low, your customers will be dissatisfied.

Below, we'll explain the connection between communicating with your staff and your retail store's profits. You'll find the two are linked more closely than you may have thought. We'll also present the case for holding periodic meetings, and describe how doing so can help motivate your employees and improve their performance.

Think about the factors that encourage your customers to visit your store. They rely on the product knowledge and expertise of your staff; they enjoy your employees' willingness to not only sell merchandise, but to also help solve their problems; and they relish your staff's responsiveness. These are the hallmarks of satisfied employees. They understand the scope of their responsibilities, and the manner in which they are expected to fulfill them. Things have been clearly communicated.

Now, consider a retail shop where clear communication is less a priority. The employees may be uncertain regarding where their responsibilities begin and end. They might also be unclear about store procedures, and thus unwilling to make decisions. This type of environment usually leads to low morale. The staff becomes dissatisfied, a sentiment that affects their interaction with customers. Before long, customers become dissatisfied because they are not receiving the service they desire. They eventually visit less frequently, which reduces the shop's profitability.

The linchpin of this process is communication. The clearer it is, the more content your staff. The key is making certain everyone is on the same page.

Think of the "telephone" game children play. Details are given to one child, and communicated to another. The second child conveys the details to a third, and so forth down the line. The last child in the line would invariably provide details that are different than the original. This often occurs among retail employees.

Few store owners hold meetings during which they communicate procedures, policies, and other details to their entire staff. Instead, a few people are told, who are then asked to tell others. Information is passed from person to person until everyone has been informed. Predictably, the details change with each telling of them, causing some employees to follow different instructions than others.

This produces uncertainty and a lack of uniformity. As described earlier, employees become unsure regarding how to perform their jobs, and the procedures they should follow.

Holding staff meetings is inconvenient since doing so requires time and expense. But regular meetings are one of the best methods for circulating important information throughout your staff.

If your retail staff is failing to perform to your expectations, they either lack the ability or willingness. The former is usually a training issue, and beyond the scope of this discussion. The latter often stems from a lack of clear direction. So, how can you motivate your employees, and encourage them to perform at a higher level?

It begins with identifying barriers to communication. As we've discussed, holding regular meetings helps. So, too, will creating a procedure manual that clearly defines your store policies, and guidelines for operating within them.

These steps alone will improve your staff's morale. They'll have a clearer grasp of their responsibilities; they'll understand the constraints under which they are expected to meet them; and they'll gain confidence in their ability to help customers. These factors can dramatically influence your retail shop's profitability. If these steps aren't achieved you might find yourself going out of business and speaking with a liquidation company. Put the effort forth and improve your staff's morale.