UK Customer service and Human Resources

Introduction

Management regards customer service as an essential element in the success of its business, and the division’s scale enables it to invest in industry-leading training. The Signet Jewellery Academy, a multi-year program and framework for training and developing standards of capability, is operated for all store staff. It utilizes a training system developed by the division called the “Amazing Customer Experience” (“ACE”). An ACE Index customer feedback survey gives a reflection of customers’ experiences and forms part of the monthly performance statistics that are monitored on a store by store basis. In fiscal 2010, the UK division implemented an improved staff coaching methodology.

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The UK divisional head office staff numbers were reduced in early fiscal 2010 as part of a cost reduction program. Store staff hours continued to be flexed, where possible, to reflect sales volumes.

Training

ACE is a flexible program consisting of six elements that better enable store staff to meet the needs of customers. In addition to the normal training program, one day ACE workshops were again used in fiscal 2010. All store personnel have daily performance targets. They are given training and weekly feedback on their performance from store and field management to help them achieve these targets. Training in management skills is provided to all tiers of store operations management to support the store associate training program and to build general management skills.

The division’s continuing program to improve the training of its staff is reflected in the number of employees that have now passed the Jewelry Education & Training (“JET”) Level 1 qualification accredited by the National Association of Goldsmiths (“NAG”). 93% of store management have achieved this qualification. Signet employs 32% of all JET Level 1 qualified people that work in the UK retail jewelry industry.

In addition the division has established award winning workshops run in partnership with the IGI to increase product knowledge in the diamond category, and a partnership has been developed with the BHI to deliver workshops that increase service levels in store and help drive the sales performance of the watch category. These courses form part of the training program for Ernest Jones staff wishing to achieve a higher level of expertise.

Recruitment and retention

Recruitment procedures, including online facilities, continue to improve the suitability of new store personnel, helping to ensure that they meet key basic requirements and are motivated to work within a jewelry store environment. Field and human resources management are responsible for the recruitment, review, training and development of sales staff, thereby ensuring consistency in operating standards and procedures throughout the business. All new store staff receive a structured induction program that covers store operations, product knowledge and customer service. A financial reward is received upon completion.

A commission-based remuneration program first implemented in fiscal 2006 was further refined during fiscal 2009. The level of commission paid is dependent on a combination of store and individual performance.

Promotion

The division’s preferred policy is to promote store management from within the business and aim for 80% of appointments to be internal applicants. Each chain always has a number of sales staff who are qualified to advance to store management level, thus assuring the availability of newly trained managers familiar with the division’s operating standards and procedures.

Store support

In order to increase staff selling time and to improve efficiency, operating procedures are routinely reviewed to identify opportunities to enhance customer service and reduce in-store administrative tasks. The Signet intranet was further upgraded in fiscal 2010, and provides a computer-based platform for improved communication between stores and head office, with sales floor and back office administrative functions being simplified and standardized through this medium.

Head office

Management believes that successful recruitment, training and retention of divisional head office staff is important. Accordingly, structured recruitment, training and performance management systems are in place. Internal career advancement is supported by succession planning. Teamwork and service to the stores are encouraged through a performance bonus plan for head office staff, which is based on the division’s results. A program to drive continuous improvement, cross functional alignment and customer-focused decision making was continued through fiscal 2010. The program includes back-to-the-shop-floor exercises, development workshops and e-learning.