Keeping Workers at the Farm

Friday, June 21, 2013

Compared to most employers, turnover in the retail industry, which is heavily dependent on part-time workers, is relatively high. In May 2012, the Hay Group reported a turnover rate of 67% among part-time employees, an increase of 33% above 2011. Sourcing, recruiting, training, and retaining part-time employees is time consuming, expensive, and distracts from the three key objectives in retail - sales, sales, and repeat sales. As the economy slowly improves, how do retail employers retain part-time workers?

As Lauren Weber reported in the Wall Street Journal on June 10, 2013, one retail employer is trying a different approach. The Cumberland Gulf Group, which owns and operates Cumberland Farms convenience stores and the Gulf Oil brand, plans to re-classify some 1,500 employees as full-time. This will allow those employees to become eligible for the Cumberland’s health care plan. In addition, Cumberland is re-classifying workers based on 30 hours per week rather that the previously required 40. Thirty hours is the floor for full-time employees under PPACA as of 2014.

While some retail employers are thinking and then rethinking a reduction in workers hours to avoid health care mandates, The Cumberland Gulf Group’s actions appear to be unique. In October 2012, Darden Restaurants, which owns the Red Lobster, Olive Garden, LongHorn Steakhouse, Bahama Breeze, Seasons 52, The Capital Grille, Eddie V's and Yard House stopped offering employees work schedules with more than 28 hours, as reported by Newsmax. Then on December 5, 2012, Candice Choi reported in the HuffPost Business that Darden had a somewhat change of heart. Darden will not reduce the hours of current full-time employees but may rely more on part-time employees in the future.

Ari Haseotes, President/COO of Cumberland Farms’, indicated that Cumberland planed to make “employee satisfaction and retention a corporate priority”. Haseotes went on to link tenured employees with both the speed and quality of customer service. “Our people know how to speed a customer through checkout quickly, how to use our ovens to make a pizza or sandwich right.”

Highly competitive businesses must find ways to attract, retain, and motivate ALL workers, especially part-time employees. As with hiring any employee, there must be a fit between the expectations of both parties, if the relationship is successful. Since many part-time jobs are and will always be, part-time, ensuring part-time employees understand that premise is essential for employee engagement and motivation. It should be clear to part-time employees that schedules may vary from week to week, even day to day and their availability may be on an on-demand, just-in-time need.  This allows both to enter the relationship with full knowledge of each others expectations.

As the old adage states, “Honesty is the best policy”.