The ever-increasing scrutiny of working conditions continues to affect the retail industry. She has almost completely recovered from the pandemic. Yet with its reliance on hourly workers, its youthful workforce, its vulnerability to economic trends, its difficulties with hybrid work, and the revolution in customer experience brought about by online sales, retail presents challenges and opportunities that are similar in several industries.
New approaches to problems involving the workforce
Addressing the workforce challenges of attracting and retaining retail workers must include approaches that encompass the employee life cycle tailored to the differences in retail operations compared to other industries. Many jobs in retail are seasonal, and physical and distribution center locations cannot accommodate hybrid work.
Retail must also appeal specifically to younger workers who make up more than 50 percent of the industry. As found in Grant Thornton's workforce research, higher pay is essentially key to attracting and retaining talent, and this also applies to younger generations in the labor market, but the idea of earning higher amounts by working more hours is not so attractive. Retailers and companies need to determine what trade-offs they can make based on employee preferences. Now is the time to listen to employees, align bids, and solidify your cost structure for greater ROI.
Training employees to meet demand
One unmistakable effect of COVID-19 has been the rise of online sales and the channeling of information. These trends were happening before the pandemic, but it accelerated them. As a result, the way retail jobs are distributed is changing, and so is the need for a new skill set for retail workers. Handling a client in person where the personal connection and reading body language is more pronounced, requires a different process and skill set than handling inquiries and complaints online. All should be equipped with the skills and techniques necessary to ensure a successful user experience and standards to meet expectations.
One trend that has increased with the use of technology in retail is the use of in-store surveys. This may be off-putting to some workers who fear the significant weight of this unique source of feedback. This diversification of capabilities also includes providing more opportunities for leadership positions. Showing the way to future revenues and opportunities through a targeted effort to develop and train their workers is the future of the retail industry.
The rise of retail in an uncertain environment
With interest rates rising to prevent a spike in inflation, the recent post-pandemic surge in retail sales has come to an end. In this time of adjustment, some retailers have already announced layoffs, and there could be more. Pressures to recruit new employees will be countered by stagnant growth. Retail is a dynamic industry in this economic environment, where some companies have merged, some have gone bankrupt, and some have thrived and grown and are stronger now than they were a few years ago. There has been sustained growth in retail sales in the years following the 2008-2010 downturn. and there are signs that the retail industry as a whole could enjoy another such boom.
Even inflation won't necessarily hurt in the short term, since it allows retailers to raise prices. Increasing margins means the retailer can reinvest in the company where it sees fit, such as workforce initiatives. Constant supply disruptions, combined with economic conditions, paint an uncertain future – but one that retailers can manage successfully. By adjusting wages, benefits and working conditions to attract workers with the right skills, retail managers will go a long way in putting their business on a path to growth and stability.
Data source: Grant Thornton Global