By Fawwaz Baktee
As much as possible, frontline employees should be empowered with autonomy and transparent information to run the business well – this is the business philosophy Yankee Candle Managing Director Logan Wong adheres to. The retail chain specialises in a wide array of scented candles and related accessories.
“Employees are like the business owners as well. I believe the success of this company depends on them. And to do this, they need relevant information to make on-the-ground decisions and boost sales,” he explained.
Unlike many other employers, Mr Wong provides his front line employees with information such as rental and labour costs.
“Rental and labour are probably the two biggest expenses of retail stores. If employees are kept in the dark about these things, there is no way they can appreciate what it takes to make a business succeed.
“We measure the total labour cost on a monthly basis and then we provide it to the managers of the store. Not only do we give them information on the store they are working at, but also information of other outlets,” said Mr Wong.
By doing so, Mr Wong said he creates a healthy competition among the 12 Yankee Candle outlets across Singapore.
Challenges Faced
Although ideal, this philosophy was not always easy to implement. After the company opened its fifth store in Singapore, it became clear to Mr Wong that work processes had to be improved in order for the stores to be managed more efficiently and productively.
“I was relying a lot on my own observations to manage the stores. I came to realise that more structures had to be put in place so I have data to support these observations. In many instances, what we feel is true may not be so when we look at the facts. These facts and figures are crucial to me to make informed decisions and to the employees whom I’ve empowered,” he said.
Without an integrated system, the company faced other challenges such as not being able to track stocks and sales in real time.
Improving Processes
In May 2014, Yankee Candle tapped on the Inclusive Growth Programme (IGP) provided by NTUC’s e2i (Employment and Employability Institute) to address the issues.
The company acquired an Enterprise Resource Planning (ERP) system that integrates a point of sale system, the company’s inventory, human resource information, customer relationship management and accounts.
“The system really helps us with managing the store better,” said Yankee Candle retail assistant Siti Musyawwarah, 23, who works at the JEM outlet.
“We often benchmark our sales to the outlet in Vivo City. With the system, I’m able to compare the two stores almost immediately to see how well mine is doing. And from the information, I will think about what I can do to help boost sales,” she added.
Ms Siti is one of the dozens of Yankee Candle employees who are earning a higher salary than the retail industry average through sharing of gains.
Double-Edged Sword?
Mr Wong conceded that giving his employees access to such information is a risk, but it is one he is willing to take.
“There will always be pros and cons to a process. I know that someone who quits the company can take the business plans to a competitor. Yes, we have those concerns but the truth is you can’t give employees autonomy without empowering them with information and training. To me, the benefits definitely outweigh the drawbacks,” he said.
Source: NTUC This Week
