Effects of Retail Store Image Attractiveness and Self-Evaluated Job Performance on Employee Retention

Summary by: Ian B. Mondrow, M.A.

The costs of a single hourly employee turning over will cost an organization approximately $3,000 to $10,000 (Turnover costs sack retailers, 2000; Gustafson, 2002 as cited in Yurchisin & Park, 2010). Within the retail industry, a sales associate average length of employment is only 80 days (Masters, 2004 as cited in Yurchisin & Park, 2010). This turnover results in customer complaints pertaining to poor customer service and employees with little knowledge or expertise of product knowledge. Previous studies have discovered that organizational commitment is a key factor in employee turnover and turnover has been found to positively correlate with job satisfaction. It was hypothesized that the attractiveness of an organization may be linked to an employee's commitment to the organization.

Yurchisin & Park (2010) were successful in obtaining surveys from 211 sales associates.  Only 21.1% were identified as full-time employees. Unfriendly/Friendly , unorganized/organized, and unreliable/reliable from the semantic differential scales were used to obtain the perceived store image. Each of the items provided anchors to assist participants in selecting the correct adjective. Surveys also measured store image attractiveness, self-assessed job performance, internal job satisfaction, organizational commitment, and intention to leave.

Results from the survey revealed that positive store image had a relationship with job satisfaction (t =6.25, p<.001) and organizational commitment (t =8.29, p < .001). An individual that had high self-assessed performance was more likely to have high internal job satisfaction (t = 5.01, p < .001) and a negative relationship with intention to leave. Both organizational commitment and intention to leave were positively related with internal job satisfaction. Finally, organizational commitment was found to have a negative effect on one's intention to leave.

IMPLICATIONS FOR HR PROFESSIONALS
This study reveals that while store attractiveness does increase job satisfaction and organizational commitment, one's self-assessment is crucial to determine if an employee is likely to leave. Therefore, it is important that managers are encouraging of their employees and are dedicated to the development of their staff. Once an employee's self-perceived performance increases, so will his/her job satisfaction and commitment to an organization. In turn, this will have a positive effect on the store image. From this, we can see that all these factors are connected. Employee satisfaction is not cut and dry but driven by a collection of factors. As HR Managers, we need to ensure that employees feel appreciated and that they feel they are successful in their job. By doing so, it is likely to lower turnover.




Source: Yurchisin, J. & Park, J. (2010). Effects of Retail Store Image Attractiveness and Self-Evaluated Job Performance on Employee Retention. Journal of Business Psychology, 25, 441-450.

Private rooms for employees?

Diversity is crucial to an organization's success but at times, barriers may arise. For instance, a mother may insist that she wants to breast feed her child. It is clear that not all employees would be open to seeing her breast exposed. Other issues may include Muslim employees who need a separate place to worship, transgender employees that require hormone injections and more.

Companies are beginning to realize that they must adapt to these needs in order to attract and retail top talent. A professor once told me about an organization that offered private nursing rooms. I thought it was an ingenious idea that could be taken further. These rooms can be utilized for breast feeding, medical needs (i.e. insulin injections) or private worship. Why should we limit a private space just for mothers when it can be adapted to appeal to other audiences.

The one concern with private rooms is the possibility of employees abusing the rooms (i.e. using illegal drugs, sexual relations, etc.). To overcome these risks, the company provide rooms that will not have locks on the door and instead has signs that can switch from occupied to unoccupied. A lock on the door welcomes deviant behavior and by removing this feature, people will be less likely to abuse the facility. In addition, place the private rooms in a central location where supervisors, human resources or executives can be visible. Employees will feel as though they are at higher risks of getting caught if they are surrounded by important people. In addition, these nearby workers will be able to identify any personnel that may be abusing this privilege.

Cleanliness is also vital for these rooms. Since the rooms can be used for medical conditions, there is a risk of biohazards. To overcome this, employees should be required to sign in and out of the rooms. The rooms should also contain antiseptic wipes and individuals should be expected to wipe down the surfaces upon leaving the room.

By taking these minor precautions, corporations can provide employees with the space they need to do their private tasks. Mothers can comfortable breast-feeding children and Muslim employees can have a place to participate in their private worship. Employees that require injections also have a private space they can use instead of doing their injections on the work floor or in the bathroom in front of others. It is amazing the impact a little private space can make.