How employee happiness fuels retail success

Understanding employee engagement

Employee engagement is what turns a standard shopping trip into an extraordinary experience and leads to rave reviews and word-of-mouth, boosting a brand's reputation. At its core, it's about how connected and committed employees are to their work, which is directly reflected in their willingness to go the extra mile. And the good news is that you don’t need to guess your employees’ engagement, you can actually measure it. 

There's a range of approaches to measuring engagement: from Gallup's comprehensive 12-question survey to Gartner's 9 essential queries, and Lattice's extensive list of 35 probing points. James Timpson (CEO of Timpson Group) calculates engagement by using a simple happiness index within his company, his question is this: "On a scale of 1 to 10, how happy are you with the support you get from your team?"  

What is the "discretionary effort"

If employees are happy and engaged at the workplace, they might be willing to put in what’s called ‘discretionary effort’. This represents the extra level of effort that employees happily put in beyond their basic job requirements; when they are not asked to do so, but choose to because they feel motivated and committed. It's the additional input employees provide such as staying late to finish a task, going out of their way to help a customer, or coming up with innovative ideas to improve the business. This effort is a powerful indicator of an employee's engagement and satisfaction with their job and is often what differentiates a good retail experience from a great one. It's challenging to measure because it’s about capturing the intangible will to go above and beyond. 

In retail, discretionary effort can directly influence customer satisfaction and loyalty, as employees who put in this bonus work often deliver better service and create a more welcoming shopping environment. For businesses, tapping into this discretionary effort can mean the difference between meeting targets and exceeding them. 

Cultivate discretionary effort in retail

While surveys provide valuable snapshots of employee sentiment, they represent just a moment in time. The true challenge for retailers lies in digging deeper (beyond the data) to grasp the nuances of their workforce's experience and the external pressures they face. This understanding is pivotal to preemptively addressing the factors that erode engagement. 

Creating a more engaged team, one that naturally exhibits discretionary effort, isn't about finding a one-size-fits-all solution. It's a constantly evolving process that demands a commitment to: 

1 Pre-boarding engagement

Pre-boarding engagement begins by reaching out before day one, showing new hires they're valued and building anticipation to contribute, which establishes a positive trajectory for their future. We’ve shared some effective pre-boarding tactics in this blog post. 

2 Ongoing everboarding

Ongoing everboarding continues the momentum beyond traditional onboarding with a more holistic approach. By continually offering learning opportunities, you reinforce employees’ ability to meet and exceed challenges, often reflected in their eagerness to go the extra mile. For more insights, read our tips on everboarding. 

3 Commitment to upskilling

Commitment to upskilling demonstrates your investment in employees' futures through regular training and development opportunities. Employees growing with the company are more likely to feel valued and integral to the company’s success. 

4 Open communication channels

Ensure that feedback loops are maintained, letting employees know their voices are heard and acted upon. This openness encourages them to invest more deeply in their roles.

5 Executive involvement

Bring C-level executives into engagement efforts, reinforcing the company’s commitment to its workforce and setting the standard for the engagement behavior expected throughout the organization.

In essence, the journey to unlocking discretionary effort and achieving retail success is cyclical and continuous. Taking inspiration from James Timpson's approach - simply asking employees if they're happy and what could be improved - can be a powerful step in this journey. By dedicating time to genuinely understanding and enhancing employee happiness, retailers can cultivate a work environment where exceptional commitment is the norm, leading to outstanding customer experiences and, ultimately, a thriving business.