The world of retail is hyper-fast, competitive and laser-focused on margins and return on investment (ROI). Learning and development (L&D) teams outside this environment have enough challenges, but those in retail are under immense pressure to perform and produce results. With turnover averaging around 60% in today’s competitive labor market, teams often feel like they’re constantly pushing Sisyphus’s rock just to keep everyone trained and up to speed.
Many companies in this space are taking a different approach to onboarding their people and seeing marked improvements. It starts with getting L&D involved at the outset and setting new hires up for success.
For example, Sport Clips informs new hires about leadership pathways while supporting those who prefer to remain stylists. This approach fosters future leaders, enhances employee satisfaction and has led to a 5% increase in retention through training and development opportunities.
Here are six essential tips for designing an effective onboarding program in a retail environment:
- Start early. The first day on-site can be pretty overwhelming. Make sure new hires have been given basic information in advance of their first day. This can allow them to review, digest and ask questions before they start. It also can ensure they get the most out of the training.
- Build your team. If people are being hired in groups, get them connected before they meet on-site. This can reduce anxiety and build peer relationships and help showcase that the onboarding process is not just a short-term requirement for their current job, but as a long-term investment in their career.
- Lead the way. Let new hires know right away who to turn to for help. Most people will look to a coworker before turning to another resource. It also can create an opportunity for mentorship for longer term employees.
- Toss the FAQs. All new hires typically have similar questions. Instead of a static list of frequently asked questions, build micro-learning content around each topic that can be referenced as the need arises.
- Show what’s possible. It’s never too early to let new hires know what kinds of career development opportunities are available to them. Waiting until after onboarding misses an effective engagement tool. In addition, ongoing training and development can help them better prepare for new positions within the company, increasing retention.
- Provide continuous support. Front-line workers thrive when equipped with proper support, whether through job aids, micro-learning, coaching or job shadowing. Without the confidence that comes from having the right tools and someone to turn to, they’re more likely to leave. Supporting them is crucial not only for their performance but also for their well-being. Employees who feel valued can be more likely to stay longer, perform better and often leave as enthusiastic brand ambassadors when the time comes.
Onboarding in retail is a race against time. Retailers not only need to bring new hires up to speed quickly but often must train them on every aspect of the job. It’s no wonder a recent McKinsey study revealed that the quit rate in U.S. retail is the highest among all sectors, which exceeds the national average by over 60%.
A recent study “Front-line Worker Skills Growth and the L&D Disconnect” by Lighthouse Research found that workers who feel they have the training necessary to perform on the job are three times more likely to stay with their employer than those employees who do not. The study also uncovered that putting L&D front and center during onboarding can have a huge impact on outcomes, both short-term and long-term including:
- Boosting new hire retention.
- Shortening time to productivity.
- Building leadership pipelines.
- Improving performance.
Catalyst research found that reducing front-line workforce turnover by 10% can save $4-7 billion across industries, but it takes a commitment to develop new hires, not just train them. An employee’s first impression of the company is critical and sets the tone for their experience moving forward. People who feel supported, engaged and prepared can feel better about staying long-term and excelling in their work.
