3 ways to tackle retail compliance issues

[fa icon="calendar'] May 3, 2018 / by Eric Sink

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An excerpt from Bad Stores and How to Fix Them

 

Lack of compliance with currency management procedures is a natural consequence of the industry’s high turnover — if staff is always changing, procedures get sloppy. But even without an ever-changing team, procedures and the ability to govern how and when they’re executed can suffer without the proper tools.

 

Poor procedural compliance can be an issue in any store in your chain, but it’s one of the hallmarks of a bad store. These stores are late and incomplete in their reporting, too slow or too fast in completing back office tasks, and often have created their own shortcuts to your currency management procedures that hurt productivity and profitability.


To combat these issues, try one of these tactics:


  • See for yourself
    Visibility over procedures is key to ensuring compliance. One way to get visibility is to actually visit your stores, of course. Store visits are valuable to your operations because not only can you see firsthand what a typical day looks like, but you can see for yourself how your policies work — or how they don’t. Keep in mind that while you likely have a program of scheduled and surprise audits, even when a store visit is a surprise, employees tend to be on their best behavior and follow procedures they might not when no one is observing them.

  • Watch from afar
    While store visits are a necessary part of your business, they’re also costly in terms of travel and your time. Technologies that allow you to track compliance across your business can show you how your back-office activity plays out day to day when you aren’t there to observe. Seek out solutions that provide automated reports and trigger alerts when procedural exceptions occur.

  • Show employees the bigger picture
    When addressing compliance issues at bad stores, make sure you communicate why your procedures and processes are so important. Often, when employees see the big picture and how actions in one store add up across the business, they will see the role they can play in the company’s success, and studies show that this realization increases employee productivity. Cross-functional store meetings hold similar value — employees can get a clearer view of how their actions affect other departments and team members, encouraging them to improve compliance to help their co-workers.

Whether you observe how employees work in person or you employ a technology solution, don’t focus solely on your bad stores. Keeping a close eye on your best stores can help you identify standout employees and give you ideas on how to coach your bad stores to success. Clear, consistent visibility of all your stores will help you stay on the right track.

Eric Sink
Eric Sink

Eric has worked in banking and finance and now spends his time helping Balance Innovations customers find and implement the right solutions for their challenges.