According to an article by Sophie Quinton which appeared in a March 23, 2013 issue of The Atlantic.com, the average American retail cashier makes $20,230 per year. On the other hand, entry level employees at convenience store and gas station chain, Quik Trip start at an annual salary of around $40,000 plus benefits. As a result, Quick Trip’s sales per labor hour are two-thirds higher than the average convenience store chain and its sales per square foot of store space are more than 50 percent higher.
The article goes on to say, “Entry-level hires at QuikTrip are trained for two full weeks before they start work, and they learn everything from how to order merchandise to how to clean the bathroom. Most store managers are promoted from within, giving employees a reason to do well. ‘They can see that if you work hard, if you’re smart, the opportunity to grow within the company is very, very good,’ says company spokesman Mike Thornbrugh.”
The lesson here is that if you want to clean up in the convenience store business, you have to pay above the market so that you can attract and retain good people and you have to take good care of them. Pretty simple stuff.
BlessingWhite, in their 2011 Employee Engagement Report,listed a finding that was particularly intriguing: engaged employees plan to stay at their current organizations because of what they can give. Disengaged employees, on the other hand, stay because of what they can get. This says very clearly that employee engagement is not just about money. It’s more about being able to make a valued contribution to something that matters.
It seems like every time the business media features a company with high level of employee engagement, it refers to the company’s methodology for dealing with its employees as being new and innovative. In reality, all companies with a high level of employee engagement do the same basic things: They hire qualified people who mesh tightly with the company’s culture, they pay them well, treat them well and then get out of their way and let them do their job. In return for this special treatment, employees keep their company ahead of the curve when it comes to innovation and they see to it that the company’s customers are never disappointed. This results in higher levels of repeat and referral business which translates into significant increases in market share. This is pretty simple stuff when you think about it; not rocket science.
My new book, The Engagement Formula, provides a common sense blueprint that guarantees full employee engagement. If a business organization follows this blueprint, 100 percent of its employee will become engaged with their work–all working at their full potential. Think of what this could mean to the success of any business–profit or non-profit. For more information, please click on the following link: http://rossreck.com/
Many business leaders today want to have it both ways: On one hand they want loyal hard working employees who are willing to do whatever it takes to make the business successful and, on the other hand, they want to pay them the least amount possible. The problem with this is that paying low wages creates distractions for employees which means they cannot give their full attention and effort to performing their jobs. For example, if employees aren’t making enough money to support themselves, they will worry and fret over how they’re going to make ends meet which means they can’t give their full attention to performing their job. This is why companies with a high level of employee engagement such as SAS, JetBlue, Google, NetApp and Southwest Airlines make it a point to provide their employees with compensation that is at or above their industry average and a benefit package that’s fairly generous. They want to minimize these distractions so employees can focus on performing their jobs. As stated on the SAS web site, “They (employees) should be freed from many of the distractions of day-to-day life, so they can focus on doing their best work.” Similarly, Eric Schmidt, Executive Vice Chairman of Google had this to say when discussing Google’s philosophy regarding employee benefits. “The goal is to strip away everything that gets in our employees’ way (of doing their best work).”
My new book, The Engagement Formula, details the role that equitable pay plays in achieving full employee engagement. For more information, please click on the following link: http://rossreck.com/