The retail sector employs a sizable portion of the global workforce and is often the entry point for new members of the workforce. Recently, retail employers are facing shifting operating models to meet evolving customer demands and this often calls for complex changes in workforce processes. To complicate it further, employee turnover threatens to hinder the ability to deliver exceptional employee experience.
Employees’ expectations are also experiencing a similar transformation. Workers increasingly expect their employers to provide work experience that gives them a say in how they interact with their rosters, something that can be challenging to provide while trying to meet shifting demand times.
Findings from the WEF Future of Jobs Survey show that 40% of employers worldwide are grappling with declining working-age populations, while 25% contend with the implications of growing working-age populations. As the labour force decreases in size, it becomes more important to offer new working types to attract talent. Crafting a place where employees want to work means embracing a modern approach that uses workforce management solutions to manage sophisticated rostering and shift management. The right solution can give workers the tools to achieve greater flexibility while improving engagement and the delivery of high-quality customer service.
This article outlines some of the workforce management trends impacting the retail industry while demonstrating how organisations can realise significant value by implementing workforce management solutions.
Workforce management challenges in the retail industry
- Staff shortages put a focus on retention: Despite the pervasive competition for skilled talent, more retailers in Europe (71%) and the U.S. (62%) plan to invest in hiring but also invest more in retaining and futureproofing their workforces. The retail industry is known for its high employee turnover, which poses a serious threat to delivering exceptional customer experience. Losing a single frontline employee can cost a retailer nearly $10,000 on average, a figure that varies based on payroll rates, the cost of covering shifts and the time it takes for new hires to reach peak performance. As such, addressing this turnover and fostering a positive work environment is more critical than ever.
- Future-proofing workforce processes: As AI takes over mundane tasks, retail workers are evolving into experienced orchestrators armed with digital tools and data insights. The need for automation is becoming more apparent and the industry will need to strategically focus on equipping their employees to align workforce skills with emerging technology trends.
- Demand for flexible work: Rostering is an evergreen problem and could be alleviated with new staffing solutions, such as flexible work platforms that pair qualified workers with retail managers who need to fill shifts. When deployed appropriately, employee rostering software can improve productivity and allow workers to shift their time to more meaningful work.
Workforce management technologies support customer service excellence
As the retail sector continues to navigate the complexities of a changing workforce, embracing modern workforce management technology will be key to unlocking significant value. By aligning staffing levels with customer demands, investing in employee retention and adapting to technological advancements, retailers can foster a dynamic work environment. This proactive approach not only enhances employee satisfaction but also positions organisations for long-term success in meeting evolving customer expectations. The future of retail hinges on a well-managed, engaged workforce, making it essential for employers to prioritise these strategic workforce initiatives.
Retail organisations realise a range of benefits using the ADP WorkForce Suite, creating combined benefits of up to:
- $10.8 million (organisations with 5,000 employees)
- $ 109.1 million (50,000 employees)
- $227.6 million (100,000 employees)
These estimates are based on the aggregated results of value studies with our existing public sector customers across a range of deployments and organisational maturities.
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