How VERC Achieved Zero Manager Turnover
By Alaina Lancaster on Jan. 19, 2018DUXBURY, Mass. -- Last year, not a single store manager left VERC Enterprises Inc. That’s a heck of a feat when the rest of the convenience-store industry endured a 17% increase in management turnover from 2015 to 2016, according to the most recent NACS Compensation Report released last April.
It’s all about executive buy-in, Barry Ahern, VERC's vice president of operations and human resources, told CSP Daily News. “The key is if the ownership and senior management are committed to [being the] best place to work, you’re going to be a great place to work, and you’re going to have fun,” Ahern said.
Check out three ways the Duxbury, Mass.-based retailer squashes manager and hourly turnover ...
1. Bonuses
Each year, the c-store chain surveys employees from all 28 of its locations and every division. After the executive team analyzes the results, Ahern and the chain’s CEO, Leo Vercollone, meet with managers, associates, corporate workers and car-wash staff separately. The survey results have fueled decisions such as increasing the percentage the company paid toward health insurance and offering full-time employees two extra paid days a year, in lieu of paid time off.
But when it came down to it, the surveys have shown that workers really want more money, Ahern said. One of the ways the chain pads managers’ paychecks is with a monthly bonus based on turnover. If store managers don’t lose a single employee each month, they earn an extra $100. The brand closely monitors turnover, with a weekly email that shows rolling turnover trends for each store. “If there’s turnover, we ask why they are only with us for two months," he said.
Managers also qualify for a bonus if their stores hit a handful of goals around payroll, store sales and mystery-shop scores. The retailer also incentivizes managers to grow the volume of tobacco products sold with a monthly bonus. And after a record-breaking month last August, the CEO surprised team members with unscheduled bonuses.
2. Cultivating fun
Each month, VERC schedules events to add some excitement to staff member’s daily grind. The chain has created a new position dedicated to the pursuit: manager of training development and fun. To celebrate “National Fun at Work Day,” team members will be encouraged to dress down in the appropriate outfit of their choice. Each store can also decide to partake in a free individual breakfast, lunch or dinner or a team meal. Corporate team members will also be celebrating the holiday with lunch, casual clothes and a movie.
VERC team members can also take advantage of sports dress-up days when the local teams are in the playoffs and every weekend that the New England Patriots play. Almost half of all associates participate in the chain’s ugly sweater contests during the holidays with the chance to earn 15 cash prizes ranging from $10 to $75. These little things "make them enjoy their day better, makes them more comfortable," Ahern said.
3. Bringing in talent
VERC’s biggest labor challenge is finding good people, same as everyone else, Ahern said. “However, if we can get them in the door, we can keep them for the long term,” he said.
Hourly associate turnover is just 35%, compared to the industry’s 133%, according to NACS Compensation Report. The company finds most of its candidates through employee referrals. Workers who referred new team members earn $50 at the date of hire, and $50 after 60 days for associates. For managers, staff can rake in two payments of $250.
Another recruiting tool for VERC is its preference for internal promotions. Out of 28 stores, 26 of the store managers started as assistant managers or full-time associates, Ahern said.