Retail is one of the most highly-competitive industries. Retail consumption is estimated to contribute to approximately 2/3 of the GDP for the United States. What does this mean? Potential for great profits.
To keep a foot in the ever-changing retail landscape, all internal systems of your business must be running at peak performance to outdo the external opposition. The best way to do this is with workforce optimization. Workforce optimization hones in on the individual practices that occur on a day-by-day basis to better understand what can be improved upon to maximize efficiency, productivity and, ultimately, profitability. By utilizing workforce optimization and well-structure Engineered Labor Standards (ELS), you can set you retail business to reign supreme.
Eyes on the prize!
The Components of Effectiveness: Efficiency versus Productivity
When thinking of effective business practices, both efficiency and productivity immediately jump to mind. The combination of the two is the recipe for profitable success. Understanding what each of the ingredients to this winning recipe are is important for creating proper ELS to support workforce optimization. With a vetted ELS in place, workforce optimization can function at its highest level.
It is generally accepted in business that efficiency versus productivity is equivalent to saying quality versus quantity. Although both necessary distinctives individually, the profitable power comes from the combination of both. Having a productive employee who is not efficient means a lot of work output at low quality, leading to a loss of profit. Efficiency without enough productivity cannot meet supply and demand, and also affects profitability. There needs to be a well-balanced combination. Workforce optimization is the solution.
Power of the People
The core of workforce optimization is the workforce itself: your employees. Your employees are your directors of first impressions, your product experts, your money managers and your advertising aficionados. By examining the individual practices that contribute to both the efficiency and the productivity of your employees, workforce optimization will bring the best out of your business.
Efficiency in regards to employees in retail is mainly comprised of excellent customer service. You want your employees to always be able to provide the utmost level of customer service to return to your business the highest rates of customer retention.
The best type of retail business is repeat business, making
workforce optimization for efficient employees extremely important to long-term success.
For example, let’s examine the importance of manager/employee relationship communication and how effective ELS and workforce optimization can achieve this goal. Once your business has implemented a well-tested ELS, the systems in place for day-to-day processes should be optimized. One way this is accomplished is through automation of menial tasks, like time card management. With these processes in place, your management has more time to be in constant and consistent communication with employees, allowing performance monitoring to promote improvement and reinforcement.
Having regular communication between employees and management is
essential for a successful retail business. Workforce optimization helps create this time.
Proficient retail employees are employees who maximize what is accomplished in the amount of time worked in a shift. Overall employee proficiency for your business comes from getting the maximum amount of work without having too many employees scheduled at one time.
Workforce optimization will allow for creating specific tactics to ensure that the highest level of proficiency is being received and maintained by all employees. Utilizing methods such as automated attendance tracking and schedule analysis allows for improvement upon ELS. A quick and easy clock-in method leaves more time for work and less room for human error. Analyzing scheduling trends that provide the most profitability at peak hours will allow for the application resources efficiently for maximum productivity.
There are so many more ways that workforce optimization can be incorporated into your retail business. Request a free consultation today and learn how we can assist you in workforce optimization!