Optimizing Performance and Saving Costs
Employee engagement and morale also rose, leading to a 20% reduction in turnover rates.
Additionally, the focus on performance and process improvements led to a 15% reduction in operational costs.
One national retail chain faced challenges with high employee turnover, inconsistent customer service, and rising operational costs. While the company was experiencing a period of growth, it felt its progress stagnating due to the lack of a strong base of knowledgeable employees.
The company needed a solution to not only enhance employee performance but also identify the root of the problem. In doing so, the chain hoped to reduce costs and boost customer service.
In 2020, the chain opted to implement a structured performance review system to increase accountability, facilitate communication, and pinpoint areas of need.
The system would include bi-annual evaluations, goal-setting sessions, and targeted training programs. Its goal was to enable supervisors and in-store leaders to analyze clear performance metrics so they could offer regular feedback.
Likewise, the company aimed to provide professional development opportunities that would improve performance in the long term.
To target each of its goals in one comprehensive strategy, the company decided to first focus its attention on communication. It recognized that a lack of a system to offer employees feedback left many feeling in the dark. It also believed that creating more opportunities to communicate with managers would ensure employees felt supported, therefore encouraging them to stick around.
The review system allowed managers to set clear, achievable goals for employees. For instance, sales associates were given specific sales targets and customer service objectives.
With a better understanding of their roles and how to exceed expectations, employees had a whole new perspective of the workplace. As a result, employee engagement levels went through the roof.
Bi-annual evaluations provided a platform for continuous feedback on both ends. Employees both received constructive feedback on their performance and were recognized for their achievements.
For example, a sales associate who consistently exceeded her sales targets was rewarded with a performance bonus, motivating her to maintain high performance levels.
However, evaluations also gave employees a space to share their thoughts with supervisors, helping them solve issues before they began to affect performance.
Performance reviews quickly helped the team identify skill gaps and training needs. The retail chain invested in targeted training programs, such as customer service workshops, to address these gaps.
The company soon discovered the value of knowledge for employee experiences. Customer service representatives who received specialized training in conflict resolution were able to organically create a 25% reduction in customer complaints within just a few months.
The review system encouraged employees to take ownership of their professional development. Based on review feedback, development plans were created, aligning individual growth with company goals.
RetailX saw significant improvements in employee performance and customer satisfaction within a year.
By improving employee engagement and reducing turnover, the company saved approximately $300,000 annually in recruitment and training expenses. Better retention of experienced employees also contributed to more consistent performance and customer service.
Additionally, the focus on performance and process improvements led to a 15% reduction in operational costs.
A robust performance management software like Plaudify empowered the company to communicate with employees proactively and gave them all the tools they needed to succeed. The resulting rise in service quality and employee engagement instantly confirmed that the team’s effort was well worth it!
