People Management (http://www.peoplemanagement.co.uk/pm/articles/2010/07/sainsburys-appoints-gwyn-burr-to-top-hr-role.htm) recently reported on Sainsbury’s decision to merge the HR Director and Customer Director roles at Board level which has raised some eyebrows in both the retail and HR communities. But should it? As retail experts we understand completely that the customer is king but for customers to feel that way, employee skill sets should be developed to reflect this, enabling the enhancement of the dialogue and experience between retailer and customer. Talent management, career planning and succession planning are all established processes in large companies but small businesses should also take note of the fact that striking this balance can absolutely provide a competitive advantage. Any HR Tool Kit should have a customer service slant that shows the connection between engaged employees who have been well inducted, trained, coached and developed and the ROI demonstrated through excellent customer service and ultimately a positive effect on the bottom line through increased sales.
No other major retailer has an equivalent role to that created by Sainsbury’s. Innovation in business is the way to success and as Business Consultants feel that more businesses should take note. However, that doesn’t mean ‘bolting’ on the HR piece to a role that focuses on the customer. For real business benefit this focus needs to be truly integrated into the responsibilities and, more importantly, accountabilities of the role. It might be as simple as developing a programme of Helping Managers to Manage or looking at the culture of the company – listening to what employees have to say through climate surveys can have an incredible impact on employee engagement and motivation. If employees truly feel valued, listened to and part of the business then their resultant relationship with customers will be optimised and enhanced.
But, at Retail Remedy we wonder whether companies should think about the cost of not thinking about “people” in the rounded context of business. In the current climate many businesses who have an excellent blueprint are failing. The product and price may be excellent, location a plus but without the people element being effectively addressed it can mean the difference between survival, coupled with potential future growth and shutting up shop.
Whilst it may be about viewing figures for the mainstream channels, Mary Queen of Shops and Ramsey’s Kitchen Nightmares have both shown that without the right people with the right knowledge, skills and attitude, failure isn’t too far away.
So whichever viewpoint you favor, companies ignore the value of managing and developing people and employee engagement at their peril.
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