American Public Media’s Marketplace ran a Freakonomics Radio piece this week about customer service. As is true for most of their work, it was entertaining and made a great point. This week I also spoke with a long-time friend who is working with Sheetz, the Pennsylvania-based convenience store chain, as they aggressively expand in North Carolina. Both experiences had a similar theme. When you’re talking about employee quality, you get what you pay for. Pay more to get rid of the grumps.
The Marketplace story makes a simple, really an intuitive point. If employers spend more to attract and retain quality employees, they will take better care of the customers, helping beat the competition with service that drives customer loyalty. Costco and Trader Joe’s are two examples. I would add Sheetz to the list.
As my friend was describing the Sheetz environment, he explained that all employees in the organization, right down to the part-time cashier working a few hours a week, earn a bonus based on the store’s performance. If the unit hits its goals, all share in the rewards. Performance above goal juices the bonus and all get more. Deliver the goods and get more green in your pocket. Simple! The plan has created a culture where the entire team cares about sales, service and profitability. My friend also shared that they have been able to attract great employees from their competitors, hurting the other business twice with people and market share victories.
Compare that to other companies that view payroll as a cost that should be reduced whenever possible. These are the places where people work when they have no other option, but quickly abandon when better opportunities arise.
If you own or manage a business, there is a lesson to be learned. If you care anything at all about your customer’s experience, better employees matter. They will stay longer, learn more, provide better service and build a loyal customer base. When viewed as a cost to be minimized, employees at the low-wage employers will deliver quality commensurate with their pay. Business leaders, make a decision. Do you want the grumps on your team, or your competitor’s?
Bill Florin writes on business and entrepreneurism when not busy helping clients with their career marketing needs at Resu-mazing Services Company.