Key challenges in attracting and retaining a workforce in retail sector

This essay discusses the challenges faced by the retail sector in attracting and retaining a workforce. It highlights the importance of employee attraction and retention for the success of the firm. The essay also provides strategies to overcome these challenges.

Running head: Human resource management
Human resource management
2018

Human resource management
(Essay on “Key challenges in attracting and retaining a workforce in retail sector”)
In today’s competitive world, each and every industry is facing enormous attracting and
retaining issues while hiring the workers. Employee attraction and retention is one of biggest
factors of the firm that helps in determining and analyzing the success and progress of the firm.
The primary motive of this task is to outline and explain that how retail sector faces ample of
attracting and retaining issues while appointing the candidates. Retail is a growing and leading
sector therefore various issues faced by the retail companies while conducting business functions
globally. At the end, it discusses that how retail companies handle and manage the key attraction
and retention issues at the workplace. Some strategies also have been explained to overcome on
these issues or challenges in the organization. More detail of the task has been elaborated below.
It is stated that retail sector is one of the dynamic and significant sectors to uplift
profitability and revenue. It also helps in increasing and enhancing effectiveness and efficiency
of the customers globally (Zanko, 2003). Retail sector provides ample of benefits to the
customers by rendering good quality of products and services to the customers across the world.
The sector is expanding and flourishing the business activities in a large extent therefore, ample
of attracting and retaining issues are being faced by workforce at the workplace (Zanko, 2003). It
is stated that attracting and retaining is significant for the success and growth of the company in
each and every industry. The high employee turnover and absenteeism put direct and adverse
impact on the loyalty and satisfaction of the firm. Therefore, it is necessary to implement new
and innovative strategies to deal with various attracting and retaining issues at the workplace.
These strategies are also essential to grow and survive the business functions and operations in a
large extent. To attract and retain the potential workforce in the retail industry, the top
management and leaders need to implement new and effective strategies such as reward,
compensations, bonus, incentives, and motivational strategies (Singh, Darwish, Costa &
Anderson, 2012).
Attracting talent is one of the biggest and typical tasks for retail sector in the competitive
market. In order to appoint talented and potential workforce, it is necessary for the healthcare
sector to attract workers by using ample of strategies and approaches (Nankervis, Baird,
Compton & Coffey, 2013). This includes handling queries of workers, using promotional
strategies and providing ample of dynamic opportunities to the employees at the workplace.
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Human resource management
Advertisement and promotions are done by retail industry to hire maximum number of potential
staff for performing roles and responsibilities in a hassle free manner. The retail sector cannot
fulfill its long term objectives and goals without hiring and retaining talented and qualified
workforce. It is significant for the retail sector to select and hire workforce having enough
knowledge, skills, talent and experience of retail sector for attaining desired objectives and
targets (Kramar & Parry, 2014).
On the other hand, retaining also plays a crucial role in enhancing and maximizing the
effectiveness and efficiency of the organization. It is a duty of the leaders or managers to retain
skilled and talented staff for performing tasks and duties in an effective way. To retain the
candidates, the organization needs to focus on ample of policies, approaches and practices at the
workplace. Along with this, enormous methods and strategies need to be used for retaining the
candidates towards the attainment of goals and objectives (Kramar, 2014).
It is seen in retail industry that there is shortage of skilled and potential employees.
Therefore, several challenged entertained by the companies while attracting and retaining right
and potential candidates for the vacant job vacancy. It is not an easy task for retail sector to
attract talented workforce from the different sources (Kramar, 2014). The retail sector faces
ample of key challenges in attracting and retaining workforce, some of the key issues are as
follows:
Due to lack knowledge, skills and talents, the retail managers have to entertain various
challenges while attracting the candidates. Knowledge, experience and skills are needed to
communicate with customers in the retail sector. Thus, it is quite typical for human resource
managers to find out persons having good and adequate knowledge, talent and potential. There is
high shortage of skilled and qualified people thus, it may affect the long term sustainability and
growth of the firm. As per Zanko (2003), attracting and retaining issues could affect the long
term revenue and outcomes of retail sector. It is essential to provide right and appropriate
information to the candidate while hiring them in a large extent. The information related to job
roles, salary packages, and work expectations need to be provided to the applicants. If applicants
are failed to get such kind of information then they would not able to perform tasks and duties
successfully. It will also affect level of satisfaction of the applicants at the workplace. Due to
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Human resource management
lack of proper and inadequate information, the retail industry will have to face ample of
attracting issues at the workplace (Arthur & Boyles, 2007).
One of the significant and vital issues that faced by HRM in retail sector is delay in
decision making. Nankervis, Baird, Compton & Coffey (2013) stated that delay is decision
making in the recruitment and selection of applicants could lead to ample of loss related to
potential candidate and revenue in the firm. Due to lack of proper decision making process, the
firm is unable to select applicants who fit for the roles and responsibilities at the workplace.
Many times, leaders or managers hold impractical demands and expectations with the applicants
that put adverse impact on the achievement and targets of the organization (Kramer, 2014).
Ineffective and inadequate decision making process could also affect in the recognition and
evaluation of the experience and talented applicants for the firm. High level of competition is
further biggest issues that being faced by retail sector while performing business activities and
operations in a global extent. It is analyzed by Sharma & Bhatnagar (2009) high level
competition may affect the business process of the retail sector adversely.
Due to high level competition, the competitors are providing innovative and attractive
salaries and incentives to the candidates. Thus, it may affect the attracting and retaining process
of the organization. Relationship with hiring manager could break or make an effective and
unique hiring process. A number of issues could arise between recruiters and their hiring leaders
or managers which are very much effective and multilateral. Cultural challenges issue also
affects recruitment process of retail sector while attracting the candidates in the international
market (Theundercoverrecruiter, 2018). Leadership development is also considered as biggest
challenge or concern for HRM that widely may affect the long term revenue and revenue of retail
sector in wider extent. Attracting and retaining issues largely affect the sustainability and
effectiveness of the organization and employees as well. Effective and dynamic strategies need
to be considered by retail sector to overcome these issues or challenges (Theundercoverrecruiter,
2018).
On other hand, retaining issues also affect the effectiveness and productivity of retail
sector adversely. Gialuisi (2011) stated that there are enormous challenges or issues entertained
by HRM while retaining workforce in their job. Gialuisi (2011) analyzed that employee retention
rate is a biggest challenge in the retail sector as mangers or leaders are struggling in retaining
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Human resource management
talented and qualified workers in the retail sector on regular basis. The ample of retaining
challenges that being faced by retail sector are discussed below.
Financial or monetary dissatisfaction is one of the primary causes for a applicant to seek
for a change in the international market. A brief literature given by Cho & Lewis (2012) retail
sector has a salary budget for each and every worker that can be raised to a some extent but not
beyond a specific limit. Retention becomes an issue when a worker quotes a remarkably high
figure beyond the budget of the company and is just not ready to any compromise. On the
contrary, Cho & Lewis (2012) argued that not only monetary dissatisfaction lead retention issues
but low recognition also rises retention issues at the workplace. Due to lack of growth
opportunities, the workers start to think about job changes.
In today’s modern world, where there is no opportunity, holding people to seek for a
change is a big and serious challenge. The retail sector tries its level best to appoint workers from
the rivalries and therefore it renders worthwhile opportunities to attract and retain the employees.
It is seen that workers become greedy for position, promotion and money and therefore, look
forward to changing the current employment and join the rivalry’s company. There is no
counseling helps in such cases and retaining workers become a terrifying (Cho & Lewis, 2012).
The contingent workforce includes temporary contract, part time, and work at home workers.
Maintaining such kind of workers in the retail sector is a biggest challenge because they are not
much attached to the firm. Budhwar, Varma, Malhotra & Mukherjee (2009) stated that
technology and managerial changes also affect the overall nature of company as well as work.
During this process, retaining issues are raised at the workplace.
It has been analyzed from the various studies that effective and dynamic training and
development programs are not held by the retail sector. Thus, it affects the effectiveness and
performance of the workers within the organization. Cross cultural training is also limited in the
retail sector which creates low loyalty, faith and moral among the workers. Aside this, the retail
sector is struggling to initiate innovative strategies, policies and technologies to retain the large
number of employees at the workplace. Chang, Wang & Huang (2013) argued that most of the
workers leave retail sector out of frustration and constant conflict with their managers and other
team members. In some other cases low salary packages, motivation issue, and growth issue also
create retention issues in the workplace (Paauwe, 2009).
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Human resource management
Heavy workload also generates various retention issues at the workplace. Due to heavy
workload, the employees are unable to fulfill their roles and responsibilities effectively and
efficiently. Heavy workload could also put direct impact on the productivity and potential of the
employees. Due to lack of comfort level and various other roles also create absenteeism and
employee turnover issues in the retail sector. Overload of work generates challenges for HR
mangers to retain and attract the workers in the retail sector. In adequate compensation packages
also lead ample of retention issues at the workplace. The employees want equitable pay for their
work but many times, retail sector could fail to provide equitable pay to the workers for their job.
It creates conflict and issues among the employees at the workplace (Paauwe, 2009).
Recognition and reward for job well done are significant and crucial factors of employee
retention and engagement. Many times retail companies are unable to provide recognition and
reward to potential and qualified workers thus it affects their satisfaction level and moral. As a
result, they decide to move out from the organization for personal growth and development
(Terera & Ngirande, 2014). Aside this, mutual trust is one of the vital reasons of employee
retention issues. Every employee wants to make good and strong relationship with their superior
while performing roles and responsibilities. In the absence of such mutual trust and loyalty,
employees decide to quit the current job or employment. Lack of mutual trust and moral, the
employees are failed to fulfill long term objectives and targets in a hassle free manner. As a
result, it may affect the long term mission and vision of retail companies in the competitive
market (Dickson, 2015).
It is analyzed that employee retention is one of the biggest retail agronomy issues in the
competitive market. With the challenges or issues in retail industry designed by the workload,
seasonality, shortage of talent and rural settings, it is quite difficult to find excellent and qualified
people (Moroko & Uncles, 2008). A measure effort, not results is one of the major generational
challenges retail sector face while retaining the workforce. Hours worked is not a measurement
and key of growth and success, nor are the ideas and thoughts that do not work. Failing to
identify and analyze that gap will cause stress, frustration and completely departure. Aside this, it
is noted that many of retail companies could fail to listen their workers and their expectations.
Thus, it creates wide range of retention issues at the workplace (Kepes & Delery, 2007).
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Human resource management
In order to handle and manage the challenges or issues of attracting and retaining the
workforce in retail sector, it is very necessary to adopt or use effective and unique HRM
strategies in the workplace (Al Ariss, Cascio & Paauwe, 2014). Effective and dynamic human
resource management strategies would be helpful in detecting and preventing the abrasion rate in
the firm and promotes and improves the employee engagement towards their job responsibilities
and roles. The innovative HRM strategies further help in encouraging and promoting the
employees for performing roles and responsibilities successfully. Some of the effective and
unique strategies that shall be implemented by HRM in retail sector have been discussed below.
It is stated that proper and dynamic planning shall be done by the company to detect and
reduce the key attracting and retaining issues. HR managers further should focus and identify the
dynamic recruitment process so that expectations and needs of the candidates can be met. Along
with this, various promotions and advertisement channels shall be used to attract ample of
candidates towards the company (Budhwar & Debrah, 2009). Work life balance is one of basic
keys that must be implemented by HR managers to retain the workers at the workplace. The top
management and managers must provide work life balance to the applicants so that they can able
to maintain a balance between personal and professional life as well (Al Ariss, Cascio &
Paauwe, 2014).
Attractive and effective performance management system shall be used to evaluate and
judge the performance and effectiveness of the workers. To provide work life balance, the
managers should focus on the compensation system, rewards, recognition and work pressure.
Maintaining strong and dynamic communication with workforce is one of the biggest elements
to retain them at the workplace. It is effective and unique to reduce and eliminate the high
attrition rate in the organization. Appreciation and recognition shall be given to talented and
qualified workers for improving and enhancing their level of satisfaction and moral (Schuler,
Jackson & Tarique, 2011).
On the above mentioned discussion, it is analyzed that there is need of dynamic and
effective strategies and approaches in the retail sector to attract and retain the large number of
workforce. Recruitment and selection is of significant functions of HRM that helps in carrying
out the business functions smoothly. The above analysis indicates that how HRM plays a major
role in making dynamic and effective policies, strategies and approaches. Furthermore, it is
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Human resource management
evaluated that it is not easy for retail sector to attract and retain the workforce from the ample of
sources because ample of challenges are being faced by the company while attracting and
retaining the workforce. Dynamic strategies and policies are initiated by top management to
overcome on these issues and challenges at the workplace.
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Human resource management
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