Talking Retail Grocery and product news for independent retailers
Only 19% of them are “extremely confident” in their business’s potential for expansion. This group was also the least convinced that their business has returned to its pre-pandemic health.
As the country’s largest private sector employer, people management is always top of mind for retailers. It’s both a significant challenge and a crucial route to success.
The big challenge on the horizon: The National Living Wage hike
One significant concern for many retailers is the upcoming raise to the National Living Wage in the UK, scheduled to increase to £11.44 per hour in April. This will now apply to workers aged 21 and older, instead of the previous threshold of 23 and up. In our research, 26% of retailers said this change would lead them to hire fewer people than they ideally would, and a substantial 33% a need to increase prices to make up for it.
This is undoubtedly going to be a challenge. But it is also a good excuse to take a step back and reconsider how your recruitment and people management is going – and making sure it is both efficient and an effective machine for growth.
Maximising Employee Productivity through Training and Collaboration
The increase in labour costs makes it absolutely essential that you get the best out of the staff you have. Instead of focusing solely on the challenge of hiring fewer people, businesses should concentrate on getting the absolute best out of every employee.
Investing in comprehensive training programs can empower employees with the skills and knowledge needed to excel in their roles. Buddy up new employees with more experienced staff, even if it involves over-staffing your store for a few days – there will be a surfeit of small things they will learn watching someone more experienced.
Regular check-ins, where employees are encouraged to provide feedback on their daily tasks and suggest improvements, can also be invaluable. Employees often possess insights into their roles that management may not be aware of. Creating an open and collaborative environment where team members feel comfortable expressing their ideas for improvement will help your business run more efficiently and give your employees a greater stake in its success.
Diversifying Recruitment Channels
For too long recruitment has been split into two extremes. On one side is the recruitment that is essentially “free” but can be quite slow and ineffective – things like putting a job ad in the window of your business. This gives you little opportunity to survey the wider field of potential candidates and can be very slow when the general job market is tight.
On the other side are the more expensive recruitment channels which often don’t make sense for retailers looking to hire a lot of staff fast. Job posting boards like Indeed can cost over £1000 a role based on the website’s recommended settings, although this varies based on location. A recruitment consultant is also far from cheap.
We’re trying to change that at Employment Hero with the AI-powered SmartMatch. This technology can match individual candidates with every single job on our platform. We can literally queue up talent for every single job so that it can flow into a business like water from a tap. Job boards can’t replicate this service because they don’t understand which jobs exist, only vacant jobs that employers are prepared to pay to advertise.
Once SmartMatch has matched an employer with an employee they can onboard, engage, pay, off-board and recycle resources down to an individual job level with incredible efficiency. It streamlines tasks that were once manual or fragmented, saving business owners time and money, and ensuring they hire the best talent while remaining compliant.
By expanding their recruitment horizons, retailers can not only save on costs but also tap into a larger pool of candidates, bringing fresh perspectives and skills to the team.
Leveraging Technology for Operational Efficiency
Technology is crucial for making your business as efficient as possible. Automation tools, inventory management systems, and data analytics can streamline processes, reduce manual workload, and pinpoint areas for improvement.
As an obvious upgrade, advanced point-of-sale systems can not only speed up transactions but also provide valuable data on customer preferences and buying patterns. This data, when analysed effectively, can inform strategic decisions, optimise inventory levels, and improve overall customer satisfaction.
But far greater uses of technology are on the horizon as AI tools find their way through the business world. Already you can use generative AI tools to get through paperwork like job descriptions and product information more quickly. This will be just the start. The key thing is to embrace change.
Final thought: Be ready to embrace change
Retail is one of the world’s oldest workplaces, and its people management challenges are far from new. There is no magical button to press to solve all of the issues that will come up – from wage hikes to higher energy bills to business rates. But a willingness to embrace change is the best tool to have to get through it.
Damon Anderson is UK MD at Employment Hero
