Introduction - An Insider's Perspective:
In the ever-changing world of retail, there's more than meets the eye. Having a background in the industry, I've seen the challenges hidden beneath the surface. Over the past decade, the retail sector has shown consistent growth, but it's not always smooth sailing. In this article, we'll uncover the issues facing the retail industry, from recruitment and retention to engagement, and discuss how building an employer brand on the right pillars can effectively address these challenges.
1. Key Hiring Challenges - Seasonality, DEI, and Low Entry-Level Pay
Retail is characterized by seasonal fluctuations in manpower requirements, low-skilled entry-level positions, often at modest pay scales, and the challenge of achieving diversity in the workforce.
The Solution: Empowering Employee Value Propositions (EVPs)
To tackle these challenges, retail brands can create compelling Employee Value Propositions (EVPs) that go beyond pay. These should highlight opportunities for personal and professional growth. Additionally, empowering happy employees to become advocates can help build a roster of testimonials that showcase the long-term benefits of a career in retail to potential employees.
2. Key Retention Challenges - Perceptions of Temporary Jobs, Safety Concerns, Overwork, Lack of Holidays, Employee Theft
Retail jobs are often seen as temporary, especially by young adults viewing them as stepping stones to other careers. These roles, often entry-level with minimal skill requirements, contribute to high turnover rates. Safety issues like customer harassment and inappropriate behavior present significant challenges. During peak seasons and holidays, retail employees often find themselves overworked, leading to work-life balance issues.
The Solution: An Empathetic Employer Brand
An empathetic brand attracts and retains valuable employees by showcasing a positive workplace culture, growth opportunities, and favorable policies and practices. Prioritizing employee mental health and creating a safe and inclusive culture can reduce turnover and create a more supportive work environment.
3. Key Engagement Challenge - Scattered Workforce, Multi-Level Hierarchy, and Lack of Connectivity
Retail brands often struggle to build engagement due to a dispersed workforce, complex hierarchies, and communication barriers.
The Solution: Tech Tools and Empowered Mid-Managers
To enhance engagement, retail brands should focus on creating meaningful experiences for their employees. Empowering mid-level managers as torchbearers and active listeners can help bridge the gap. Investing in technology-based solutions, such as two-way communication tools, is essential to improve information flow. Initiatives include training mid-level managers to take feedback and recognizing outstanding performers, along with location-based activations to reinforce the organization's values.
4. Key Motivation Challenge - Lack of Visibility, Career Advancement, Learning Opportunities, and Common Goals
Retail jobs are often seen as temporary, with few opportunities for advancement, learning, or aligning with common goals.
The Solution: Democratize Learning and Growth
Retail brands can adopt a hub-and-spoke model, clearly communicating central goals and empowering local teams to implement them. Providing training, workshops, bite-sized learning opportunities, and fostering a sense of purpose can motivate employees. Demonstrating career advancement possibilities and providing clear pathways from entry-level roles to management positions through "lived stories" can inspire and guide employees.
5. Feedback and Improvement - Value Propositions, Referrals, and Expanding the Talent Pool
Collecting and acting on feedback is challenging in the retail sector, and building a diverse and inclusive workforce is essential.
The Solution: Establish a system of Feedback and Mentorship
Retail brands should invest in listening tools and regularly review pulse surveys, exit interviews, and social media responses to continually improve and better understand employee needs. Encouraging diversity in hiring and fostering inclusivity through mentoring, coaching, and sponsorship programs can help build a more diverse and talented workforce.
Navigating the challenges of the retail industry requires a multifaceted approach that focuses on employer branding and empathetic practices, creating a win-win for both employees and brands.
Let's connect and brainstorm solutions together!