One of the greatest challenges the retail sector faces in this regard is dispelling the myth that retail lacks real career prospects. Despite the fact over 1.2 million people work in the retail sector, the industry has a large casual workforce and much of this is made up by high school or university students who work for extra pocket money. Many who go through this system fail to see beyond their jobs on the shopfloor and for this reason the industry is often regarded as something transitory lacking the appeal of other industries which promise long-term career development.
For those who see beyond the myth and choose a career in retail, there is a myriad of prospects available ranging from visual merchandising to area management, or marketing through to human resources to name a few. The prospects are clearly there so this raises the question of how to attract fresh blood to the industry and entice them to stay.
A changing world:
According to a report Generation Y: Attracting, Engaging and Leading a New Generation at Work published by Drake Recruitment, there have been four major shifts in our demographics that are radically redefining the workforce and management is having to adapt their recruitment, retention and training strategies accordingly. These shifts include an ageing population, transitioning generations, increasing options and a redefinition of work-life.
Australia's population is getting older and this is leading to a rapidly ageing workforce. Not only are employers faced with catering to ageing staff, but as Baby Boomers (born 1946-1964) make an exodus from the workforce there will be a void that needs to be filled.
The result of this "changing of the guard" is the biggest generational shift Australia has seen in six decades. We presently have three generations spanning the workforce (Baby Boomers, Generation X and Generation Y). Over the next two decades, the Baby Boomers will leave the workforce and for businesses to survive, a good succession plan needs to be in place. At a strategic level the knowledge and leadership of Baby Boomers needs to be transferred to up and coming Generation X managers (born 1965-1979) and Generation Y employees (born 1980-1994) as they enter the workforce. However, in a growing economy retail is also experiencing more immediate labour demands which need to be filled and retiring and downshifting staff have to be replaced.
Enter Gen-Y:
Stephanie Dinnell who led the research has pointed out that Generation Y currently comprises 20 percent of the total workforce and within five years will make up 40 percent representing an important group for employers. Her report suggests that Generation Y should be embraced and better understood because much of this group is now entering the workforce and Generation Y employees are in the initial stages of setting their career trajectory.
Dinnell's advice appears even more crucial to the retail sector, where more than 40 percent of its workforce is already made up of Generation Y employees. These figures suggest that effective retention strategies will be critical to the sector's sustainability.
Research indicates that the most successful employers are those who understand this group's value systems and are able to implement targeted recruitment drives based on these values. Generation Y was raised in a time of more lenient or positive discipline from their parents, where they could freely express their views and understood their rights and protections. Translated into the workforce, Generation Y workers have little regard for a hierarchical environment and managers have to earn their respect. Generation Y workers expect to have a say in the workforce and respond well to a collaborative environment, require constant praise and expect promotions and career development.
Generation Y employees have been raised in an employee's market with more options to choose from and other aspects of their lives take as much prominence as their working lives. The unemployment rate is now half of what is was in the early 1990s and there are now more choices vocationally. Opportunities for education, travel, relocation and even the ability to retrain for another career are now commonplace and employee loyalty is increasingly earned by incentives.
Because Generation Y employees have only experienced the workforce in an employee's market they have high expectations. What the Drake report found was that Generation Y prefers a workplace with a good social environment, variety in a role, interesting/challenging projects, team and social interaction, responsibility, effective leadership, training and development programs, and most importantly career opportunities. Because of the competition between other companies and other industries, if their needs aren't met, they quickly move on. Research has revealed that 63 percent of Gen-Ys stay in a role less than two years and the typical tenure is only 18 months.
Recruiting and retaining Gen-Y:
Australian Human Resources Institute national president Peter Wilson recently told the Daily Telegraph that successful retailers demonstrate flexibility, innovation and creativity and the ideal retail employee has strong computer skills, information management and communication skills.
The advantage of recruiting staff from Generation Y (Gen-Y) is they are technologically savvy (they grew up with technological gadgets), entrepreneurial and they understand the lucrative Generation Y market and are therefore well suited to finding new ways to source and meet customer’s needs. The biggest challenge for employers is holding on to them.
In an article in The Australian late last year, human resources consultant Karen Gately said that the number one strategy for managing Gen-Y is about career management – being very proactive and deliberate in progressing their careers through the organisation. If you’re not prepared to do that, then chances are they will go elsewhere. Salary might still be an effective recruitment tool, but it’s not a useful retention strategy.
Kate Lynch from the Apparel Group says that attracting Gen-Y employees to its businesses such as Sportscraft or SABA isn’t an issue because the company’s value offering is market competitive. She says that the hardest part is keeping them interested and engaged enough to achieve longevity and this is where the Apparel Group maintains its focus. “In terms of retaining Gen-Ys we try to ensure their individual development plans include new initiatives and project work to keep the level high.”
Lynch says that the Apparel Group ensures its high potential employees receive a differentiated experience to support them in developing their potential as an incentive to stay. Many more retail businesses are also developing initiatives to hold onto their staff and some are upping the ante by offering apprenticeships, training opportunities and incentives. Peak industry body, the ARA, and its training arm ARA Retail Institute, is also playing an advocate role within the industry by heavily promoting retail as a career through its Retail Employment Pathways program under the government’s Productivity Places scheme.
Funded by the Department of Employment Education and Workplace Relations (DEEWR), the eight week accredited program is a combination between classroom and on the job training. The ARA partners with job network members in various regions who recruit candidates specifically for the program. Candidates then undergo a selection test to assess their suitability and if successful, the program commences soon after. The course starts with two weeks training from highly qualified and well-seasoned retailers. In the third week the trainee undergoes their first work placement. At the end of this week the trainer visits the host employer to gain feedback and establish the trainee’s strengths and weaknesses. The following week the trainee is back in the classroom for feedback and refinement and this process is repeated again before the trainee has his or her final work placement.
ARA Retail Institute Director Garry Terrill says that the program is a useful tool for attracting Gen-Y candidates because it not only promotes real career opportunities for those entering the workforce, but there is also the prospect of ongoing development which may help in retaining them. “The Retail Employment Pathways program not only offers job seekers elementary training at Certificate 2 level. As part of the employee’s ongoing development we offer training in similar formats at Certificate 3 in Retail, Certificate 4 in Retail Management as well as a Diploma in Retail Management.” He points out that in many cases, the training results in ongoing employment.
“Essentially it is a win-win situation where the trainee has found employment with real prospects, the employer addresses their immediate needs and the retail sector gains more skilled personnel and potential leaders to the industry.” Terrill adds that it is programs like these that the retail sector needs to compete with other industries.
Into the future:
Hudson Australia/New Zealand Chief of Staff Gary Lazzarotto told The Australian that the most important issue in addressing the current skills shortage and potential void as Baby Boomers make their way out the door is developing effective leaders who can connect with and inspire people.
The problem industry is facing is attracting potential leaders in the first place and achieving sufficient longevity so that they can develop into capable leaders. Leaders take time to develop and the challenge is Gen-Y wants everything now. Stephanie Dinnell says that the only way to retain Gen-Y staff is to manage their careers from day one. Promotions aren’t always possible every few months, so she suggests employers understand their value systems and add variety, challenges, training and most importantly, show them where it is all heading.
