Now in its 28th year, the NACS HR Forum brings together HR leaders to collaborate and work to resolve some of the industry’s most pressing labor issues. And this year in early March, nearly 90 HR professionals gathered in Dallas to discuss the convenience industry’s hiring, retention and leadership challenges. This year’s pressing issue, which rapidly gained momentum while attendees settled in, was coronavirus.
Joanne Loce, president of Virginia-based Loce Consulting and event moderator, guided attendees through the three days of education and collaboration, which kicked off with a legislative update—and a timely focus on how employers should navigate coronavirus in the workplace.
What you do when chaos hits can make a huge impact on your employees and your company.
“The most important thing to do is educate your employees about how the virus can be contracted,” said Arthur Lambert, a partner at Fisher Phillips LLP. He added that HR personnel should manage employees’ emotions regarding the threat of the virus. He encouraged attendees to train supervisors on overreaction impacts and emphasized the importance of adhering to antidiscrimination policies.
In light of the virus, encountering a coworker who is coughing or sneezing can make employees uneasy, and as an HR professional, you cannot legally divulge if an employee has the virus or not, Lambert said. He shared advice on what to do if employees test positive for COVID-19, if employees suspect they have the virus but it isn’t confirmed and if employees come into contact with a presumptive COVID-19 case.
Following Lambert’s presentation, John Skousen, also a partner at Fisher Phillips LLP, gave attendees a few other updates in the legal and legislative space, including news from the National Labor Relations Board. He then gave updates from the Equal Employment Opportunity Commission, which included retaliation and sexual harassment cases and discriminatory cases based on hairstyles, LGBTQ, gender identity and English-only policies.
Skousen addressed marijuana and CBD use in the workplace, and how marijuana, including medical marijuana, is still federally illegal and classified as a schedule one drug. He emphasized the safety implications of a person under the influence in the workplace, and how there are legal carveouts in marijuana-legal states to ensure workplace safety is maintained. Finally, Skousen discussed avoiding common wage and hour pitfalls and how to stay compliant with the Fair Labor Standards Act.
Thriving in Chaos
Unexpected challenges and changes are a new reality, so how can you not only cope but thrive among the chaos—even when things are completely out of your control?
“Chaos happens when reality is different than your expectations,” said Corinne Hancock, a chaos coach.
How we react to chaos can be the difference between success and failure and determines whether our team comes together or completely falls apart, said Hancock. She then presented a model for how people should react in the midst of chaos.
- Prepare: Are you chaos ready?
- Do: What do you do when chaos hits?
- Be: Who are you being?
- Adjust: How do you use this chaos to your advantage?
Hancock said that companies can prepare for chaos by clarifying their mission and making sure employees know the mission, as well as their role within the mission and their leaders’ roles. “Ask people what their role is. ‘What do you think you’re responsible for?’ And in turn, ask, ‘what do you think my role is and what I’m responsible for?’” said Hancock.
What you do when chaos hits can make a huge impact on your employees and your company. Hancock advises to remember your mission, assess and evaluate the situation and get creative when obvious solutions are no longer on the table.
Hancock then posed the question, “Who are you being in the midst of chaos?”
“Who are you going to be to change the culture in your company,” asked Hancock “Because how you’re being is how everyone else is going to show up.” If you are panicking, blaming or complaining, so will your employees, she said.
Hancock said you must take on the responsibility for your team, their reactions and ultimately, finding the solution to thrive in chaos. “Are they [your team] focusing on the problem or the solution?” asked Hancock. “Are you adding to the chaos, or are you solving the problem?”
Perhaps the most important piece of the chaos model is how someone will adjust to the chaos and use it to their advantage. “Chaos makes you stronger,” said Hancock. “Looking back, you are the proudest of the results after the chaos.”
People First
Jayme Gough, NACS analyst, presented attendees with in-depth benchmarking data and insights from the newly released NACS Compensation Report.
“The number of global organizations that have implemented people analytics in the past three years has grown from 15% to 68%,” said Gough. People are taking their investment in employees seriously, as unemployment (pre-pandemic) hits a 50-year low, and wages skyrocket, she added.
Benefits will attract all people, but we want exceptional people. So what benefits are going to attract the right people?
Wages made up 40% of direct store operating expenses in 2019—a 5% increase over 2018. Gough says the reason for the increase is that employers are choosing to invest in good employees who can help their companies generate profit.
Gough discussed health-care costs and showed that costs have remained relatively stable during the past 10 years. However, discretionary wellness benefits, such as flexible spending accounts and tuition reimbursement, have decreased, and Gough said that companies may be minimizing these expenses to keep health-care costs consistent year over year.
Recruitment is a hot topic in the HR industry, as the competition for employees remains fierce. Sixty-three percent of hourly workers said that higher wages were most important to them, followed closely by a predictable work schedule at 53%.
According to Gough, it’s now commonplace for an employer to offer competitive pay, so she encouraged attendees to think of other ways to attract and retain employees through benefits and a good work culture. “Benefits will attract all people, but we want exceptional people. So what benefits are going to attract the right people?” she asked.
Turnover is a difficult aspect of the industry to manage, as turnover rates for c-store retailers remain high. The turnover rate for full-time store associates was 81.3% in 2019, while the rate for part-time store associates was 160.2%. The total average store associate turnover rate was 121% last year, slightly up from 2018’s 118%. The manager turnover rate in 2019 remained the same as 2018 at 22.0%.
This year, the NACS Compensation Report began tracking the employee “ghost” rate, which refers to employers that interview, hire and receive an acceptance from candidates, but the candidates do not show up for work on their first day and never inform the employer. The ghost rate for full-time store associates in 2019 was 15%, and the rate for part-time store associates was 18%.
Better Together
The HR Forum also explored other themes designed to help HR attendees build better organizations. Mary Beth DeNooyer, CHRO of Keurig Dr Pepper, explored how to differentiate your company through employee engagement. And Chris McKinney, director of human resources at Jackson, Mississippi-based Sprint Mart, led attendees through an interactive session on using scheduling as a competitive advantage inspired by his time working at Walt Disney World.
What if there was a better way to “do” change, facilitators Dave Croci and Rashel Rogers asked and provided an action plan for attendees to conquer change fatigue. Attendees discovered how change fatigue is playing out in their workplaces and collectively developed strategies to prevent it. The immersive experience allowed participants to network and discuss challenges with their peers from other organizations.
Joni Dolce, assistant professor at Rutgers, The State University of New Jersey, shared ways to create mental-health-friendly work environments conducive to employee productivity. Dolce shared that stress, depression, anxiety and other mental health challenges may contribute to an employee's increased absenteeism, lateness and overall drive to do well and succeed in a company. She shared strategies that HR attendees can use to retain these workers and to create supportive and accessible environments that allow for increased productivity.
Throughout the event, networking breaks and roundtable discussions brought everyone together during a time of confusion and chaos as attendees reacted to COVID-19 emails and phone calls from their home offices. Through it all, the community of HR professionals gathered in Dallas did what they do best: Share ideas and support to help each other help their organizations.
Benchmark Your Talent
The NACS State of the Industry Compensation Report of 2019 Data allows retailers to benchmark their business with the latest industry data on employee compensation, benefits and turnover for every position, seniority level and store size. This year’s report was compiled with metrics from more than 120 retail companies, representing more than 20,000 stores.
Inside your digital copy, you’ll find annual base salaries and the dollar value of all additional compensation for 15 executive-level positions, 11 operations positions and 10 store-level positions, sorted by region and firm size. Also included is an Independent Operator section, providing a breakdown of salary, health care and benefits for smaller companies. Purchase your digital copy today at www.convenience.org/compreport.