More than 200 attendees gathered virtually at the NACS Human Resources Forum, March 9-11, to learn and connect from fellow HR professionals in the convenience retailing industry. Industry leaders presented engaging presentations on topics vital to the HR field, such as COVID-19 and the pressure it’s placed on essential workers, compensation and labor data from 2020 and how to build a more inclusive workplace.

Kicking off the event, Joanne Loce, president of Virginia-based Loce Consulting and event moderator, set the stage with an overview of the current landscape and led small group discussions, allowing attendees to align on expectations and build relationships with fellow HR professionals.

IT’S IN THE DATA

Following Loce, Jayme Gough, research manager for NACS, shared insights on the latest economic, consumer, convenience and adjacent channel trends that are influencing the convenience marketplace. The employment landscape changed dramatically in 2020, and COVID-19 impacted businesses in unprecedented ways, including human resources and labor, according to Gough.

Gough shared that new questions regarding the mitigation of COVID-19 were included in the newly-released NACS State of the Industry Compensation Report of 2020 Data, available now for purchase. According to the report, convenience retail companies spent an average of $45,006 on pandemic-related safety protocols and training, or about $482 per store. Additionally, companies that participated in the survey spent $259,583 on personal protective equipment, plexiglass shields, cleaning products and supplies, averaging $1,571 per store. If you projected the average company’s per-store reported spend across the industry of over 150,000 retail locations, the industry would have spent about $308,494,307 to mitigate the spread of COVID-19 in 2020.

Employee turnover continues to have a huge impact on the convenience industry. In 2020, turnover rates remained in the triple digits at 123% for store associates, according to the NACS Compensation Report. The average turnover rate was 91.8% for full-time hourly store associates and 153.9% for part-time hourly store associates. The turnover rate for managers dipped slightly to 20% in 2020 from 22% in 2019.

So how do c-stores prevent turnover? It’s important to understand why employees are not happy enough to stay in their positions. Gough pointed to a 2018 Work Institute study, which found that the No. 1 reason people quit their job is because they did not feel their position gave them enough career development.

“One thing is to look to your recruiting and hiring process. Try to make the right decision first,” advised Gough.

She also specified four segments that can be helpful in the hiring process.

1. Set clear expectations: The primary way to do this is through job descriptions.
2. Hire for the person: Hire for culture first and skills second. Data from the 2020 NACS Compensation Report shows that the full-time store associate turnover rate was 92% in 2020, and there was a 40% termination rate and a 59% resignation rate. Among the companies that implemented reference tests, personality tests, values tests and situational judgement tests, there was a 70% turnover rate, 21% termination rate and 17% resignation rate. “If you conduct these values tests, they are going to lead to longevity in your hiring,” said Gough.
3. Put your best foot forward: More time during the interview process showed higher rates of acceptance and lower turnover between positions.
4. Lead by example: Per the graphic below, Gough encouraged employers to provide an extraordinary employee experience, including the following:

You cannot overeducate employees during a pandemic.

Gough also stressed the importance of engaging and retaining employees, noting that disengaged employees cost U.S. organizations around $500 billion a year. “Disengaged employees do not provide anything for you,” she said, adding that convenience retailers, “have a great opportunity to engage employees when they’re least engaged—to reenergize them when they think maybe their feedback is not being listened to or maybe they’re not being trained enough. We need to find ways to intervene at these points where they are at their most disengaged.”

Additionally, 85% of HR leaders say employee experience is the most valuable HR capability. NACS data show that 28% of companies conduct employee engagement programs, up 24% from 2019. There is an average of 7.6 months in between programs. 

Finally, Gough outlined the baseline benefits that c-stores should consider offering to remain competitive.

The average hourly wage for a store associate was $11.89, which is up 40.5% in the past 10 years. Gough shared that convenience stores are competing inside and outside of the industry in terms of wages. “Our employees have lots of options to where they can go, so we need to stay competitive,” she said.

The main competitor for the c-store industry in 2020 was unemployment. Workers in half of U.S. states received higher unemployment pay than their normal salaries. So, to stay competitive, employers must offer baseline benefits. “If you’re not offering some of these baseline benefits, you’re not able to compete across the industry,” Gough said.

According to data from the NACS Compensation Report:

• 92% of companies offered medical coverage to store hourly employees
• 84% offered dental coverage
• 83% offered prescription coverage
• 84% offered retirement
• 77% offered life insurance
• 76% offered vision

“When it comes to baseline medical benefits, we’ve had the highest number of companies offering these benefits in the history of the Compensation Report,” said Gough.

COVID-19, LEGALLY SPEAKING

Top of mind for employers are the legal impacts of COVID-19. In his presentation, partner Travis W. Vance of Fisher & Phillips reviewed issues surrounding COVID-19 and the pressures it has placed on employers of essential workers. 

Vance said to consider two guideposts when making every decision relating to the pandemic:

1. How it will impact employee relations: “If I fire someone because of safety violations, how will that affect their fellow employees?”
2. How it will be viewed by the public: “You could do something that is perfectly legal, but it ends up on social media, and that could cost you a lot more in public perception and employee morale.”

According to Vance, there are four pillars that have worked in helping employers navigate the legal waters of the COVID-19 pandemic.

The first is to communicate. 

“Communication is crucial,” said Vance. Employees should know what their company is doing regarding COVID-19, the company’s vaccination program and COVID-19 housekeeping and sanitation procedures. 

If you keep your employees engaged and informed, “those are the employees that are more likely to come to work, more likely to be loyal, less likely to file a claim against you,” said Vance.

He emphasized how important it is for companies to have a written COVID-19 response plan. “You’ll help put employees at ease that you’re keeping them safe.” 

There should be continuous training for managers/supervisors but also for employees, and everyone should be educated on the company’s COVID-19 policies.

“You cannot overeducate employees during a pandemic,” he said, adding that the most effective employers go out of their way on a weekly and sometimes daily basis to remind their employees about what they’re doing to mitigate the spread of COVID-19.

The second pillar is to listen.

“Every time someone brings up a concern, you should listen to them, engage with them, take it seriously. If it’s something that you should fix to promote safety, you should be doing that,” said Vance.

He recommends performing a 360-degree analysis to get feedback on supervisors and managers from employees so you can make sure those in charge know the COVID-19 policies and procedures.

Vance says to listen to suggestions and utilize surveys to figure out if employees are happy and engaged.

The third pillar is servant leadership.

According to Vance, when a person is in a leadership position, instead of showing how great they’ve been doing, servant leadership is casting the light on the team around them.

“You engage with them, you listen and implement their ideas and when their ideas are successful, you give them all the praise,” he said.

The last pillar is empathy.

It’s crucial for employers to empathize with workers, says Vance. They should engage with employees and be transparent.

Vance continued the presentation by discussing the legal risks of COVID-19 and compliance with COVID-19 guidelines. He talked about OSHA/MSHA complaints and whistleblower claims and again emphasized how important it is to have a written COVID-19 response plan in place in order to combat these claims.

He mentioned workers’ compensation claims and how some states are saying that if an employee contracts COVID-19, it’s presumed to be contracted on the job. Vance said the employer and its insurer can fight back against that presumption by showing its COVID-19 response plan, training and safety protocols. “If you don’t have those in place, it’ll be much more difficult,” he said.

Not every benefit we offer is right for everyone.

Vance talked about how to restart a plan of action now that it’s been a year since COVID-19 became an imminent threat in the U.S. He advised that employers take a step back and look at what supplies, goods and materials are truly necessary to operate.

“Ask yourself: How is our cleaning? Are we training employees on the chemicals they’re using to clean? Do we have enough personal protective equipment? Is there a COVID-19 response team in place, who’s charged with making sure we’re compliant with all these rules, and who’s charged with making sure we’re complying with social distancing?” said Vance.

Vance touched on the hot button topic of vaccines. Employers have the right to mandate vaccines; however, mandating vaccines may result in disgruntled workers, according to Vance. You’ll also have many with religious and medical accommodation requests, so it’s impossible to mandate that everyone get a vaccine. “There’s no such thing as a mandatory vaccination policy. Most of our clients are going with a highly encouraged vaccination process,” said Vance.

Workplace Safety

Vance said his firm has seen companies ask their employees to sign waivers, but he doesn’t recommend using them. 

“OSHA won’t hold them up, and it looks bad from a public and employee perspective. They make it seem like your company is a dangerous workplace,” he said.

An alternative he recommends to waivers is a signed acknowledgment, which allows employees to affirm that they understand the company’s COVID-19 response plan, they’ve been trained on it and they’re going to follow it. “That is your best protection possible,” Vance said.

If an employee refuses return to work, don’t expect an OSHA complaint as OSHA’s threshold is very high. The employee needs to be placed in a near death or serious harm situation for OSHA to step in. However, companies don’t want employees to claim such a situation, so Vance advises that employers educate employees, listen to their concerns and engage them so they won’t be refusing to work in the first place.

When an Employee Tests Positive…

If an employee tests positive for COVID-19, Vance recommends this four-part process:

1. Isolate/quarantine confirmed employees
2. Address and isolate employees working near an infected co-worker: Vance says to conduct a 6-15-48 review. You should ask infected employees to identify all individuals who worked in close proximity (within six feet) for 15 minutes or more from the 48-hour period before the onset of symptoms until the infected employee is cleared to discontinue self-isolation.
3. Clean and disinfect your workplace: After a confirmed COVID-19 case, follow the CDC guidelines for cleaning and disinfecting the workplace. Your cleaning staff or a third-party sanitation contractor should clean and disinfect all areas (e.g., offices, bathrooms and common areas) used by the ill person, focusing especially on frequently touched surfaces.
4. Notify your employees: Following a confirmed COVID-19 case, and as recommended by the CDC, notify all employees who work in the location or area where the employee works of the situation.

Other Legal Updates

Vance said that the Trump Administration cut OSHA inspectors to the lowest level in its 49-year history, approximately 761 inspectors (there were about 1,000 a decade ago). President Biden promised to build up the number of federal OSHA inspectors, and according to Vance, it will take roughly 18 months to train new inspectors and begin conducting inspections. Employers can expect more OSHA inspectors knocking on their door after new inspectors are trained. 

Listen to our Spotify playlist! Scan for some HR-related tunes.

Vance also noted that a certain Obama-era reporting rule may receive new life, which would mandate certain employers to report detailed employee injury and illness information (including the information found on OSHA 300 Logs) to OSHA. Absent a successful legal challenge, OSHA would then make the information available to the public by posting it online. The goal is to create transparency and apply pressure for employers to comply with OSHA obligations.

Additionally, on May 12, 2016, OSHA published a final rule prohibiting employers from retaliating against employees for reporting work-related injuries or illnesses. The rule can apply to action taken under workplace safety incentive programs, injury and accident reporting programs, and post-incident drug testing policies. The rule states blanket automatic post-accident drug testing is improper because it has been shown to discourage employees from properly reporting injuries. Vance said the Trump Administration did not reverse the rule, but it has largely not been enforced.

Tomorrow’s Workplace

In closing, Vance emphasized two of the biggest HR impacts on the workplace. The first are COVID-19 vaccines. “Make sure you have a plan in place addressing vaccines clearly and communicate it to your employees,” he said. The second is a remote workplace. “It’s the new normal. What are your policies surrounding it from a wage hour and safety standpoint?” asked Vance.

CHOOSE TO BE DIFFERENT

When it comes to employee compensation and benefits, one size does not fit all, agreed members of the “Differentiating Yourself Through Total Rewards” panel, which featured human resources professionals Matt Spackman of Kum & Go and Ashley Ray of Maverik, who discussed ways that convenience retailers can reward employees and encourage retention. One important first step is surveying employees about their desires and needs to discover “we don’t always know what we don’t know,” Ray said.

Both Maverik and Kum & Go conduct employee surveys to find out what employees think about the organization, including compensation and benefits. Those surveys have revealed that “not every benefit we offer is right for everyone,” Ray said.

Kum & Go recently wanted to update its total rewards strategy to ensure the company was competitive in the market and that the strategy reflected the values of the organization, said Spackman. “Our survey used a trade-off analysis methodology, which showed two different benefits, and the associate had to choose between them.”

As expected, the surveys told both companies that “compensation, benefits and medical benefits are important,” Spackman said. “The one thing that was a surprise to me was that our associates were interested in educational opportunities to develop financial wellness.”

Kum & Go plans to combine physical, mental and financial health as part of an updated rewards program that will roll out in the future.

At Maverik, employees expressed interest in career development. “We are a huge proponent for education for our employees and their dependents, and we realized that education is much more important than we thought originally,” Ray said.

Maverick offers scholarships for employees’ children at seven different locations in different footprints, and the company’s “I Made the Grade” program rewards employee’s offspring with money via checks that are mailed to them when they earn excellent grades in school.

The best way to keep employees updated about rewards is to “communicate, communicate, communicate and often,” Ray said. “Tie it back to ‘what’s in [it] for me,’ and keep it simple.”

INCLUSIVITY IS VITAL

Following Black Lives Matter demonstrations last summer, inclusion and diversity “have been a critical top-of-mind topic for corporations and organizations,” said Stephanie Piimauna, senior vice president and chief diversity and inclusion officer at Seminole Hard Rock Support Services, in her session “Building a More Inclusive Workplace.”

“'Diversity’ and ‘inclusion’ [are] actually one word. It means possibilities,” she said.

Today, the public is asking businesses to “show us what that means,” she said. “What are you doing to minimize bias? What are your hiring practices? What do your directors look like? And corporations are revisiting their strategies when it comes to diversity and inclusion.”

There are five reasons inclusion is important, she said.

1. It’s the Right Thing to Do: That attitude should inspire businesses to identify what gets in the way of an inclusive environment and determine what shapes the culture of the organization.
2. Changing Demographics: The world is changing both demographically and generationally. Today, many people identify as two or more races. Gen Z will soon be coming into the workplace and will have different needs and attitudes than past generations.
3. Providing a Safe and Productive Environment: When people are distracted by their environment, they can’t produce quality work. Bullying doesn’t promote a safe, productive environment that builds trust and produces growth and productivity.
4. Risk Management: Inclusivity helps maintain the company’s image and reputation.
5. Strategic Advantage: Inclusivity allows companies to position their organization as an employer of choice. It improves organizational performance and reduces lawsuits and complaints.

Going forward, Piimauna sees 10 trends that human resources professionals and company leadership should consider when strategically looking at diversity and inclusion in the organization. They are:

1. Fatigue, Being Overwhelmed and Cynicism: Employees are suffering physical, mental and spiritual exhaustion because there are so many things to consider in daily life. There could also be “diversity fatigue” in the organization because the needle is not moving fast enough, or leaders aren’t making decisions.
2. Data, Data, Data: Companies like Walmart and Microsoft are now publicly reporting their demographic data. Demographic data, self-identification data and focus groups tell the narrative and can impact an organization’s ability to be competitive in the talent wars.
3. Executives: When it comes to inclusiveness, executives may be oblivious, scared, frustrated or committed.
4. Distributed Teams Across the Globe: Many of today’s organizations are global, and leaders must bring them all together by moving forward with the right strategy for diversity and inclusion.
5. Integrated and Skills-Based Inclusive Leadership Training Programs: Many companies are openly discussing race. Some—such as Walmart—have even adopted virtual reality to let people experience what it is like to be another race or sex.
6. Teams and Roles: Several organizations have created teams or developed roles dedicated to promoting diversity.
7. Accountability Through Performance Management: Organizations can rate employees—usually management and above—on how they help promote diversity and inclusion.
8. Broadening the Definition of Diversity: Sometimes the organization may extend its focus, which takes away from a marginalized group. For example, creating programs for introverted employees should not take attention from women and minorities.
9. Reinvigoration of Employee Resource Groups: Don’t let these groups evolve into social gatherings. They should be business resource groups. Leverage them as the voice of people they serve.
10. Move Toward Social Justice: This includes making donations for diversity causes, as well as creating a safe space where employees feel comfortable having conversations about sensitive topics, such as race and religion.

• Increased productivity
• Increased profits
• Improved employee engagement
• Longer tenure
• A wider range of skills