HR Corner Communication at the heart of retail success by Nicole Wong The fast-paced fashion industry depends on getting the message across In the retail sector where marketing strategies and operational requirements can change almost overnight, it is essential for frontline staff and the back-office team to recognise the importance of good communication. For more than 50 years as a prominent name in the local fashion scene, The Swank still believes that open communication is the secret to sensing new market trends and achieving business success. "Our primary principles are to promote interaction among staff within the company, and to provide the necessary information in a timely manner," says Sally Yu, the company's human resources manager. "Whether it's a formal or informal situation, we aim to give staff a clear understanding of the company's direction and of any changes which may affect their jobs." Usually, the starting point for this is the weekly department head meeting at which the management team discusses current performance and future strategy. Each department head subsequently briefs his or her own team about the key developments and other points raised. There are also monthly shop-in-charge meetings bringing together all the in-charges who run the stores. Department heads from the back office may also join in whenever necessary. On the one hand, these give an opportunity to explain business initiatives and new policies under consideration; on the other, they allow staff to reflect feedback from customers and express any concerns relating to HR or other departments. At The Swank, communication is not limited to formal meetings. Staff also actively participate in briefings and discussion sessions. "Our retail manager keeps in close touch with frontline staff, in order to pick up the latest market news and get ideas about how to improve operations," says Ms Yu. In this respect, frontline staff are encouraged to make suggestions but, if they prefer, can do this anonymously by sending feedbacks to the suggestion box in the office. We have a caring attitude and communicate as equals Personal touch The company also has an in-house quarterly newsletter, which records various PR and company events such as in-house fashion shows and staff long service awards. "It all helps to create a sense of belonging and can give employees a clearer picture of what is going on in the company," Ms Yu explains. To promote a stronger feeling of team spirit, the HR department regularly invites staff to share news of their personal lives, such as weddings, births and other special events. Employees also have the chance to contribute articles, book reviews or even recipes to the newsletter. The company's managing director also contributes articles in every issue of the newsletter. Ms Yu believes this is a highly effective way of improving interaction between management and staff, as it adds a personal dimension which helps to break down barriers. "It shows that we have a caring attitude and communicate as equals," she adds. "It is one reason we have always had very high staff morale and comparatively low turnover." Dynamic environment While the system currently in place has proved to be very successful in maintaining a high level of internal communication, Ms Yu points out that the key is to be flexible and always open to change. In the highly competitive retail sector, nothing stays the same for long. Staff at all levels must therefore be ready to act quickly if it's a matter of implementing a new marketing campaign or pricing policy. The same applies in operations and, to illustrate, Ms Yu mentions the situation created by the WTO meeting in Hong Kong last December, during which the business of some stores were affected. "The decline in business volume at specific outlets was sharper than we had predicted because of the presence of the protestors and traffic restrictions," Ms Yu notes. "In circumstances like that, we rely on close communication between all departments, but especially between the retail manager and the frontline sales teams, so that everyone knows about the emergency measures to be taken." On such occasions it is obviously necessary to think on one's feet. However, when information has to be released about the company's strategies, the timing is carefully planned. "As the retail industry changes so much, we wouldn't want the mistiming of an announcement to interfere with a particular campaign," Ms Yu says. "It is a delicate balance, but our aim is to remain flexible and to review the effectiveness of our communication strategy on an ongoing basis." Salient points Communication strategies in retail sector should be sensitive to market trends Informal meetings and discussions help to strengthen the relationship between management and staff Providing a steady flow of information about corporate developments promotes sense of belonging among employees Changes in competitor strategies or market demand have a direct impact on communication and publicity campaigns Taken from Career Times 3 March 2006, p. A14 Your comments are welcome at [email protected]