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Staffing in Tough Times

Written by: Will Atkinson

Article Overview: Obviously budgets are tight and potentially getting tighter, but where and how do you trim budgets without negatively affecting your retail performance? We take a look at various facets of staffing and how to address them in a downturn.

Staffing in Tough Times

Retailing has a lot of associated costs, ranging from rent and utilities, to physical inventory costs, and employee staffing costs and marketing expenses. In a downturn, it is vital to revisit each of your cost categories and examine them carefully for potential trimming. Every little bit helps, after all...

But, you have to be very careful when cutting costs, because cutting costs in vital areas can significantly negatively impact your ability to do business. For example, you can't realistically reduce your inventory costs by reducing your inventory, that will lead to reduced sales. However, you can renegotiate vendor contracts and get better terms while being careful to maintain the appropriate levels of inventory without carrying needless overhead as I discussed in another article.

When it comes to staffing, there are many things to consider. How many employees do you have? How vital is each one to your operations? A trusted store manager is a valuable asset that gives you the freedom to grow your business in other ways, but what about other employees? Do you have dedicated stockers and inventory personnel? Do you have lots of full-time clerks? These jobs can be modified and combined to increase your efficiency without slashing tons of staff or reducing your ability to run a good store.

For example, your point of sale software should offer activity reports that help you determine what days and times of day you are busiest. Your computer system should also help you automate your inventory process. So, rather than having someone dedicated to inventory, and 3-4 clerks working in slow periods, assign 1-2 of those clerks to stocking and inventory maintenance during the slow times, improving efficiency and reducing costs. If you have really busy periods, then increase your staffing appropriately, which you probably already do. It's easier to add than to cut, but now is the time to take a hard look at your normal staffing levels to decide when you could do without that extra employee or two.

Now, we're not talking about firing people, but adjust your shifts and work schedules to match your real business needs. You can realize nice savings on labor costs that maybe you considered a fixed cost in the past. Add to that the savings from other aspects of your business and you may find that you are running a much better, leaner business, and that's a great thing, whether times are good or bad.

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Article Tags: computer system, downturn, efficiency, freedom, full time, inventory costs, inventory maintenance, jobs, little bit, many things, marketing, physical inventory, point of sale, point of sale software, slow periods, stockers, stocking, time clerks, vendor contracts, vital areas



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