HR Corner Retail business built on stable workforce by Charles Mak In a sector where staff turnover is notoriously high, one retailer adheres to a fundamental principle Any enterprise which has been an established part of Hong Kong's retail scene for close to 100 years and is still going strong must clearly know a thing or two about how to deal with people – both customers and employees. The Wing On Department Stores (Hong Kong) Limited, which will celebrate its centenary in 2007, has been able to maintain tradition over the years while also moving with the times, and has done so largely by focusing on people. "Whatever we do, we consider them first," says Lannie Lee, the senior manager in Wing On's human resources division. "We are known for having a 'high touch' approach which has worked well and we have seen no reason to change it." One result of this is that, while the overall rate of staff turnover in Hong Kong's retail sector hit 14.5 per cent in 2004, Wing On recorded only 6.1 per cent. With a well-founded reputation for quality and reliability, the company has an established market niche and does not believe in an unnecessarily aggressive way of selling. Instead, the emphasis is on dedication to service, consolidating a loyal customer base and putting trust in a workforce which spans at least three generations. "We introduce changes progressively so that everyone – staff and customers – can get used to what is new," says Ms Lee. "You won't see any dramatic changes because we aim to keep a balance in all our lines of business and we value stability." We aim to keep a balance in all our lines of business and we value stability Within the last few years, the company did not impose pay cuts, make staff redundant or enforce periods of unpaid leave, despite wrestling with the same fundamental problems as other businesses. "We are committed to taking care of staff welfare," Ms Lee emphasises. "For example, when we did have to close the Telford Gardens store, we informed staff a few months beforehand and helped them with internal transfers, outplacement training or finding other jobs." As a result, not a single labour dispute or complaint was filed. If staff ever do resign, the company will explore options for transfers to other departments in an attempt to retain their skills. "There's no reason why we can't discuss how to make things work for the company and the individual involved," Ms Lee says. A new move In April this year, Wing On established a management trainee programme and took on three recruits in the first phase. "We are looking to the younger generation to further enhance our business prospects," Ms Lee says. "We hope they will help us to introduce some new concepts." The company's strategic plan is to expand the number of recruits in subsequent years. "That will depend to some extent on the programme's effectiveness," she adds. The qualities looked for are general acumen, enthusiasm for the retail industry, dedication to serving others and good educational qualifications. Successful applicants will be trained as future store managers, destined to take care of 100 to 180 staff and manage all day-to-day operations. Meanwhile, another 100 new staff will be recruited for the grand opening of the Tsim Sha Tsui store in August. For that, two recruitment days have already been held and four more are being planned. While the major targets are frontline staff, including salespersons, cashiers and customer service representatives, office staff are also needed. Prospective candidates should be mature and courteous, capable of speaking basic English and Mandarin, and be prepared to upgrade their service skills in order to exceed customer expectations. "An internal survey has been carried out and 44 staff have voluntarily chosen to be transferred to the new store. That is based solely on personal preference," Ms Lee explains. "Anyone assuming additional responsibility to train new staff can also expect promotion." An extensive range of in-house and external training courses is constantly on offer. In particular, the company believes it is very important for staff to keep in touch with external influences and see how other businesses operate. Continuous on-the-job coaching is also used to develop skills and equip staff with the necessary knowledge. The generally high rate of turnover may create a false impression that it is easy to land a job in the retail sector. Ms Lee points out that is not the case at Wing On. Numerous applicants are attracted by the reputation, job security, guaranteed commission and good remuneration packages. "We have a well deserved reputation, but we don't want to create any illusion about what it takes to join us," she concludes. Salient points Deal with changes progressively to ensure continuity Balance all lines of business and aim to keep a stable workforce Commitment to taking care of staff welfare and development To retain staff, options are available for internal transfers Management trainee programme started to attract new talent Continuous focus on training and the development of new skills Taken from Career Times 3 June 2005, p. 16 Your comments are welcome at [email protected]