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The future of frontline leadership? Empathy

The future of frontline leadership? Empathy

The last couple of years have been challenging for retailers. Government-imposed restrictions and social protocols have impeded the ability of many merchants to keep their doors open. Now, as those restrictions loosen and we slowly and methodically move toward a new kind of “normal,” the industry is faced with a different kind of challenge in the form of a talent shortage. 

Thanks to “The Great Resignation,” scores of retail workers have left their jobs and, in many cases, the industry altogether. It’s causing headaches for many, leaving merchants scrambling to fill roles within their stores. However, it’s also brought some organizations to realize just how important their frontline staff are in helping them achieve their goals and objectives. 

And, according to Sarah Jordan, CEO of specialty toy and book retailer Mastermind Toys, it’s imperative for retailers to lead their teams with empathy and compassion.

Over the past two years, Canadians have faced a variety of impacts and new experiences as a result of the pandemic,” she says. 

“Companies must empower frontline employees by leading with empathy and compassion to inspire innovation and creativity. Leaders need to be considering how there’s strength in being empathetic and courage in being compassionate. These are the qualities customers and employees are seeking now more than ever.”

In order to continuously improve the culture at Mastermind Toys – a retailer that employs a workforce across its head office, warehouse, and 68 stores coast-to-coast – Jordan ensures that she and her team consistently facilitate touchpoints that allow her to stay connected to employees of the brand. Quarterly employee surveys, Town Halls, and Nudge used daily by their “Play Experts” (a.k.a. store associates), provide an incredible opportunity for employees from all levels to come together, share ideas, and better understand the ways in which their colleagues contribute, leading to a deeper collective appreciation for the work being done. 

Jordan suggests that empathetic leaders also have a profound impact on the performance of frontline employees and the overall corporate culture and values. But the benefits of creating a culture of empathy and compassion run even deeper. According to a report by Development Dimensions International, leaders who approach their jobs and engagement with employees with empathy display interaction skills that are more effective than those who do not practice empathy. The report indicates extremely strong links between a leader’s levels of empathy and the quality of their decision-making, coaching, engagement, planning and organizing, and overall performance. 

Here are 4 ways Mastermind Toys’ empathetic frontline leadership motivates and inspires employees:

1. It inspires creativity, innovation, and performance

When it comes to employee performance, a recent study by Businessolver reveals that 72% of employees believe that empathy drives motivation, while 84% of CEOs believe that it drives better business outcomes. According to Jordan, it does both.

“The impact of an empathetic mindset is tremendous and goes a long way toward shaping and enhancing an organization’s corporate and workplace culture,” she says. “ It impacts every corner of the business, helping to motivate employees, drive innovation, inspire creativity and reach business results together.”

2. It boosts employee engagement

In addition to enhanced employee performance, one of the more meaningful benefits of empathetic frontline leadership is a highly engaged group of employees. It’s a benefit that Jordan says can really galvanize a team of individuals, adding that the critical support is strong communication (case in point: over 90% of Mastermind Toys employees reported that they understand the business strategy in a recent employee survey). 

“Constant communication with frontline employees definitely helps to keep them engaged,” she asserts. “But, in retail especially, employees become trendspotters that drive innovation and inspire change when there is that trust in place and open lines of communication. And, in building an engaged community, you create an environment where people are excited to be part of the team.”

3. It fosters honesty and transparency

According to Jordan, ensuring that lines of communication are always open is an important aspect of an empathetic approach to leadership. It also makes it easier to elicit feedback from employees, encouraging inclusiveness and trust.

“At Mastermind Toys, we pride ourselves on embracing a culture of co-creation, where we ask employees for feedback, really listen to it, and then communicate back how they have been a part of our innovation. Co-creating with your employees is most effective when you lead with empathy and compassion because it gives your employees permission to be honest and transparent and the space to bring their authentic selves to work. In our latest employee survey, we heard 90% of our employees say they trust their supervisor – a number we believe represents the work we’ve put into ensuring we create an open and safe environment.”

4. It drives greater retention

Leading with empathy doesn’t simply help to engage employees, however. It also serves as an incredibly powerful tool to help retain that talent.

“When you can create an environment that’s inclusive, providing employees with work-life balance and flexibility when it comes to scheduling, you earn their trust,” says Jordan. “We were provided an example of this over the past holiday season. When the industry was concerned with labour shortages, we welcomed over 75% of our seasonal shift leaders back to Mastermind Toys for another holiday season.”

Tips for leading with empathy

According to Jordan, if a retail leader is able to cultivate and nurture a culture of empathy and compassion within their workplace for frontline employees, the rewards are immense. The employee experience drives the customer experience – encouraging and empowering frontline teams will keep your customers coming back.

In order to start down this path, Jordan has three pearls of wisdom to offer:

1. A culture of care and compassion is established by the CEO

“The CEO needs to be the leading brand ambassador – the person who brings the company values to life and sets priorities that are consistent with the brand purpose. When this is the case, the objectives of the brand and its vision and purpose motivate employees, inspiring them to come together as a team to deliver innovation and impact.”

2. Genuinely listen to your employees, and then act with intention and speed

“Actively listen to employee feedback to uncover insights and then create a roadmap of next steps to reinforce that their contributions matter. The follow-through plan and execution by leadership is just as important as getting employee buy-in and it encourages exponentially more insights shared. Employees are often simply looking to see progress, not perfection, from their employer.”

3. Leading with empathy and compassion lets your team play to their strengths.

“As a leader of Mastermind Toys, I have found the most rewarding part of my job is the opportunity to elevate our culture by showing up as an authentic leader and encouraging others to do the same. When employees can be authentically themselves, their strengths shine through.”

Though empathy and compassion are not often at the top of the list of skills referenced when assessing the strengths of any leader, they are increasingly coming under greater focus and consideration as a new leadership style whose significance has been amplified by impacts of the pandemic. And, it’s a leadership style that Jordan believes is exactly what today’s workforce deserves.

“People are looking for purpose-driven organizations and leaders to work for. Over the pandemic, Mastermind Toys formally articulated our purpose and values that have always rung true within the company, but it was important that we strengthened these pillars of who we are by clearly communicating them to our people. We are more than a toy store – we are Canada’s Authority on Play, whose purpose is to inspire generations of lifelong learners through the power of play. When employees understand your purpose, and the role they can play in achieving this purpose through living out your values, it develops a greater sense of connection across your teams and builds your unique company culture.”

The true value of investing in retail employee training and development

The true value of investing in retail employee training and development

Retail operation is, regardless of the category or vertical, a complex ecosystem comprising a number of different layers and components. From location, product assortment, and pricing to merchandising, marketing, and inventory management, each cog in the retail wheel needs to be functioning at a near-optimal level in order to contribute toward the overall success of any organization. 

But  efforts made by retailers within these areas wouldn’t be possible without its people. According to Kevin Graff, retail training and development expert and Founder and President of business management consulting firm Graff Retail, the current talent shortage blighting the industry should make retailers take notice of the value and differentiating potential inherent in providing strong employee training and development for their employees.

“If you expect your employees to remain within your organization, it has to be about more than just showing up to work,” Graff says. 

“It’s death just waiting to happen if employees are turning up for shifts for the sake of working shifts. What opportunities are you providing for them to learn, collaborate, share ideas, grow and develop? People have always wanted these opportunities. But today, there seems to be a growing expectation of them. If an employee isn’t happy within their job, there are about ten other jobs they can get tomorrow. So, why are they going to continue working within their current jobs? If the retailer isn’t going to nurture their employees and help them grow as individuals, they’re going to need to pay them lots of money and offer phenomenal benefits. But, that’s a short-lived game because eventually someone else comes along and offers more money and better benefits.”

Graff goes on to underscore the importance of providing retail employees with training and development opportunities, stressing the significance in doing so toward satisfying their needs and improving the experience enjoyed by today’s workforce. 

In fact, his notion is supported by findings within a recent LinkedIn Workforce Learning Report which reveals that an astounding 94% of employees say that the provision of learning and development opportunities would be a strong enticement for them to remain in their current jobs. And, the increasing demand for learning is especially true among younger generations, with more than a quarter (27%) of the Millennial and Gen Z cohorts stating that a lack of training represents the number one reason they’d consider leaving their jobs.

Given this growing sentiment around training and development, it seems clear that offering employees the right learning opportunities will help merchants and businesses significantly decrease turnover. However, Graff says that employee training isn’t just a powerful tool that can be leveraged to retain talent within the organization. There are numerous other benefits that can enhance the business and the employee experience, not to mention differentiate the brand from competitors:

1. Increased employee engagement

One of the most compelling and meaningful benefits that results from providing employees with opportunities to grow, says Graff, is their increased engagement with the brand and its objectives.

“How do you, as a business owner, get your employees to care as much about the business as you do? By providing your employees with the right opportunities to learn and grow, they start to understand and connect to the vision of the business, which then supports their ability to execute on the brand promise and work toward its overarching objectives.”

2. Greater clarity concerning roles

Along with increased engagement, Graff points out that by building employee learning and development processes, retailers also help define expectations within the organization, creating a basis for employee success.

“Effective training and development go a long way toward clarifying roles for employees, reinforcing through this type of investment the fact that they’re incredibly important to the business. It defines expectations from a behavior perspective and helps employees better understand how they’re contributing to the success of the business and their colleagues.”

3. Enhanced collaboration and performance

A greater understanding of their individual roles and the roles of their colleagues, explains Graff, then results in increased collaboration and performance. In fact, according to recent Gartner research, employees who have received adequate development opportunities within their organizations are 44% more likely to be high performers than those who have not been offered the same or similar formalized training.

“It just makes sense that an engaged employee who understands their role within the company will be more able and willing to execute at high levels. And when you put your employees in this kind of position, you’ll see a consistent rise in average basket size, conversion rates and ultimately sales.”

4. Sparking creativity and innovation

In addition to increased employee output, another layer of performance that’s positively impacted by the implementation of employee training and development is the levels of creativity and innovation within the organizations offering it.

“An employee who feels valued and important with respect to the overall goals and objectives of the business is an employee who wants to share ideas and insights,” says Graff. 

“It’s as simple as that. And when your entire staff feel this way, collaborating and contributing toward the success of the business, everyone wins.”

5. Improved employee and customer experience

Despite the many benefits that result from providing employees with learning and growth opportunities, Graff insists that the greatest payoff is in the enhanced experience that customers of the brand receive. After all, he says, providing exceptional service is what retail’s all about.

“As a result of a recent decrease in foot traffic to physical brick-and-mortar stores, interaction with the consumer is more important today than ever before. Store managers don’t often control the product selection, price, store design, or really much of anything else within the store. But where they do have impact is in the performance of their staff. How you hire, train, manage, coach and lead your employees is directly correlated to the levels of staff knowledge and quality of service that’s provided and, as a result, satisfaction among consumers.”

Considering the current talent shortage faced by retailers across the industry, a shortage that’s presenting significant challenges with respect to staffing frontline customer-facing positions, Graff suggests that the time is now for organizations that are looking to develop or enhance their training for frontline staff.

“For retailers that don’t have an employee training program within their business, they have to get started on building internally today, and they have to move fast.”

However, he adds that as important as the creation of a training and development regimen is, so, too, is the consistent review and analysis of the needs of the business and employees, as well as the effectiveness of the employee training offered.

“Training and development programs should be constantly evolving. They’ve got to align with the changing needs of the business, the expectations of employees and evolving consumer behaviour, tastes and preferences. If you’re not doing a top to bottom review and analysis of your training programs on an annual basis in the least, it’s like having a binder in the cupboard that nobody looks at. The implementation and execution of training and development programs are important. But the reinforcement strategy is equally critical in keeping the program alive and functioning optimally.”

As the world moves collectively toward a resumption of ‘normal’ activity and people in communities everywhere begin to venture out more in search of experiences, increasing physical retail footfall, it’s clear that the quality of in-store service and interaction is going to be paramount in determining success and failure. As a result, it will be the employees on the retail frontlines who will be responsible for delivering these outcomes, rendering the investment in the training, growth and development of their skills the most important for retailers to make going forward.

How developing a culture of diversity, equity and inclusion can attract and retain top retail talent

How developing a culture of diversity, equity and inclusion can attract and retain top retail talent

We’ve been talking a lot over the past few weeks about what retail workers want, and how retail organizations can overcome The Great Resignation by changing the way they support their staff. Today, we’re exploring how investing in diversity, equity and inclusion can attract and retain top retail talent. 

Getting top retail talent to your organization can prove, during the most certain of times, to be immensely challenging. And, given the importance of staffing stores with the right people for the right roles in order to deliver on the experience customers are expecting, the need for retailers to do so is critical.

To support the objective, retailers must possess a deep understanding of the needs of today’s retail workforce, an appreciation for the things they’re looking for from prospective employers and a willingness to deliver on those needs and wants. And, at the very top of the list is a yearning to be part of a diverse, equitable and inclusive workplace environment.

In fact, according to a recent McKinsey & Company survey, developing and fostering strong diversity, equity and inclusion (DE&I) initiatives within any retail organization is paramount today with respect to attracting talent. The survey reveals that 39% of all respondents stated that they have either turned down or decided not to pursue a job because of a perceived lack of inclusion at an organization. 

But… What exactly is DE&I within the retail context? How does the development of these initiatives help support staffing efforts? And, how can retail businesses take the first steps toward achieving such a culture within their organizations? 

What is diversity, equity and inclusion?

Diversity, equity and inclusion within retail refers to the efforts undertaken by organizations to create a more welcoming workplace environment for prospective employees. According to Anne-Marie Pham, Executive Director at the Canadian Centre for Diversity and Inclusion, these efforts should encompass the entirety of society and take into account the many faces and voices that it’s composed of.

“Retailers that are looking to develop strategies and initiatives aimed at creating a more comfortable and inviting environment for their employees need to consider every dimension of diversity,” says Pham. 

“That includes gender, sexual orientation and identification, race, religious and cultural backgrounds, languages spoken, levels of ability and more. And, because we now have the social permission in Canada to talk about diversity, equity and inclusion, driven primarily by global events over the last year-and-a-half, many retail workers across the country, particularly among the younger generations, are seeking employment with brands that are purpose-driven and aligned with their values of respect for all.”

Why should retailers care about diversity?

Fostering diversity and inclusion throughout the retail organization, from head office executive positions all the way down to in-store associates, makes perfect sense from a customer acquisition point-of-view. Those who can properly reflect the ever-expanding social tapestry of Canadian society will almost assuredly generate an eclectic range of foot traffic to their storefronts. And, says Pham, it’s an effective recruitment tool as well.

“In order to function optimally, retail organizations must rely heavily on many individuals from an array of different backgrounds. So, from a talent acquisition and retention perspective, DE&I initiatives provide merchants and brands with an excellent opportunity to create a culture that will appeal to a range of diverse talent, offering them an environment where they want to go to work every day,” says Pham. 

“It’s an environment that should encourage everyone to bring their whole selves to work, including aspects of their background, lived experiences and life circumstances, facilitating and supporting a sense of belonging for everyone.” 

The benefits of diversity, equity and inclusion in retail

In addition to the development of DE&I initiatives fundamentally and ethically being the right thing for retailers and other businesses to undergo, the productivity and related financial benefits that organizations receive as a result are significant. 

According to a recent survey conducted by The Harvard Business Review of 1,700 companies around the world, those operating with an above-average level of diversity within their organizations experience 19% greater innovation revenues and 9% higher earnings before taxes. And, in Pham’s estimation, it’s all the result of a more engaged and inspired workforce.

“If a welcoming and comfortable environment is developed, one that makes employees feel included and respected, a level of trust and loyalty to the employer will become a natural consequence,” she says. 

“In turn, their trust results in higher levels of engagement, which then leads to greater collaboration and productivity, bringing out the most thoughtful and innovative ideas, enabling any retailer or brand to be much more responsive to the needs of an ever-changing market.”

For a real-world example of the benefits that can result from DE&I initiatives and the development of a truly inclusive work culture, one needn’t look any further than global retail giant Walmart. According to Statista, the company posted worldwide sales in excess of $711 billion in 2021, up from $666 billion in 2020 and $654 billion in 2019. They are earnings that are reflective of the significant year-over-year increases in revenue experienced by the multinational corporation. And, according to comments made during an interview with Winsight Grocery Business by former Walmart DE&I Director, Donald Fan, they are financial results that are made possible by the company’s culture of diversity.

“By embedding equity into the talent lifecycle, you enrich your employees’ experience; thus, you accelerate their engagement and productivity and make your team high performing, dynamic, and resilient,” explained fan. 

How to begin building a culture of DE&I

A recent global survey conducted by Mercer found that 74% of participating companies reported to have been placing greater focus and emphasis on diversity, equity and inclusion initiatives midway through the COVID-19 pandemic, with 64% actively reviewing talent management processes, such as hiring, in an effort to identify and mitigate potential biases.

For retailers that are committed to developing a culture of diversity, equity and inclusion, but have yet to formalize their strategy, Pham says that there are a few steps they can take to properly and effectively kickstart the process.

1. Commit to learning

Retailers that are new to the DE&I conversation must be open and willing to learn more about the topic and about the lived experiences of individuals. “Read books about DE&I, watch documentaries and read the news in order to understand and build compassion and empathy concerning the many systemic challenges that many face when accessing equality and inclusion within the workplace. Through this education, leaders will gain a greater sense of humility, compassion, understanding, and a heightened awareness of themselves in relation to others,” she says.

2. Conduct an honest assessment

Retailers will want to conduct an assessment of their organizations, the representation on staff and how internal DE&I initiatives might improve their level of diversity and inclusion. “Listen to the concerns of your employees and customers. This can be done through surveys and one-on-one conversations with team members at different levels of the organization,” says Pham. 

“It can also include the engagement of a third-party expert who can help review current policies and practices. This will allow retailers to understand whether or not there are any real or perceived barriers to employment or equity within the organization, as well as help them to identify any unconscious biases that can negatively influence the ways they do outreach, screen applicants, conduct interviews and make their selection at the end of the day.”

3. Commit to change

In order to put the education and assessment to practical use, retailers should determine what is required of them in order to effect actual change within their organizations. “Influencing this kind of change often requires a shift in mindset and philosophy which always starts at the top,” says Pham. 

“To do so effectively, leaders must determine which resources will be required and whether or not a budget is necessary in order to create the positive impact that they desire. And, everyone must be involved in the shift at the executive level of the organization to lay the foundation and set the direction for others to follow.”

Pham goes on to explain that the creation of a workplace environment that is truly diverse, equitable and inclusive requires a substantial amount of dedication, commitment and hard work. And, she adds, it also requires time to develop plans and initiatives and implement the right policies and procedures to actually change or positively influence the culture of an organization. However, she says that once retailers embark on their DE&I journey toward workplace improvements, the momentum among customers and employees of the brand will accelerate rapidly, resulting in the attraction of a greater number of prospective retail workers, increased engagement among staff, and an enhanced ability to cultivate and retain top talent.

What retail workers want: Employee engagement secrets from a retail staffing expert

What retail workers want: Employee engagement secrets from a retail staffing expert

Retail is all about people. It’s about the excited customers who enter your stores. And it’s about your retail workers who are responsible for providing the engagement, service, and exceptional experience that keeps customers coming back. 

However, with retailers currently in the throes of a major staffing crisis, store operations are being impacted industry-wide. Retailers are struggling to adequately staff their stores. And, according to Suzanne Sears, retail staffing expert and president of Best Retail Careers International Inc., this mass exodus of retail talent is driven by the fact that they just aren’t getting what they want from their employers.

“Retail staff right across the country are quitting their jobs,” says Sears. “It’s creating a massive problem and adding to a crisis around staffing that had already been triggered by the pandemic. And why are they leaving? It’s most often because they got what they consider to be a better job.” 

According to Sears, that’s leading to a lot of instability, particularly around employee development. “If you want to train and grow talent within your organization, you need them to stick around long enough for that to happen. And if your talent doesn’t stick around, your service levels plummet and your ability to grow the company suffers tremendously,” says Sears. “So, retailers across the country have got to better understand what their employees want, and give it to them”

So what do retail workers want? Here are Sears’ top 5 must-haves for any retailer looking to attract and retain retail workers.  

1. A strong brand vision

According to Sears, employees today – especially those of the younger generations – are seeking employment with the brands that are most aligned with their values and the things that they believe in. This is a global trend. Edelman’s recent Trust Barometer 2021 reveals that 71% of global workers expect their employer to reflect their values, possess a greater purpose, and to engage in meaningful work that shapes society. It’s sentiment that Sears says is gaining momentum, becoming the top consideration among job seekers today:

“The reason any brand can get people to work for them is because of the company’s vision – what it stands for and represents. I can’t even count how many candidates will turn down an organization because they’ve heard negative things about the brand. A brand’s values have always played a role in influencing people who are looking for employment. But it seems to have grown in significance as a consideration recently. Ensuring that you stand for something and that the company has a sense of purpose resonates a great deal with people today, more so than ever before.”

2. Growth and employee development

Although a strong sense of purpose will help attract talent to an organization, it won’t keep them there, Sears asserts. The trick to motivating retail workers, empowering them and making them feel valued? The promise of education and development is key. In fact, according to a recent Randstad survey, 52% of Canadian employees consider career progression to be an important benefit offered by employers. It’s a component of recruitment and retention that Sears says is becoming critically important for retailers to offer if they want to provide the service customers are looking for: 

“Retailers have got to provide a real, tangible platform for the growth and development of their employees. This includes training and education and an opportunity to progress and advance within the company and their careers. And, when looking at the younger generations, they are more highly educated than any other generations before them. They come from a culture of continuous learning and expect to have learning opportunities available to them throughout their lives. Providing training and education is highly rewarding for employees and keeps them engaged with the brand, providing them with clarity concerning their individual roles and the direction of the company in general.”

3. Flexibility

Randstad research also indicates that flexibility within one’s employment is another top concern of prospective employees, with 81% of Canadian workers stating that flexible work, such as the ability to choose their own hours, is highly important to them. Yet only 52% say that it’s a benefit that they enjoy within their current job. It’s an aspect of employment that Sears says is reflective of the tenor of the times that we live in, and an increasingly critical factor in a brand’s desirability:

“Flexibility with staff is a major draw to the brands that are willing to provide it. There has been an evolution in thinking among Canadians over the course of the past couple of years. They’re prioritizing themselves more than ever and seeking opportunities that allow them the ability to find greater balance in their lives. Retailers that are able to offer this in the form of more flexible scheduling and hours, and leave of absences, will find that they’re attracting the interest of a good majority of retail workers looking for jobs.”

4. A positive employee culture

Prospective retail workers also seek a positive employee culture in which to work. According to Sears, the creation of a strong employee community is very much centred around compassion and understanding, and includes considerations like the flexibility mentioned above, as well as mental health and wellness initiatives, and employee recognition and rewards programs. She says that it often doesn’t cost retailers anything in providing these things for their employees, yet yields incredible returns for the brand:

“It goes without saying that a happy employee who feels valued and important is a highly productive employee. When you build a positive workplace culture, you’re setting the tone for your staff and the experience they offer customers. And, the results are astounding: elevating levels of teamwork, morale among staff, the job satisfaction rates of individuals on the team and, in the end, overall productivity. It’s a no-cost move for any retailer to make. And, it doesn’t just serve to attract employees to the brand, it serves really well in retaining their talent as well.”

5. Diversity, equity and inclusion

A critical component in supporting a positive employee community is the concerted focus and effort of retailers toward creating a culture of diversity, equity and inclusion (DEI). It’s another initiative, explains Sears, that ends up serving as an extremely strong talent attraction and retention tool. In fact, a survey by ADP Canada and Maru/Blue revealed that 47% of employed Canadians aged 18 to 34 believe they would “be more loyal to their organization” if it placed greater emphasis on DEI. Sears explains: 

“To find the right kind of talent to your organization, you’ve got to make sure they feel welcome and comfortable as a contributing member of the team. Once in the door, if an employee discovers that the culture is not diverse and inclusive, it often ends up in a quick departure. Opening up your recruitment and hiring processes to attract the very best, despite their gender, race, sexual orientation, or identification, is going to benefit any retailer immensely and lend toward the creation of a truly diverse and inclusive culture.”

There’s no doubting the magnitude of the challenges that organizations face when it comes to the retail staffing and employment crisis currently impacting the industry. However, there are clear opportunities in front of retailers to attract and retain top talent by providing a range of non-monetary benefits. By leading with a strong brand vision and providing comprehensive training and development within a positive, flexible and inclusive work environment, retailers can overcome their staffing hurdles, differentiate their brands from competitors and stand themselves well for future success and growth.