HR in Retail

Anirban Chakraborty
Arpan Banerjee
Indranil Das
Indira Sar
Mansur Husain
Prithwish Roy
Sayan Sarkar
 Introduction
• Retailing can be defined as the buying and selling of goods and
services of different kinds under one roof.

• It is the timely delivery of goods and services demanded by

consumers at prices that are competitive and affordable.

• For a long time, the corner grocery store was the only choice
available to the consumer, especially in the urban areas. This is
slowly giving way to international formats of retailing.

• E.g. lifestyle/fashion segments (Shoppers' Stop,Westside),

Apparel/accessories (Pantaloon, Levis, Reebok).
• The Indian Retail Industry stood at a value of a whooping US $478
billion in 2009.

• The Indian retail market, which is the fifth largest retail

destination globally, has been ranked as the most attractive
emerging market for investment in the retail sector by Global
Retail Development Index (GRDI).

• As per a study conducted by the Indian Council for Research on

International Economic Relations (ICRIER), the retail sector is
expected to contribute to 22 per cent of India's GDP by 2010.
Major Players
 Role of HR
• Retailing is a hard & rigorous business.

• The floor staff stands on its feet for up to nine hours every day.

• The job of the salesperson on the floor is physically exacting and emotionally draining.

• Hence the Role of an HR in this industry is quite vital since it has to preserve & groom the
talent.

• Recruiting skilled & energetic sales person.

• Organizing Induction programme for the new employees.

• Providing adequate training, health & hygiene facilities, healthy work environment etc.
• Motivating the employee by organizing career workshops & seminars
for their development.

• Counseling the employees.

• Handling grievance of the employees & trying to solve as much as

possible.

• Taking care of the performance appraisal.

• Educating the employee about the company’s growth plans which

would prove beneficial to them as well.

• Explaining various growth opportunities.

Recruitment Pattern
For Junior level

• Junior level, required in a

mass number.

→go ahead with paper ads for

walk-ins

• Requirement is less for junior

level

→ go ahead with consultants and

reference recruitments
• The recruitment process starts with an interview taken by

→ department managers

→ followed by store manager

→ HR

→ team leaders.
 For Middle level

• Middle level, then

→ consultants

→ Job - portals

→ news paper ads of walk-ins.

• The recruitment process starts with first short listing by HR then
interview is conducted with

→ department head

→ Store Manager

→ Zonal Manager

→ HR
 Attrition Trend

Retail is the largest employer after agriculture -8% of the working population.

There seems to be a high level of attrition in the retail sector which is almost 40% according to a
recent study.

Front end jobs are facing an attrition rate as high as even 80%.

Hard to retain talent since other companies attract them by offering more challenging role & pay.

A famous retailer once said “take away my shop but leave my people, and soon we will have a new
& better retail shop”.
Remedies from HR view point:-

The key HR initiatives introduced , meant to assist new recruits adapt to the
company's work culture and value system and increase motivation.

A congenial working environment, support learning & training facilities &

highly competitive pay structure.

Providing job satisfaction by assigning-right project to the right person.

Many companies do conduct Leading Performance Program to impart

leadership skills to budding leaders.

HR initiatives such as incentives, over time wages, reward & recognition,

overseas trips for target achievement and other such incentives that are
directly linked to the performance parameter would help in reducing attrition.
 Impact of Recession on Retail

• National Bureau of Economic Research (NBER) defines Recession as:-

• Significant decline in economic activity lasting more than a few

months, which is normally visible in real GDP, real income,
employment, industrial production, and wholesale-retail sales.

• Causes for Recession:

• It takes place when consumers loose confidence in the growth of the

economy and spend less.

• This leads to a decreased demand for goods and services, which in

turn leads to a decrease in production, lay-offs and a sharp rise in
unemployment.
• Retail sales fell off a cliff in September’07, plunging by the largest
amount in three years as worried consumers shunned the malls and
auto showrooms in the midst of the country's financial meltdown.

• The Commerce Department reported retail sales decreased 1.2

percent.

• Sales at department stores fell by 1.5 percent.

• Sales at furniture stores fell by 2.3 percent.

• Sales at appliance stores slid by 1.5 percent.

• Hence unemployment increased consumers' worries.

 Best Practices
• Leading global retailer Marks & Spencer outsources manufacture of its
merchandise. However, when it appoints a new supplier, its managers first check
the staff toilets and dining facilities.

• Retailers like Woolworths and Marks & Spencer for instance clarify timings,
responsibilities, operating conditions, policy on uniforms, leave, breaks and so on.

• Retailers like Walmart offers benefits program like Vision Care, Dental, Medical,
Travel Insurance, Disability, Life Insurance etc.

• United Colours of Benetton offers fully paid vacation for the employee who
achieves highest sales during seasons.

• Barista & Cafe Coffee Day coffee parlours offers part time jobs to college students
& also summer internships.
 Latest News
• British retail major Marks & Spencer is looking at scaling up its India
operations and plans to open at least 50 more outlets in the country
over the next few years.

• Koutons Retail India plans to open 200 stores in 2011 in addition to its
existing 1,400.

• Reliance Footprint part of Reliance Retail, plans to spend US$ 86.62

million to add 100 outlets across the country in two years to sell
branded footwear.

• Lifestyle International plans to have over 50 stores across India by

2012–13.

• Wills Lifestyle plans to expand its operations by opening 100 new stores
in the next three years. It also plans to concentrate on online buyers.

• Pantaloon Retail India is planning to invest US$ 77.88 million this fiscal
to add up to 2.4 million sq ft retail space at its existing operations.
 Workforce Development
• Workforce development means attracting new employees &
developing the people in your organization to improve the way you
deliver your services and activities. It can include paid workers,
volunteers and trustees.

• It may also include the work you do to increase the recruitment

and retention of high quality people to your sector.

• By offering healthy foods in the cafeteria and/ or vending

machines.

• Providing information to employees by distributing free brochures

and wellness newsletters. E.g. Health magazines, ways to avoid
stress etc.
• Providing free health screenings. E.g. Inviting Red Cross &
Philippine Cancer Society.

• Providing partially reimbursed memberships to off site health

facilities.

• Providing showers and a locker room at the work-site.

• Wellness programs may be one of the few employee benefits that

pays money back to the organization. E.g. decrease in
absenteeism, positive & healthy working environment etc.
 Survey
  1 2 3 4 5 6 7 8 9 10
Do you spend more hours than you would Y N Y N Y N Y N Y N
like at work? YES/ NO
Do you find yourself thinking about work N Y N y Y N Y N Y N
instead of focusing on hobbies/ home
activities? YES/ NO
Do you get enough sleep, exercise & Y Y N Y Y N Y N Y N
healthy food? YES/ NO
Are you living your ideal life? YES/ NO Y N N N Y N N N Y N

Do you get enough support from your Y N N Y Y N Y Y Y N

manager/supervisor /colleagues to
balance your work & family
commitments? YES/ NO
Do you have sufficient opportunities for Y y Y N Y y Y y N Y
personal & professional growth?
YES/ NO
 Conclusion
• 50% of the respondents stated that they spend most hours at their jobs, and thinking more about their
jobs in comparison to their hobbies, home revealing high work load, and alack of work-life balance.

• About 60% respondents responded that they are getting proper support from their peers, supervisor
revealing more or less a presence of good working environment in the retail industry

• About 90% of the respondents responded that they have opportunities for personal and professional
growth

• Due to improper work life balance about 85% of the respondents responded that they don’t lead an ideal
life