According to St. James Press (2004),“Sear, RoeBuck and Co is a leading retailer of apparel, home, and automotive products and services, with annual revenue of more than $40 billion” (para. 1). In the area of retention and employee satisfaction Sears, Roebuck turned a challenging situations into a celebrated win for the organization. Sears amazingly linked employee satisfaction to employee retention, which led to customer satisfaction and higher performance (Streetdirectory, 2011).
Sears identified a major component to turn their situation around which consisted of creating a better workplace. Sears main approach started with employee satisfaction by measuring employee’s attitude through an employee survey. The results of the employee survey were later compared to the customer results survey, then compare to profit trends. Sears found that the data revealed the power that employees have on an organization’s growth (Streetdirectory, 2011). After learning of these findings, Sears’s turnaround began by focusing on employee’s satisfaction in different areas of need. Sears was reluctant to take the usually approach through lay-off, outsourcing, reduction of benefits or streamlining operations. Sears started with a survey, that later revealed the true underlining issue, which was employee satisfaction. Sear willingness to overcome employee satisfaction through restructuring employee hourly status, pay rates, and total rewards packages, led to free advertisement and a positive marketing tool for the organization. Employee satisfaction was the driving force behind customer satisfaction and increased revenue (Streetdirectory, 2011).
In comparison to Sears, Riordan is face with similar challenges and their desired growth may begin also with employee satisfaction, which can lead to customer satisfaction and higher profits. The results of Sears labor is employee retention, satisfied customers, and 250 million revenue increase a year. These results has sent a power message and cash flow that Riordan can is definitely benefit from.