For the past six months my local town has been facing many store closings. Although we have always had a vibrant downtown area, retail establishments seem to be unable to keep their doors open lately. Week after week it seems that another store is closing and no new stores seem to be coming in. Similarly, in several organizations I have worked with in the past year seem to be experiencing a revolving door of employees. More employees seem to be exiting at a greater rate than new employees starting.
What is causing both phenomena to happen?
In a nutshell, both store renters and employees are facing an unsustainable environment. Although some of the factors may differ, there are overlapping feelings of resentment and anger that propel a store to close or an employee to leave.
Five reasons stores close or employees leave:
1. TOO MANY RULES
As in many communities, my town has an abundance of detailed codes and guidelines that retail establishments must follow. Signs must look a certain way and only specific colors may be used. There are designated parking spots and not many of them. In a similar way, the organizations I worked with that have been experiencing high turnover have many procedures that employees must follow. Often one rule may not fit everyone’s situation. Sometimes people need more time off or flexible work hours due to challenges in their personal lives. There may be a hierarchy of who people need to report to even though they may have a better relationship with another individual.
2. NO ONE CARES
The shopkeepers constantly bemoan that the town officials are clueless and unwilling to make adjustments or be flexible. There is a feeling that every retail establishment has to be the same as every other. In some companies, there can be a disconnect between what senior leaders see as critical goals and what the individuals on each team can achieve. Employees aren’t asked for their input and suggestions.
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3. NOT ENOUGH MONEY
Of course money plays a role in both stores and employees leaving. The rentals in our town are sky-high and many stores can’t keep up with the pace of increases. Although they have an uptick in traffic, they have a difficult time making ends meet. People in the organizations who decide to leave may feel they are not fairly compensated. Instead of meeting with the employee who is upset, there is a set policy for salary increase and that’s what stands.
4. LACK OF TRUST
Stores vacate and employees run for the hills when they are promised one thing and never see it happening. Credibility is destroyed when town officials say they will change parking rules but never do or companies say they will look into more flexible time adjustments, but refuse to even have a discussion about it.
- We can’t get in the habit of saying we will make a change but never follow through. Do what you say you are going to do.
- Listen to the concerns of others to build trust.
- Maintain an open mind and heart to make the necessary changes to keep stores and people in our towns and organizations.
5. LEAVE WITH DIGNITY
Stores that leave need to keep their reputations in tact and cannot afford to bad-mouth a town. Employees who leave also must do so in a business-like way. In a recent fascinating Harvard Business Review article, there was a study done on the ways people quit their jobs. Although many employees followed standard notifications, there were some who burned their bridges. For many of us, we will often meet people again in our careers and that means we owe it to ourselves to be professional in our exits.
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How do you lead during periods of high turnover? What has helped decrease employees from leaving?
Loved this article because you’ve pinpointed a trend that is continuing around the country…brick and mortar stores are closing! In many instances, landlords are asking prohibitive prices for rent. And/or they are faced with so many rules and regulations that city and town councils act more as disruptive forces than one trying to build community.
Thanks for reminding us that all of this impacts employee morale…
These trends are a bit scary and contributing to community financial concerns. Hopefully local towns will brainstorm ways to entice different type of establishments, not just retail to rent the available spaces.
With employees a little more flexibility and care goes a far way.
Thanks LaRae for adding your great insights to the conversation!
Stores in my town are closing too and, no surprise, there is a HUGE turnover of talent. Part of the reason here is I live in a transient community. However, I, like you, believe that there are things leaders can do to create somewhere that people want to stay and when they do leave, they are advocates for the organization as they backfill their positions (and grow!)
I suspect that one of the biggest challenges I’ve seen falls into your no one cares bucket. People are seen as replaceable and creating a great place to work falls low on the list. Similarly, some shops that have managed to stick around in my town are warm and welcoming to all of their customers and create a memorable shopping (and browsing) experience.
Will share!
~ Alli
I love your idea of creating a community and downtown area that is “a great place to work”! To do that stores need to be important and valued by a community and residents need to support local shopping. Also, local retailers need to provide incentives as well as show concern for their employees so people choose to work at that organization.
Thanks Alli for your fantastic perspectives!
Hi Terri,
Love the parallels here – never thought of it in terms of the comparisons you make. You’ve got me thinking.
#2 No One Cares has me reflecting upon the importance of showing appreciation to both employees and shop keepers. Words of thanks go along way. Thanking an employee for staying late to wrap up the latest changes to the budget process shows we care. And thanking a sales associate who bent over backyards to help find the perfect outfit for an upcoming prospect meeting demonstrates we noticed.
People want to be respected and recognized. They want to matter. The truth is that we are always leading in one way or another, in all walks of our lives. And stepping up as a leader means showing that Some One Cares.
Will share.
Terri
You are spot on Terri with showing appreciation to both employees and shopkeepers! I love your examples of ways employees go beyond their responsibilities and lead with gusto. We all want to feel that we are being recognized for the contributions we make and that we are seen as valuable and helpful to others on our teams. Maybe the shopkeepers need to be told how important they are to our community and what value they add to our downtown area. Now that may go a far way.
Thanks Terri for your helpful additions!