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January 14, 2011

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Lessons from Latin America

by jparker

I’ve spent the past few days visiting retail operations in Colombia with a client and was struck by the advantages of the staffing model here in this country and other countries in Latin America (LATAM).  While the model here is not likely to be adopted by retailers in the U.S., perhaps there are some good reminders and lessons.

Whereas in the United States where we have a mish-mash of employees working wildly divergent schedules, hours, and days, retail stores here are typically staffed with full-time employees who work six 8-hour days and make this their career.  In addition, approximately half of them work the first shift and the other half the second shift.  Staff turnover can run as little as 5% annually or less!

Think of the advantages of this model when it comes to commitment, product knowledge, workplace safety, loss prevention, human resources and the like.  Employees in this model “own” their part of the store and their responsibilities.  It is relatively easy to get a consistent message to all employees at the same time.  And, the stores we visited showed this through their merchandising standards, their employee engagement, and product knowledge.

Of course, it is easy to argue why this might not be practical in the U.S. or in similar markets, but it is a stark reminder to the challenges faced when trying to get consistent execution while managing part-time employees who might work as little as 8-10 hours in the week and where turnover can run over 100% annually.  In the U.S. model, how do you even reach your employees much less get them engaged?

This, of course, is the challenge my firm accepts when we work with our clients on their communication strategies and training programs.  Please let us know if you want to find out more about how we can help.

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1 Comment Post a comment
  1. Joe Oliveira
    Feb 8 2011

    Walter,
    You made a very point in regards to loyalty, low turn over rate, program execution etc in such markets. I have friends who own and/or operate retails stores in South America, staffed by full time associates only. In most of the cases, the employees have worked there for many years and make it their career path. It’s a win win situation for both employees and managers.

    Reply

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