Shrink Reduction: Engaging the Employee to Reduce Loss
Issue: A large national grocer sought to reinvigorate their employee awareness program so that associates would know the causes of shrink in their departments and what they could do about it.
Strategy & Insight: In order to gauge the current perceptions of shrink, garner an understanding of the culture, and create a baseline in order to anticipate the learning curve, Creative Options conducted surveys, held focus groups in stores around the country and facilitated planning sessions with the client. The audience was extremely diverse in language, culture and skill sets with locations across the United States and associates ranging from Generation X and Y to their Baby Boomer parents.
The tone and messaging of the broader awareness program was tailored to the younger associates who frequently lacked knowledge in the area of shrink because of high turnover rates.
Execution: Every store in the company conducted a launch celebration to introduce the program.
The program components, addressing specific shrink issues and actions by department, soon followed. On a monthly basis, the associates received targeted messages applicable to their role through a number of carefully crafted components including: posters, newsletters, employee handouts, and contests. Associates and management were also rewarded and recognized for their achievements in shrink reduction.
Over three years shrink was reduced from 2.8% to 2.36%, and the awareness program was the primary communication vehicle to the stores.
A custom designed Web Portal is at the core of the program. The client can log in at the corporate, division or store level (depending on authorization level) to access additional information and tools which help them manage and measure their successes. Stores may print “board meeting package” materials for each period, including
department specific shrink information, meeting agendas and talking points.
A “great ideas” campaign also provides an incentive for individual associates to submit ground-level change initiatives which will improve operations and reduce loss. In the end, the website fosters open communication and accountability, from the stores up through each division and into corporate.
Results: Upon launching the reinvigorated campaign, shrink reduction over the initial twelve months equated to $160 million. Over three years shrink was reduced from 2.8% to 2.36%, and the awareness program was the primary communication vehicle to the stores.
Products used in this case study:
Training | Awareness | Metrics
Compliance | Incentives
Additional Case Studies:
Data Protection | Risk & Compliance
Health & Safety | Energy Management
