Sunday, January 17, 2016

The #1 Incentive Small Business Should (But Don't) Offer

It was my first day at an upscale department store known for their outstanding customer service.  I had completed the new-hire training courses on the register.  I was dressed for success and knew the only rule they start you out with: No Gum on the Sales Floor.  That's it.  If an issue arrises, I was empowered to do what it took to make the customer happy.  No escalating issues to management necessary. 

As I nervously hit the floor that morning I was worried.  I grew up in a very rich city with a poor valley.  I lived in the valley.  I had grown up with affluent children who were used to yearly vacations to Mexico so I new how to act, but I secretly wondered if anyone knew tbe truth.  I was from the other side of the tracks.  I put on a brave smile and said hello to my first customer. 

Turns out selling baby clothes is ridiculously easy.  They are so cute they sell themselves.  As I was feeling confident at the check stand Mary Ellen came on to the floor.  Since it was Sunday, she was our lead for the day.  And boy, did she know it.  She made sure I was pushing the correct buttons on the register (I was) and most importantly, to only use one sheet of tissue for wrapping.  Wrapping clothing for the shopping bag or for a gift, she ensured that I knew that we had profit sharing and to save the company money when possible.  One of the easiest methods, according to this experienced and dedicated salesperson, was to cut tissue to one sheet.

This all made sense to me, and my respect for Mary Ellen grew in leaps and bounds.  One sheet still looked very presentable, two or more sheets was not necessary.  By cutting the cost by at least half, we were adding to the bottom line.  Increasing profit for the company directly benefited us as employees with profit sharing.

This is the genius behind offering employees a full, comprehensive benefits package that includes profit sharing, or at the very least an Employee Stock Purchase Plan.  Not only does the company enjoy the obvious benefit of retaining higher quality employees with lower retention, but the profits are literally increased by the effort solely of the employees dedication to saving the company money.  No further effort besides education is required. 

Human nature is always down to survival and looking out for one's best interest.  Even the kindest person ultimately still has to look out for their own interests.  So by putting their own interests first, which humans will always ultimately do with rare exception, they are also putting the welfare of the company first. 

The key element that increases profit building is the education of employees.  Organic, employee to employee interaction usually creates a stronger desire of the employee to participate rather than boring, company-led seminars tooting the benefit package.

Had Mary Ellen never had said anything to me, I would have continued to use two or more sheets of tissue paper for every single customer I helped.  Not only did she help me see the company as a friend, but I made sure to pass on the message to newbies.

This upscale department store has been successful for over 100 years.  They are known for their outstanding customer service, which is provided by their sales force.  By offering an incentive to put the customer (and therefore profit) first, the company and employee win.