By
Bob Phibbs
Updated July 3, 2024
You don't want the reason you call them loyal retail employees to be because they don't ask for a raise, or they've been there for a long time without challenging you. You want loyal retail employees who are passionate about your business and who you are constantly working to develop.
On X, formerly known as Twitter, I discovered Mr. Steve, who tweeted, “Barnes and Noble just fires [sic] almost every single receiving manager as a cost-cutting measure. I worked with them for over 17 years and my weekly Storytimes are massively popular. And in the blink of an eye, I'm fired.”
He was featured in this article, which he posted as The King of Storytimes.
The location where he worked commented on his Facebook page, “The Norman store loves Mr. Steve and is mourning in the light of corporate staff cuts. There simply are no words for what Mr. Steve has meant to our store and to the Norman community.”
An employee like Steve is invaluable to any business. Not only does having a loyal staff reduce turnover so you can save time and money on hiring and training, but they also help bring in more loyal customers. When employees love their jobs and truly believe in your business, it shines through in everything they do.
A loyal employee provides an unmatched shopping experience that keeps customers coming back. Customers look forward to returning to a store when they’ve connected with a salesperson who truly cares about their job.
Loyal employees create loyal customers, so it’s not uncommon for customers to follow their favorite employee when they leave for a competitor.
How do you develop trust and loyalty in your employees so they add to your brand like Steve?
15 Ways To Nurture A Loyal Employee
To generate employee loyalty, you have to start with yourself. While trust and loyalty are traits that cannot be trained or taught, they can be encouraged by putting these techniques into practice. Work on as many of these areas of your business as possible, and you’ll surround yourself with employees who can’t wait to come to work when they wake up.
1. Have a winning company culture
You have to model respect for everyone from the janitor or busboy, to the warehouse clerk to the salesperson on the floor, to your vendors. When respect is given while managing employees, it is usually respected. An additional bonus is loyal employees spread the word and potential new hires will share similar values.
2. Guard the doors
You can’t just hire whoever will work a shift once a week and expect them to sign on to your values. You need to ensure it is a cultural fit, not just a convenience fit. This means taking the time to thoroughly assess potential hires for alignment with your company's ethos and goals. Establishing this fit early on can lead to increased loyalty, reduced turnover, and a more motivated team.
3. Find out what interests each employee
Sit down with your new hires and ask them about their favorite projects, what they’ve done that they love, the moments when they’ve felt most energized at their previous jobs, and their passions outside work. Armed with that knowledge, you can build loyalty immediately by aligning their responsibilities with what truly motivates them. This approach fosters a sense of belonging and purpose and maximizes their potential and job satisfaction. This is one of the most useful ways to drive loyalty, especially when managing millennials who need a greater purpose than just selling products.
4. Lead the team
You can’t hang out in the back office and hope people do their jobs. Leading means being seen, creating goals, and promoting passions and opportunities, but it also means correcting bad behaviors and letting go.
5. Give back
Younger employees especially are concerned and motivated by how your business is making your community a better place, not just a paycheck. Whether through ongoing programs or even a day when you all go and pitch in at a non-profit, your mission has to be bigger than just selling stuff.
6. Communicate clearly
You can’t manage by email. It is crucial to make sure everyone understands exactly what their job is and how to do it. Those who are really with you need you to communicate boundaries, not just goals. If you’re not comfortable leading and communicating, join Toastmasters and get some practice.
7. Review, reward, and recognize
Employees want to know how they are doing. Younger employees have grown up with constant reinforcement. While that is not practical in many settings, they won’t feel good about working for you if you don't give it to them.
8. Pay better than you have to
It’s simple: people with greater work ethics generally won’t work for less than they feel they are worth. Hiring at minimum wage and resenting paying new minimum wage laws creates a them-versus-us dynamic that employees pick up on. Good people cost more if you want them to sell more. And … when they are out there doing amazing work, other companies will try to poach them with more money.
9. Offer more perks
The most common perks in retail are employee discounts. Finding out what is meaningful to your crew is easy -- ask them. While it might be a 401K for some, a membership to SoulCycle or free parking might be motivating too.
10. Train your team
No one comes to your store fully formed. A culture of training means change, and upgrades are a way of life. Investing in your crew shows them you care and gives them new tools to avoid becoming jaded.
11. Cross-train your team
Your employee development plan should include working in other departments or jobs, if only for a few days. This can help employees make connections between what they do and how other departments support or work together. Pigeonholing someone to one job or department can make them bored and look for better opportunities to grow elsewhere.
12. Provide proper tools
Frustrated employees are the ones most likely to leave. Broken fixtures, old POS systems based on DOS, and scanners that don’t work all must be taken seriously if you want employees to stay. Equally important is providing ongoing training that empowers employees to efficiently handle such issues and adapt to new technologies, ensuring they feel competent and valued.
13. Have an open-door policy
Being heard is a big one for all of us. It shouldn’t be necessary to make an appointment or do a once-a-year review to talk to the boss. Be generous with your time, understand your employees, and encourage them; they may not have the same coping mechanisms as you do. You can also give them career coaching -- it’s never in your best interests to let someone become stagnant.
14. Stop micromanaging
It’s one of the hardest things not to do as an entrepreneur because you think no one can do it like you. But they could do it better if you let them. Give them proper training and mentoring, and let them show you what they can do.
15. Keep a wall
The best managers keep the pressure off the crew and remain positive. If sales are down, they aren’t sharing the worry and stress. That goes for personal lives as well. Maintain boundaries and let them do their jobs.
The true value of a loyal employee
I had a boss who once said, “Your job is when I say jump, you say ‘How high?”
Employees aren’t irrelevant; they are vital to any business's success. While I understand Barnes & Noble’s sales dropped during that holiday quarter, a wholesale purge of employees like Steve, who obviously added to customer delight, seems short-sighted.
Especially since Barnes & Noble, the one-time book-selling juggernaut, has struggled to compete with Amazon by providing a better in-store customer experience.
This is especially true because those longtime and loyal employees still saw retail management's capricious actions and will re-examine their own loyalty to such a management team.
Retailers lose loyalty from employees because they often forget that it is about what the individual brings to the brand, not just the cost of their employment.
Use these tips to grow loyalty with your employees. They can make your shoppers’ day when you make their day.
And that’s what drives customer loyalty and profitability.
