A blog on issues affecting Australia's newsagents, media and small business generally. More ...

Hiring employees

How to avoid hiring the retail employee who has failed elsewhere

It is only natural that people do not include anything in job applications that may hinder them getting hired when applying for a new position.

As employers we have to be vigilant in our review and research of each candidate on the shortlist for final consideration.

Here are some suggestions of steps you could take to reduce opportunities for hiring mistakes:

  1. Reject any applicant with unexplained gaps in their resume.
  2. If you have a good pool of applicants, reject friends of people who already work in the business.
  3. Ask them to bring photos from their previous retail roles showing things they have done.
  4. Contact employers for the last three years. Verify start and end dates. Again, be wary of gaps.
  5. Reject any applicant who only has traditional (old-school) newsagency experience.
  6. Ask specific questions:
    1. Do you have a police record?
    2. Have you ever been sacked? If so, why?
    3. Have you ever been put under performance management – i.e. issued a formal warning?
    4. Has a customer ever made a complaint about you? If so, what was it?
    5. Tell me two things you think could be changed in this business to improve it?
  7. If you have any doubt, don’t proceed.

Always hire with a period of probation. Use this to terminate anyone you are not complexity satisfied with.

9 likes
Hiring employees

A telling experience with job seekers

My newsagency software company advertised two new roles created in the business. The first role, the one seeking broader and more commonly available experience, was filled within 48 hours and the ad pulled to stop more applicants. Sixty applicants in less than 24 hours was more than was needed.

After talking to several candidates, I realise unemployment is worse than I had thought, especially among those with general or widely accessible skills.

The experience is guiding several changes for my retail businesses that I will write about soon, changes that reflect the economic situation, opportunities it presents and care the situation demands.

The experience also reminded me that for certain roles there are may good candidates. If you have employees engaged on a casual basis you have greater flexibility in being able to ensure you always have the right people on your team.

7 likes
Hiring employees

More newsagents should hire with a probation period

When hiring a full time employee for a newsagents I encourage newsagents to consider doing so with a documented probation period. This gives you the opportunity to not continue with full time employment should the employee not work out. It offers a framework through which you can deal with a new employee who does not work out.

If you hire a full time employee without a probation period you risk not having access to a mechanism for easily removing someone who quickly turns out to not be ideal for the role.

The Fairwork website has more on this including sample letters. Hiring with a probation period is easy as long as you follow some simple rules.

4 likes
Hiring employees

When an employee resigns by text message

While we as employers have considerable obligations to employees in terms of notice required for roster changes through to termination of employment, employees have far more flexibility. This was brought home to me recently when a casual employee with a regular roster of 38 hours a week sent a text message resigning an hour prior to their rostered start time on a Sunday morning.

There had been no complaint, no inkling of unhappiness whatsoever. Indeed, training was being provided for what we hoped would be a long-term retail career.

While I accept the regulations employees must adhere to, I think there is room to increase obligations on employees in some areas. In this instance, for example, I’d suggest some form of modest financial penalty would be appropriate for resignation at such late notice.

8 likes
Hiring employees

Position vacant: newsagency staff at Knox

staffwantedWe have a vacancy for a casual employee – offering good hours each week – at our newsagency at Knox City Shopping centre. While we have a sign out the front, I figured it’s worth mentioning the vacancy here. Click on the image for how to apply. It’s a busy shop with a non-traditional newsagency offer … a great place to learn innovative retail.

4 likes
Hiring employees

When hiring new employees and engaging with new suppliers newsagents should check their history

One thing to look for when hiring new employees is how long they have stayed in previous roles. If you like continuity in your business, look for people who stay with a business longer, especially if you are hiring for a full time role.

It’s important to take time to look at employment history, even when someone is with the one company for years. If they are changing roles every year or 18 months, maybe their eyes are always on their next role and not their current role. Healthy suspicion is important.

In corporate businesses developing intellectual property this is especially important. A candidate who has moved from role to role in two years or less will not get an interview with me.  I’m a loyal employer and look for loyal employees.  Resume builders – people who chase early success and then jump to another role to build their resume – are of less value to a business than more stead employees who may not be chest-beating stars but who do deliver stability and commercial benefit over the long-term.

It is hard to spot the resume builder. They are usually charming and can attract you to wanting them on your team with ease. Too often you don’t see them for what they are until it’s too late, until they have crashed and burned or have started to move to their next opportunity outside their current role – a role they have often not fulfilled.

This discussion about resume builder, selfish and opportunistic employees, can also apply to some people who work for suppliers we encounter or supplier businesses themselves in the newsagency channel – suppliers who come in and say they will save the day or who will give us new purpose. Often these people and businesses enter the channel in a blaze of publicity, talking up their past, attracting followers through charisma and show. Too often, they depart without delivering on their promises.

Newsagents need to be as wary of new suppliers as they are of prospective employees. We need to do thorough due diligence and engage with healthy skepticism. While we will want a smart, articulate and inspiring prospective employee or supplier to be good, great!, for our business, we need to impose a reality check and take time to see if they are likely to deliver on their words.

Now more than ever newsagents need employees and suppliers who can help us embrace change but who have the commitment, stamina and understanding to walk with us for the marathon.  That’s what we are in – a marathon, not a sprint.

6 likes
Ethics

Retail staff hiring advice: only hire and keep happy people

In a newsagency recently I heard a staff member complaining to a colleague behind the counter about the roster, the weather someone at home. I was several metres from the counter. Shoppers in the newsagency could hear too.

Unhappy staff are a turn off for shoppers and for the leaders of the business keen to create a happy place where people enjoy themselves.

We need to hire happy people and train them in their tasks rather than hire skilled people and hope to train them to be happy – if that is a choice you face.

Being happy in a newsagency can be a challenge some days with customers complaining about the smallest thing, some suppliers treating you appallingly, you discovering how much theft has cost you recently, your bank rejecting you banking a fake $50 note … and so on. Yes, there are many opportunities for us to be unhappy. This is another reason we need to surround ourselves with cheerful / happy people.

But there is plenty we see and hear in our newsagencies that makes us happy – if we look for it. If our natural disposition (as the owner and leader) is to be unhappy, we need to push back on that urge, we need to choose to be happy. Surrounding yourself with happy people is key to this.

We need to show unhappy people the door and encourage them to go work somewhere else.

18 likes
Customer Service

Great poster for hiring staff

I love the poster I saw in the window of a Grill’d hamburger outlet recently. It perfectly connects with the type of businesses Grill’d is. This poster is promoting the business as well as inviting applications for work.

I love how this is a local pitch even though Grill’d is a chain. I also love the approach and am likely to copy it.

Click on the image for a larger version.

1 likes
Hiring employees

The importance of personnel records

I have recently been through a Fair Work Ombudsman facilitated mediation for one of my retail businesses and the experience was a reminder of the importance of record keeping.

While I can’t go into the detail of the specific situation, the ultimate resolution of the matter was helped by having access to records not only covering the usual data such as hours worked and pay rates but also other material.

Based on this experience I’d suggest that newsagents keep notes in employee files covering:

  • The giving of any paid time off outside of requirements.
  • Any payment outside usual pay – for example, a bonus or sharing a prize reward given to the business by a supplier.
  • Discounts given on product purchases – if not practical consider how you could capture this.
  • Any other benefit of value to the employee give by the business.

It is worth taking the time to keep this information for the one rare time you will need it.

If you are not sure about awards or conditions, call Fair Work – I’ve found their people to be knowledgable and helpful.

8 likes
Hiring employees

The risk in small business penalty rates push

When I first heard about Katter’s Australian Party platform of lower penalty rates for small business I thought it was a good move, one I could support. Upon reflection, this may not be such a good move for us.

Imagine you’re a small retailer in a regional town with a regional shopping centre on the edge of town anchored with one of the major supermarkets and their partner variety / department store.  Imagine area has relatively low unemployment.  Imagine you’re looking for someone for Saturday and Sunday shifts and as a result of legislation giving you a different penalty rate compared to the majors someone working for you on a Sunday is paid less than working for a larger retailer.

The only way to address penalty rates is across the board, for all businesses regardless of size.

My issue with penalty rates is not related to business size. My concern is that we pay a premium for inconvenient hours, such as working on a Sunday. However, for many who work on a Sunday this is their day of work of choice or of necessity because of education and other obligations.

Many small businesses I know would struggle to attract good employees if they paid less per hour than other businesses nearby.  Indeed, I expect that should legislation pass allowing small businesses to pay lower penalty rates many of us would actually pay the market rate just to attract good staff.

This issue is considerably more complex than the slogan of lower penalty rates and I hope that Bob Katter and his followers consider that as they embark on their election campaign.

8 likes
Hiring employees

Swamped with applicants for junior newsagency role

I placed an ad on Seek for a full-time junior for one of my newsagencies. I was not happy with resumes being handed over the counter so decided to pay for a proper da.

Within twenty-four hours I had to take the ad down as I’d received more than 200 applications.  Now I’ve used Seek for this type of role previously – but I have never received this number of applicants in the first day.

Beyond the extraordinary response, I am enjoying looking at the diversity of applicants. Most do not come from a newsagency background and I think this is important for our future in the business for which we are hiring.

We are looking for candidates with initiative, fresh eyes, excitement and a love of small business / independent retail.  While it’s a challenge to find these qualities in a junior, I have resumes from some who show terrific promise.

10 likes
Hiring employees

What’s your revenue per retail employee?

I have been doing some work with newsagents recently on labour cost and comparing revenue per employee to gauge the roster efficiency, or otherwise, of a newsagency.

Revenue per employee is a good metric to compare as long as you agree on some common rules.  For example, I don’t include hours or revenue for non directly retail related activity, I add up all hours worked for a year and divide by 38 to get to employee years and I include commission only on agency lines.

I have seen newsagencies with annual revenue per employee as low as $98,000 and others with annual revenue per employee as high as $304,000.  In one of my newsagencies for which I have done the calculation the figure is $246,000 per employee per year. This is a retail only newsagency with what I’d consider to be a lean roster. However, we are into growth in gross profit.

Comparing newsagencies demands that the businesses are similar and this is becoming more of a challenge as our channel evolves and diversifies. For example, a newsagency with a higher than average GP could sustain a lower per employee revenue figure. This is why annual GP per employee is probably a better measure.

I’d love newsagents to share their annual revenue per employee figures here. Just calculating it is instructive and eye-opening. Working on it by trimming the roster and or driving sales is the essential challenge.  I’d love people to share their number so we can get a feel for the range in the channel.

This is not a competition, not at all. It’s a KPI we need to each be aware of for our respective businesses and to drive – for our future. Sharing can be motivating.

Check out revenue per employee data from the US National Retail Federation from 2010.

11 likes
Hiring employees

Finding new employees for your newsagency

A question I am often asked by newsagents is how to find new prospective employees.  Here are some tips which I have found helpful over the years.  Some are obvious and others, I hope, are new to you:

  • Put a sign in the window.  Explain the position, the hours and what you are looking for.  Be sure to state how they are to apply.  Have a position description behind the counter ready to hand out.  This should also list availability requirements.
  • Put a notice up at any local community group which has a noticeboard.  This should promote your business (with subtlety) as much as the job.
  • If it’s an after school position, let local schools know.
  • Depending on the nature of the role, talk to your local community job centre.
  • Email your customers.  They may know someone.
  • Publish an email on the newsagents@yahoogroups site – other newsagents often know people.
  • Advertise in your own monthly newsletter.  Don’t have a monthly customer newsletter? Start one!
  • Let businesses nearby know, especially hairdressers – they know stuff and they talk a lot.
  • If you want a big pool of candidates, use SEEK.com.au.  While it costs a bit, the response is usually immediate.  It’s worked for us.

I could have added – let your employees know – but didn’t because it’s often better to employ people who don’t know each other.

The wider the net you cast for your search for a new employee the more you are likely to catch.

Crucial to success are: a good ad promoting the role, a good job description which makes it clear what you are looking for and agreement among all involved in making the hiring decision.

I am sure there are more ideas than those noted here.  Add any you can think of…

2 likes
Hiring employees