Publicly Traded National Telecom Case Study

Leadership Training Program for Line Managers Across the U.S.

The Challenge

A national telecom with store front locations across the U.S. was experiencing employee churn (turnover) at a rate that surpassed national averages by a significant number. The previous year they implemented a new pre-hire assessment system which showed some immediate improvement, but they knew it would not be enough. A side-effect of the turnover was that lack of bench strength to promote into store manager and assistant store manager roles. Recognizing both of these challenges and very specific feedback on their employee survey with regard to a lack of coaching, the company determined it should bring in outside help.

The company evaluated both an online computer based training program and a live training program to help better equip their store management teams. Given that their needs were more skill based than knowledge based, the live training approach was selected.

The Process

Working with the client’s leadership group, we created a highly interactive, customized off-the-shelf training program that incorporated the unique culture and challenges faced by the store management teams.

The Solution

A team of experienced consultants were then sent to over 14 locations across the nation. The teams and the training provided hands-on learning opportunities for the managers, assistants and other top non-exempt store personnel. The training involved the use of video for feedback purposes and worked with a ratio of 5/1 participants / per trainer. The training received high marks and extremely positive feedback from the outset and was readily embraced by the field retail teams. In addition to the training, each employee was invited to attend one or more group coaching calls as a follow-up to the training. Self-reports from the employees showed marked improvements in overall communication within the retail stores as well as a noted decrease in the higher non-exempt, non-managerial roles.

The Results

The company was already monitoring both turnover and internal promotions and had solid baselines to work with prior to the start of the training. Six month results showed a marked decrease in employee churn, roughly 65% decrease. The tracking also showed a spike in internal promotions that prior to the training likely would have been external hires. 12 months post training the turnover decrease was greater than anticipated. Turnover that was once well over 100%, had dropped to well below industry (retail) averages and the number internal promotions was now equally balanced with external hires. Just as important, the company saw an overall employee satisfaction score increase over the following 12 months of almost 70%.

The project involved 14 locations stretching from Miami to Boston, to Dallas and then from Sacramento to San Diego. Over 400 managers, assistant managers and senior retail associates were trained. All within a 4.5 month time frame. The soft and hard dollar savings from both the turnover reduction and internal promotion increase was projected by the company to be in excess of $1.8 million.

PROJECT DESCRIPTION

We trained over 400 first line managers in coaching and providing feedback to team members. Year over year results showed a reduction in turnover of almost 65% and a direct savings of over $1.8 million in hiring and training costs.