Not just a job
Retail market overview
There are mixed signals coming out of the retail sector now but what is not in doubt is that the retail industry will remain fiercely competitive. Winners and losers will emerge in every sector as retailers react with varying degrees of success to changing consumer behaviour and demand. The ability to deliver an efficient and attractive retail proposition will be the key to their ultimate success, and that comes down to their frontline staff.
For all retailers, the retention and motivation of talented staff across all functions will become increasingly important. Investment in people is a prime strategic goal for retailers.
According to the Australian Bureau of Statistics figures, there are more than 77,000 retailers in Australia, operating more than 200,000 retail outlets, and producing more than $200 billion in annual sales. It is estimated that more than 50 per cent of the adult population is currently working or has worked at some time in their life in the retail industry.
A land of opportunity, one might think, but retail also has a reputation for low morale and high turnover at store level. This negative image has not been helped by one of the toughest recruitment markets retailers have had to confront in the past 10 years.
The war for talent
Five years ago at Frontline Recruitment Group the average time between a position being listed and that position being placed was 28.7 days, now it is 18.6 days, this means recruiting speed has increased 35 per cent in five years.
The speed of recruitment in this tight labour market meansyou have to move faster than ever before; candidates are goingfor interviews and receiving multiple offers in the same day. You also have to understand the generational issues associated with the candidate.
Retail organisations are starting to discover that the secret to attracting and retaining valued staff has less to do with money and is more about creating an attractive culture. One of the greatest drivers of your team's success is their level of engagement. Engaged employees are less likely to resign, unlikely to call in sick when they are not sick, consistently do more than is required, and have far greater levels of quality and productivity.
Retention of key personnel is paramount to success in a tight labour market with narrow cost margins and escalating wages.
So what are retail candidates looking for and what issues does this give rise to for employers?
Work and life flexibility
The retail industry is characterised by a high degree of casual, part time and seasonal employment and high staff turnover rates mean retail shops face continual recruitment and training challenges. Australia has the second highest rate of part-time work in the developed world and those workers are among the best paid.
The liberalisation of workplace laws and awards has made it easier for businesses to hire part-time staff, while trends such as the expansion of higher education have created more demand from employees for part-time work. To attract the best staff the retail sector has to look at flexibility in the workplace for students, parents returning to work and the ageing population who still want to contribute.
There are three generations currently working side-by-side in the Australian labour market: Baby Boomers (b. 1946-1965), Generation X (b.1966-1980) and Generation Y (b. 1981-2000). Each generation has distinct characteristics that affect how the war for talent is waged. The Baby Boomers have a stronghold on the labour market due to their sheer size and companies need to be age friendly in order to attract people from this demographic. They can do this by giving employees opportunities to contribute to society, providing a flexible workforce that balances work and retirement and empowering them.
Generation X greatly values a work-life balance, is hungry for success and longs for flexibility and opportunities to excel with organisations. Generation Y is by far the most confident, growing up in a society that placed attention on individual self-esteem and self worth. Members of Gen Y want to be involved in the company's shared crusade, are lifestyle centred and want quick rewards.
A major challenge for companies therefore involves understanding each generation and bridging any gap between them.
For retailers it means attraction and retention strategies have to appeal to these three groups. Flexibility surrounding packaging, the hours worked, candidate experience, and the consideration of transferable skills across sectors enables retail companies to expand the pool of available candidates.
Not just a job in a shop
The retail industry was once considered to offer few career prospects but is now perceived as an industry providing many opportunities for customer-orientated people.
Companies are offering school leavers and graduates career paths in retail that include comprehensive training programs, financial bonus systems and attractive career advancement opportunities. Retailers hoping to attract top performers need to accentuate the career potential to overcome the 'job in a shop' perception; to show a retail role is more than a filler job that tides the prospect over until he or she finds what they consider to be a real job.
This needs to be balanced with the need to facilitate flexibility with hours for part-time and casual employees.
Who makes the best retailers?
In most unskilled roles employers evaluate and employ staff based on previous experience and when they let them go, it is usually based on their attitude. The best retailers have an incredible attitude; they love the product, love what they do and love the interaction with people. They have to be passionate and enthusiastic, they have to demonstrate a desire to help people, they need to have a balance of sales skills and enjoy the thrill of the chase, and this all needs to be balanced with a desire to provide outstanding customer service.
The best retailers are genuine, people who build rapport and relationships with their customers. Think about your friends and why you are drawn to them and it is generally because of their sincerity and commitment; the best retailers exhibit these same characteristics.
We need to turn the paradigm of recruitment on its head; hire on attitude and fire on skills. You cannot teach someone to be passionate, outgoing and to love what they do but you can take those raw ingredients and train them to be successful retailers and give them the skills they need to be successful.
So who makes the best retailers? Those candidates who want to be the best, and you will know it as soon as you meet them.
By Peter Davis, Managing Director of Frontline Recruitment Group a national network of franchised recruitment agencies established in 1995. 14.10.2008
FCA Member
Contact Frontline Recruitment Group
Level 20, 500 Oxford Street
Bondi Junction
NSW 2022
Tel: 02 9347 3844
Fax: 02 9347 3889
