HR Corner Staff retention starts with open communication by Nicole Wong A fast-growing company should design HR policies to fit their style of management and their staff The advent of the individual travel scheme for mainland visitors has given a major boost to business in Hong Kong and caused many retailers to put in place new plans for strategic growth. Evidence can be seen in the increasing number of recruitment ads and the exciting prospects for career advancement which some of them now promise. Inevitably, competition for talented sales and frontline staff is heating up and the more inventive employers are adopting a deliberately creative approach to both recruitment and staff retention matters. "Our HR department is still in the initial stages of development," says Jenny Chan, human resources manager for ZtampZ, an up-and-coming retailer of international fashion brands. "Instead of following any rigid policies, we have been very open-minded and creative in implementing different structures and ideas in the last two years." With 14 stylish outlets and over 100 young and energetic staff, the company has made interaction its key principle and sees open communication between staff at all levels as the basis for achieving a proactive atmosphere within the workplace. "We are constantly revising our strategies according to the feedback from staff," Ms Chan notes. Regular meetings are organised by all store managers as forums where frontline employees can give their opinions and put forward suggestions for consideration by the management team. ZtampZ has, for example, revised its commission scheme twice in the last year in order to reflect market trends and meet staff expectations. "Monetary rewards are a primary concern," Ms Chan explains, "but we want staff to see that they play a role in our decision making." Briefings are also conducted to give updates on any changes in corporate policy or business developments, such as the introduction of a new brand. "Since each employee is an integral part of the company, we want them to understand what is happening and to see how much depends on their hard work," Ms Chan adds. Room to grow This emphasis on involvement and participation is also closely linked to possibilities for career advancement. A common cause of rapid turnover of staff in the retail fashion industry is the hierarchy within many companies and the resulting view that opportunities for promotion are limited. "Most junior salespeople in the industry feel that frontline staff can never reach the top," Ms Chan points out. However, as a young company aiming to expand its business, ZtampZ has instituted a well organised and flexible scheme allowing talented staff to move up quickly and build exciting careers. Promotion is guaranteed for any junior salesperson who performs exceptionally during a six-month assessment period. Also, nothing prevents frontline personnel moving into managerial roles with more extensive responsibilities or, for example, becoming trainers looking after the induction of new recruits. ZtampZ places great emphasis on training and believes not simply in grooming successful salespeople but in producing professionals capable of working in any area of the retail fashion industry. A detailed training programme in customer service skills is conducted for all new frontline staff and regular workshops are run to explain the latest product information and fashion trends. "We believe in teaching our staff as much as possible, since this can benefit the company in many ways," notes Ms Chan. "By offering comprehensive training and career opportunities, we also help to create a satisfied workforce." Get together Since the daily routine can often be hectic, the company is conscious of the need to help employees maintain a sensible work-life balance. Social events are arranged for special occasions and informal gatherings are subsidised by the HR department. "Our intention is to bring the frontline team into contact with office staff, as well as with other companies in the industry," Ms Chan explains. Besides that, generous discounts are made available at ZtampZ outlets, at a number of other stores and at certain fashionable beauty salons. This attention to personal well-being and development is having a noticeable impact on staff retention. "In the past, we focused on more traditional HR issues such as recruitment and the commission scheme," says Ms Chan. "Nowadays, we have to follow market trends very closely and anticipate staff needs in order to come up with strategies that maintain loyalty and allow us to be competitive." A corporate culture that stresses openness has also been actively developed. "Open communication is essential for long-term staff retention," Ms Chan states. "We aim to establish the image of ZtampZ as a fair and progressive employer, where staff can share their views and are proud to be part of the company." Salient points Emphasis on communication between staff at all levels Regular review of company policies based on employee feedback Training geared to promotion opportunities and career advancement Recognition of need for staff well-being and development Strategies to maintain staff loyalty and remain competitive Taken from Career Times 14 January 2005, p. 32 Your comments are welcome at [email protected]