Penny On The Move is upskilling its workforce with the launch of an apprenticeship scheme aimed at holding on to existing employees for longer.
The Top 50 Indie says that by providing “accessible career paths” it hopes to continue to reduce staff turnover from around 35% of its workers leaving every 12 months, to closer to 25% within the next two years.
“That is way below the industry average, which will be over 50%, and much lower than we had 18 months ago when we were, I am embarrassed to say, at more than 60%,” says Penny’s head of people Tim Coid.
Offering staff the opportunity to take part in an apprenticeship scheme is the next step in a long-term strategy to recruit and retain quality staff. It follows earlier initiatives which Coid credits for the improvement in the staff turnover figures.
This included introducing an improved induction process, in which managers have to follow a 12-week programme with regular check-ins supporting new recruits.
Also, under the direction of the company’s chief commercial officer Tony Jackson who joined the business in September 2024, the store manager’s role has been simplified. Tasks which could be automated or done centrally have been taken away.
Jackson also championed store managers being given one simple KPI of “doing the basics brilliantly”, rather than 19 before, and moving their bonus from being given six-monthly or annually to monthly, giving them an instant reward for their success.
“Although we had looked at the turnover rate, and exit interviews, it was really difficult to pin down why our staff turnover was so high,” says Coid. “It was only when Tony came in with an external pair of eyes that we started to ask questions about why we were doing and not doing certain things. He gave us a fresh lens on this.”
The business, which has 1,200 people on its payroll, has also introduced the subtle change of internally calling managers ‘leaders’. “We are looking to develop leaders, and if you call people a leader they will more likely behave like one,” enthuses Coid.
With Jackson’s input, Penny’s staff turnover has not only halved, but in the first nine months of changes to their roles and bonus schemes all of the company’s store managers have stayed in their jobs to date. “It has been a real success, and the apprenticeships are the next step in our retention and attraction strategy, giving staff the right training and opportunity to grow,” says Coid.
So far four of 10 applicants have started on the apprenticeship programme, using 18-24 month packages from training company Lifetime Training. The qualifications start from entry level 2, through to level 5, preparing staff for senior management roles.
Marcus Bradley, store manager of Aysgarth Service Station, is one of the four. He says: “I chose the Level 4 Retail Manager apprenticeship to deepen my knowledge in my role and to better support my team, site, and the wider business. I’m really looking forward to getting started.”
There are a choice of subject areas covering operational, retail and coaching. This is likely to be extended to include AI, payroll and back office functions, says Coid.
“My aspiration is that everyone has the chance to do it, and I would hope to have 10 running continuously. In a few years I’d like to see high performance store managers that have come through the apprenticeship scheme, ready to progress to an area manager role.”
Because Penny has an annual payroll in excess of £3m, it is required to pay into The Apprenticeship Levy, which it then draws on to pay for the apprenticeship programmes. “It’s a way of reinvesting back into the team rather than that money going back into central government,” says Coid.
He urges other forecourt operators to do likewise, with smaller businesses not required to pay into the levy also having access to a significant amount of funding – at least 95% – for apprenticeship training from the central levy pot.
“The other part of this is that we are building successions for when we have someone suddenly leave, or we need cover for sickness, or maternity or adoption leave. It will mean that we will have people continually ready to step up,” says Coid.
He adds: “Up until quite recently it was hard to attract into forecourt retail as it is not seen as a glamorous world. We want to show that there are opportunities to grow and develop and become whatever you want in the business.
“This will encourage people to build a career with us rather than seeking other employment.”
