As the cost-of-living crisis deepens in the run-up to Christmas, the retail workforce could hold the key to survival, says Accenture retail strategy lead for Europe Kelly Askew

Christmas shop worker putting a plant pot on a display

The retail industry is in the middle of a perfect storm. We are facing the most economic uncertainty since 2008, and yet the great resignation and the current workers’ market mean it is harder than ever to maintain a fighting-fit workforce.

With the golden quarter now upon us, now is not the time for retailers to overlook their employees. 

A challenge on their hands

This year’s peak retail season has started earlier than ever before and retailers are acutely aware that their workforce holds the key to ensuring their business can put its best foot forward this golden quarter.

Accenture recently surveyed 150 retail executives in the UK and found that almost nine in 10 admitted that high employment and the challenge of recruiting and retaining staff has influenced their preparations for this year’s festive period. 

With many people deciding to leave the retail workforce for other industries in recent years, hiring and retention conditions have never been tougher, yet retailers have never needed their employees more. 

“More than half of retailers say they have taken extraordinary measures to address the workforce challenge this year”

In acknowledgement of these extreme circumstances, we’ve seen some brands in recent months ramping up their hiring plans ahead of the holiday season, with the likes of Aldi pledging to hire 3,000 people over the period.

Indeed, more than half (54%) of retailers say they have taken extraordinary measures to address the workforce challenge this year. Just 1% have made no changes at all. 

And yet, despite this, the industry is still facing a challenge in attracting candidates, with 37% of leaders reporting hiring challenges across their entire business. 

It is no secret that the past few years forced many people to rethink what they want from work, prioritising environments with more flexibility, the chance to progress and a focus on wellbeing.

With retail employees being deemed frontline workers during the pandemic, all while having to navigate stock challenges and staff shortages, retail leaders have a hefty task on their hands to make the industry an attractive one to work in. 

A reason to join and a reason to stay

Even before the cost-of-living crisis, financial incentives have been an important measure to give retailers the best chance of adequately staffing the festive season. This year, 41% of leaders said they were using new-joiner and retention bonuses to attract and retain the staff they need. 

Some big names in retail have gone a step further to support their employees through the cost-of-living crisis, with the likes of John Lewis, Sainsbury’s and M&S offering their staff financial help such as wage increases, cost-of-living payments or free meals during the winter. 

This is an encouraging step, particularly as we know financial worries have a large impact on people’s wellbeing, so retailers are recognising their duty to promote a supportive culture throughout the business. 

But what about attracting and retaining people beyond the festive season? It is a factor that is all too often overlooked, and a huge part of that is changing the perception of retail work. 

“Ensuring staff feel fulfilled at work and are developing skills they can take with them throughout their career is a hugely important but massive challenge”

For an industry where people often work alongside studies, part-time or during seasonal periods, it is a question of incentivising workers to pursue a career in retail, making them feel they have a future at the company, giving them a sense of belonging and making them feel adequately supported at work. 

It is about turning hourly minimum-wage employees into customer service gurus who can spend most of their time making sure customers have the best experiences – and ultimately spend more – versus doing monotonous work around a store. 

Ensuring staff feel fulfilled at work and are developing skills they can take with them throughout their career is a hugely important but massive challenge retailers find tough to crack. In fact, almost half (47%) of retail executives said they have re-designed their training and recruitment process to combat this. 

The retail workforce is, of course, not limited to the shop floor, but the type of work carried out in-store needs to change.

Technology, such as automation or sensors, is a crucial part of the puzzle – one that employees need to feel enabled by, rather than constrained by. By moving certain work from stores to being managed centrally – such as HR, finance, and other admin – workers can focus their time on more fulfilling activities that add value, such as becoming brand ambassadors on the shop floor. 

Going forward, retailers will need a versatile and flexible workforce that reflects the new multichannel retail world.

In addition to equipping employees with the expertise specific to one job, such as knowing about trends in a fashion store, retailers will train workers to identify trends through data and analytics to improve and better manage the entire customer experience.

The result? A much more rewarding and interesting role for the employee, and a better outcome for the business. 

In times of economic uncertainty, it is tempting to prioritise more short-term solutions to improve business performance, often at the expense of workforce culture.

But as retailers grapple with the cost-of-living Christmas and the ongoing war for talent, those who look after their staff – both in the short and long term – will be better placed to weather the ongoing storm.

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