Right staff and outlook crucial in retail sector
THE retail industry is one of the fastest growing sectors in today’s business world, employing millions of people across the globe in a fast-moving environment.
Retail employees deal directly with customers and because of that the role of Human Resource Management (HRM) is crucial.
It is extremely important to keep retail staff motivated and properly trained as collectively they are serving millions of customers every day.
Having previously worked as a store manager in a number of stores, I found that HRM is facing almost the same challenges around the globe.
Despite a company’s size or type of service or product, the retail industry still suffers from a lack of professional and educated staff.
The main reason for this is that most people working in retail industries usually treat their job as a short-term solution in order to support themselves until they finish a degree or course and start a career.
However, this causes significant disruption for the retail industry.
HRM is facing serious challenges because of issues such as high employee turnover or unskilled workers in crucial positions.
Many employees at the lower or middle level consider a retail position as an easy way to make some money rather than pursuing a professional position with career development opportunities.
As a former manager I faced similar problems with my sales team. Many times the companies had to hire unskilled employees just to cover the shifts even if the employee wasn’t right for the job.
This situation is forcing them to hire anyone who is available instead of creating a workforce that is suitable for the job.
Another significant challenge for HRM is keeping employees motivated.
But how do you motivate your staff effectively or develop their potential talent when you both know there is a big possibility they will quit soon after graduation?
Competitive rates offered by many companies are also not helping the situation as there are multiple options for employees to find work elsewhere in the industry.
The first solution which comes to mind is higher wages.
However – why should retailers offer more pay to unskilled employees?
In many retail companies currently, the HRM priority is to resolve or avoid this issue by focusing on correct and efficient staffing.