Canadian HR Strategy

Spring/Summer 2014

Human Resources Issues for Senior Management

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10 Executive Series Digest hrreporter.com Roundtable >>> I t's not surprising that employees want to feel recognized for their contributions and their 'above and beyond' efforts. Most organizations know the value of employee engagement and recogniz- ing and rewarding employees for good performance. What many may not realize, however, is that successful employee engage- ment is directly linked to positive customer experiences and, thus, the bottom line. Front-line employees are oen the main delivery mechanism of a brand experience to customers. ey also see, hear and observe their customers on a daily basis. It is a powerful combination when employees both understand the value proposition and are engaged enough to deliver the extra effort required to do what's right for the customer, as well as to share customer in- sights that can move the business forward. In many ways, employees are an organiza- tion's key differentiator and if they are moti- vated and engaged, they have the power to take brands and businesses to new heights. In fact, there is a direct link between em- ployee engagement and customer loyalty. In a recent study on customer loyalty con- ducted by Aimia, a global leader in loyalty management, the company found that, with the introduction of many new brands and so many new ways to shop, consumers clearly have more choice and switching behav- iour can happen anywhere in the customer experience journey. e research conclud- ed that when consumers switch their main retail store in a given category, price was the principle driver. However, when responders were divided into "switchers" (those with a higher propensity to switch) and "non- switchers" (those whose propensity was lower) the answer was different. Consumers with high switching behaviour placed more importance on 3 key areas: 1) Staff quality 2) Store design 3) e loyalty or rewards program Price, location and product quality will continue to be key drivers in customer retention but a brand's most vulnerable customers are more likely to be influenced by interactions with employees. If employ- ees are engaged, they are likely to go above and beyond, ultimately decreasing the risk of losing vulnerable customers. us, in order to engage and retain your influential employee base, along with increase customer satisfaction and reten- tion, a strategic employee engagement program is important, if not critical. Hav- ing an employee engagement program that is adaptable and innovative is as important as having a strategy. When considering how to recognize employees, it is impor- tant to consider how it will be received and to ensure that it is constantly evolving. It's imperative that people feel valued in a way that is personal to them. e most effective way to accomplish this is to ensure multiple opportunities and methods of delivering recognition. By responding to the voice of the employee, and ensuring they are recog- nized and rewarded in a way that is person- ally meaningful, employees will not only feel valued, but connected and committed to the organization and the brand. And if employees are connected and committed, you'll find customers will be too. Aimia, a global leader in loyalty manage- ment, has unique capabilities and proven expertise in delivering proprietary loyalty services, launching and managing coalition loyalty programs, creating value through loyalty analytics and driving innovation in the emerging digital and mobile spaces. In Canada, Aimia owns and operates Aeroplan, Canada's premier coalition loyalty program, as well as a proprietary loyalty division that designs, launches and operates new client programs including employee engagement programs which drive customer loyalty and profitability. Our Positive Engagement Model offers a dynamic recognition and incentive re- ward experience fostering strong engagement with your valued employees. For more infor- mation, please visit: www.aimia.com. EmployEE EngagEmEnt anD thE CuStomEr rElationShip By Stephane Latreille, General Manager, Retail, Aimia At Cara, the biggest struggle is with business owners, said Wyllie. "We can't actually force them to behave in ways that are remark- able and demonstrate exceptional leadership, so that's a big struggle for us and it is a gap for us." e company has worked to build an accountability model that holds the franchise partners accountable to specific areas, such as food safety, she said, but Cara doesn't have that same accountability when it comes to how employees are treated. "e leader has to declare it's non-negotiable, so the way we treat our people internally has to be as exceptional as the way we treat our guests or the way we're meant to treat our guests… at's a big process that requires a long journey but if we can do it and get there, then we'll set an example, for one, and then hopefully others will learn from that. But we're so far from that right now because they own their own business. It's very challenging." It's similar for Shoppers Drug Mart, said Van Eck, as HR can only influence, encourage and provide the tools. "At the end of the day it's their decision," she said. "But we've found that, over the years, as they saw the results of that higher en- gagement and the impact it can have on their bottom line, they began to buy into it. And now it's almost become a little bit of a contest sort of between the stores and the VP of operations to see who's at what levels because those results get shared, so it's definitely got traction." Bonus: roundtable videos See videos at www.hrreporter.com/engagementroundtable. continued from page 9 Employee Engagement

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