Sears Canada loses CEO - How can companies keep employees happy?

Originally reported by Business Vancouver, Sears Canada has recently lost its president and CEO. For those of you who have been keeping count, that’s four CEOs in four years. Simply put, what is the company doing wrong and how can other businesses—both Canadian and American—help keep employees happy so that they stay?

RELATED TOPIC: How Sears Canada (and other like-companies) can improve current slumps

As  stated above, Sears Canada can’t keep a CEO—not for more than a year, anyway. What’s the real  problem behind this issue?

This time, it’s Ronald Boire who has decided to step down from the company in order to “pursue an opportunity in the United States.” And while Sears is now on the hunt to find someone to replace Boire, the business needs to take a look at some important factors if they want to hire someone that is going to stick around.

For example, Sears Canada—and businesses in general—need to be more mindful of who it hires. At the time, Boire most likely seemed like the perfect candidate for the job at hand. He actually originally stepped into the position in October 2014 as interim CEO just one month after his predecessor resigned.

RELATED TOPIC: Four ways to motivate employees and increase productivity

Perhaps that’s one of the problems: instead of promoting the interim CEO to the full time position, the company should have then been on the lookout to find a serious, qualified candidate. Again, Boire may have been suitable for the job, but there are high chances that someone out there would have been an even better for it.

It seems that Sears Canada was looking for a “quick fix” verses taking the future of the company into consideration—big mistake. If a business wants to be successful, then it needs to be prepared and plan for the future.

In the meantime, Brandon Stranzl has been named executive chairman of the company. Stranzl, a company board chairman, may be the best candidate for the job at the moment, but is Sears Canada headed for the same murky waters that its been sinking in for the past four years?

Regarding the matter, Stranzl has made the following statement: “I am enthusiastic about the opportunity to play an expanded role within our organization, and I am committed to working closely with all our Sears associates and business partners to make progress on our goals to delight our customers and return Sears Canada to profitability.”

RELATED TOPIC: How to find good talent and where to find it

It would be wise for Sears Canada to take this time and really search for a CEO who not only is qualified for the position, but one who is also ready to help the company grow and become part of the team. It goes without saying that losing four top executives in four years is bad—for several reasons. The company will most likely have trouble finding a serious CEO to take over, as stability has proven to be an issue.

Therefore, similar businesses should take note: when attempting to correct an issue, quick fixes should be avoided. If you’re going to right a wrong, then do it full force.  

RECENT TOPIC: What other retailers can learn from Canadian Tire’s recent expansion

[SOURCE: Business Vancouver]

To learn about business taking place in the United States, make sure you visit our sister brand Business Review USA. 

Let's Connect!

Read the latest edition of Business Review Canada!