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Our ‘Industry in Focus’ series reviews the current and future people-related challenges facing key industries and the role that technology will play in resolving those challenges. In this edition, we look at retail – a sector that will once again need to demonstrate resilience to survive waning consumer confidence and ongoing labour shortages.
A talent crisis in retail
While the far-reaching impact of COVID-19 has faded in 2023, the combined impact of inflation, increasing costs associated with wages, rent and insurance, in addition to natural disasters such as the Auckland flooding, have taken a toll on retailers.
Perhaps hitting hardest was the Minimum Wage increase in April, making it difficult to attract and retail talent. Well-trained and experienced staff are essential for delivering quality customer service, yet this is difficult in a highly competitive talent market.
With talent scarce, retailers have had to broaden their talent pools, develop talent from within, focus on greater employee flexibility, and prioritise diversity, equity and inclusion (DEI) in their hiring practices.
Improving employee retention in retail
In some ways, the makeup of the retail workforce lends itself to high employee turnover. Some 50% of all retail workers are part-time or casual. Retailers who know the makeup of their workforce can take steps to retain them – this extends to benefits, flexibility around rosters and schedules, and professional development. The tight labour market has led retailers to refocus on building internal talent pipelines to fill roles without having to rely so heavily on external hires.
Employers are wooing retail workers with benefits and incentives such as in-store discounts, training opportunities, and commissions and incentive payments. Others are improving work-life balance and the overall health of employees by reducing the use of changeable, unpredictable rosters and empowering employees to bid on shifts that suit their personal circumstances.
The role of technology
The challenges facing retailers are multi-faceted and complex. There are no easy solutions. Workforce management software can at least ease some of the people management challenges being faced. From optimising rostering and scheduling to award interpretation and better decision-making capabilities thanks to in-depth workforce analytics, technology can ease the burden on overstretched managers and improve the employee experience for retail workers.
For further insights and tips on how to navigate through the people-related challenges facing the retail sector in New Zealand, complete the form to download our fact sheet.