HRMT20024: Challenges in Attracting and Retaining Retail Employees

This essay delves into the significant challenges faced by the retail sector in Australia concerning employee attraction and retention. It identifies key issues such as salary dissatisfaction, inadequate health and safety policies, and excessive working hours as major contributors to employee turnover. The essay highlights the competitive nature of the retail industry, including factors like workplace politics and high-pressure environments, and their negative impact on employee morale. It emphasizes the need for companies to develop human resource strategies that value employees, focusing on themes like performance management, reward systems, and mentorship programs to improve retention. The analysis covers challenges like high turnover rates, difficulties in training and development, and the impact of customer service quality on brand image. The essay also examines factors such as lack of career progression, limited decision-making opportunities, and overwork, which influence employee departures. The essay concludes by emphasizing the importance of leadership, proper human resource planning, and recognition systems in fostering a positive work environment and retaining skilled employees in the retail sector.

Running head: CHALLENGES IN ATTRACTING AND RETAINING EMPLOYEES IN
RETAIL SECTOR
Challenges in Attracting and Retaining Employees in Retail Sector
Name of the Student
Name of the University
Author note

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CHALLENGES IN ATTRACTING AND RETAINING EMPLOYEES IN RETAIL
SECTOR
Introduction
The essay throws light in identifying and analysing the different kinds of challenges
faced by the retail sector companies in attracting and retaining the different employees in the
organization. Employee Retention has become a key and crucial issue in the retail sector as
there are different issues faced by the employees in the retail companies which include the
salary dissatisfaction, no proper health and safety policies available for them in the
companies along with overtime working hours without any kinds of extra payment. The
entire retail sector is considered to be the vast sector which is inclusive of different other
sections such as supermarkets, discount houses, online retailing along with Department
stores.
In the retail industry, the communication is done in a direct manner wherein it helps in
maintaining appropriate relationships with the different customers. The success of any
business mainly depends on the performance related to efficiency of the employees working
in the companies (You & Barry, 2016). The similar kind of approach is applied for the
different employees in the retail sector as well. However, in the last couple of years, the
different organizations under the retail sector have been experiencing massive rate of
turnover among the different employees (AHRI.com, 2020).
There are different factors which are responsible for the turnover which includes the
working on weekends, late working shifts along with other factors that leads to the turnover
of employees in the retail sector (Retailbiz.com.au, 2020). In addition, it has been noticed that
there are different other factors such as immense level of competition, politics in workplace
and the high pressure at work which are impacting the morale of employees at retail sector
and influencing the retail sector negatively (Vahl, 2018).

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The main aspect of the assignment is therefore the fact that in order to attract as well
as retain the different employees at the retail sector in the Australian economy. The
employers and the higher officials of the company are required for developing the strategy
which will be valuing human resources. In the respective essay, after the analysis of the
different challenges in attracting and attracting the employees in retail sector, there are
different themes which needs to be followed for reducing the same such as the performance
management aspect, health and safety policies, Reward and Recognition System, proper
Human Resource Management Planning and proper Programs Related to Mentorship which
will be capable of influencing the workers in the retail sector.
Analysis of Key Challenges in Attracting as well as Retaining Employees in Retail Sector in
Australia
As commented by Storey (2016), the human resource management industry mainly
includes strategic planning along with implementation of different strategies for development
of productive workforce with the help of motivation. However, in the present scenario, the
different retail sectors face different challenges related to the human resource management as
the different employees in the retail sector directly deal with different customers and it can be
impacting the growth of the company negatively. While considering the different kinds of
challenges, both long and short-term, the objectives need to be considered effectively.
As opined by Purba, Winata and Efendi (2019), the main key challenge is the high
rate of the turnover among the different employees who are working in the retail sector. It
means that the employees in the respective sector come and go and due to which it impacts
the entire productivity of the firm as the work-related stress impacts the effectiveness of
performance of the employees (Purba, Winata & Efendi, 2019). Therefore, due to the
respective aspects, it is difficult for the Australian retail companies to customize the training

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and development programs as per the needs of the employees and it is difficult than any other
sector (Madariaga, Oller & Martori, 2018). It causes high level of wastage in time as well as
resources of the company as there is constantly hiring and recruiting of the different
employees. Moreover, when it is being noticed by the customers, it creates high pressure on
the firm to manage the customer loyalty (Alias et al., 2017)
As commented by Clayton (2018), for maintaining the high-quality services in the
retail sector, attracting the new employees along with retaining the old employees, both are
equally important as it will be able to improve the brand image of the company in a strong
manner. As stated by Ehrhart and Kuenzi (2017), the long-term as well as loyal relationships
with the different clients play a crucial role for maintaining the growth in retail sector and
retention of the different employees is highly essential for the overall economic growth of the
company strongly. It is essential for the overall success growth of the company as the
longevity of the different employees working in the retail sector helps in improving the brand
image as well as reputation of the company (Albalawi et al., 2019).
As opined by Albalawi et al. (2019), the employee turnover in the company can be
leading to the ineffectiveness in the process of attracting the different customers in the
company in a proper manner. For maintaining the strong and efficient relationship with the
customers in the market, the satisfaction is the vital element that is needed to be incorporated
by the company for improvement of the services which are delivered by the company. The
entire retail industry is changing every year and, in such scenario, the higher management
officials such as the CEOs or the different managers face high level of difficulty in dealing
with the changing workforce in a constant manner (O'Brien, Markey & Pol, 2018). There is
high level of competition existing in the retail sector and due to the respective condition; it is
impacting the preferences of the customers to a large extent (O’Brien, Markey & Pol, 2018).

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Due to high level of pressure in the retail sector, it is creating pressure on the officials
of the company as the retention of the staffs becomes a huge problem. The staffs are
preferring to move to the different companies which are offering them with high salary along
with different other benefits (Markey, McIvor & Wright, 2016). Therefore, it is impacting the
efficiency of the company negatively and affecting the entire productivity and profitability of
the company as a whole.For instance-Woolworths is one of the most popular retailers present
in Australian economy and there are various competitor organizations available in the market
such as Aldi or Wesfarmers that are offering better aspects to the employees and it is leading
to the turnover among staffs in Woolworths.
From the respective example, it can be made clear that the excellent companies need
to develop the workplace as per the ever-changing requirements and it should be as per the
industry standards and matching the different interests of the different employees in a suitable
manner. There are different other factors which are leading to the ineffectiveness of the retail
sector and the employees are resigning from their present jobs.
There is lack of progression as well as growth is the first and foremost aspect which
affects the growth of the retail sector. As the retail sector is changing, in such cases, the
opportunity for growth as well as development is essential for retaining the employees. When
the employees feel trapped in the dead-end position, they are likely towards other companies
for chance in improving their status along with income.
There is lack of opportunity provided to employees for the purpose of decision-
making is the other major aspect which needs to be analyzed by the retail sector companies.
The micromanaging of the aspects stamps out the entire opportunity for innovation which is
not wanted by employees in the company (The Business Conversation.com.au, 2020). The
over managed employees present in the company are growing frustrated as there is lack of

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freedom that contributes to the ineffectiveness in the performance of the company in the
overall manner (The Retail Solution.com.au, 2020).
There is the other aspect which is affecting the growth of the company in a negative
manner is that they are making employees overworked. In the period of the economic
pressure, there are scenarios, wherein the employees are being made to work for extra hours
without any extra payment given to them. There is high pressure among the different
employees as there is no balance between personal and professional life. At last, it contributes
towards the turnover among the employees as they feel that they are not being valued and it
impacts their effectiveness (Gordon, 2017).
Therefore, it has been noticed that these are the different aspects which leads to the
challenges in attracting and retaining the employees in the company. It is noticed that there
are differences in treating the different team members which leads to the turnover of
employees to a great extent (Gonzalez, 2016). For the company’s higher officials, it should
be made clear that the top priority of employers in the company needs to employees as they
are the asset of the organization. When the company is not having any working related
policies for the employees who are employed, it can make the employees feel that they are
not wanted and it can affect the growth prospects of the company to a large extent.
Analysis of Themes for Retention of Employees in Retail Industry
Effective and most appropriate leadership is the key element which needs to be
implemented by the retail sector companies for improving the turnover among employees
which are taking place in a large number. The effective and efficient leaders have the
capability for motivating the different employees in increasing the efficiency and enhance the
moral values. Due to the same, it improves the sense of the loyalty towards company and
these results in the retention of employees within the stipulated time frame. The retail

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industry is constantly changing in the present scenario and retention of the skilful level of
employees is challenging in nature.

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Analysis of Key Themes in Attracting and Retaining Employees in Australian Retail
Sector
Proper Human Resource Management Planning- It is the first and foremost aspect of
the attracting and retaining the different employees in the company wherein planning is the
key element which will be heling the HR department in making the employees established
within the company successfully. Onboarding is considered to be the continuous process
which makes the employees regarding their responsibility and makes the employees feel
wanted in the different aspects of the work which are done by them (Alias et al., 2017). The
retention of employees is achievable when the organization has proper management related
strategies.
The culture of the company needs to be improved as it will be capable of improving
the growth prospects of the company and it will be making the employees feel happy. When
the employees feel happy, they are able to achieve the different aspects of the company and it
will be making them feel that they are valued and they give their best in achieving the most
successful results (Alias et al., 2017). For the bosses, they need to understand the fact that the
support is the crucial element which needs to be implemented by the companies for making
the employees aware regarding the different tasks which needs to be performed by them in a
strong manner.

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Reward and Recognition System- It is the secondaspect and theme which needs to be
implemented for improving the aspect and it will be beneficial for retaining the employees.
When the different employees try their best for achieving the organizational goal, she or he
expects some level of appreciation from the high level of authorities. The appreciation can be
both monetary and non-monetary rewards which can be small or big and it will be capable of
improving the motivation among the employees. There can be support provided through
managerial training initiatives, the managers need to keep a tab on the managers for making
sure that the employees are performing the outstanding job and achieve the positive results
(Alias et al., 2017).
It will be motivating employees for performing in an efficient manner and as
commented by D’Netto et al., (2014), retail industry is competitive in nature, the employers
in the company needs to be strategic for increasing the retention among employees suitably.
Both small or big appreciation can make the employees feel that they are important for the
respective company and their opinions are being valued as well. The rewards can be termed
as extra day off or bonuses or appraisal needs to be done on a quarterly basis which will be
making them feel important and their growth becomes appropriate in the respective sector.

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Managing Health and Safety of Employees Working in Company- It is the other
aspect which can be implemented by the companies in the retail sector which will be efficient
in improving the performance of the company and make the employees feel safe. Health and
Safety is essential as it protects well-being of the employees, customers along with visitors
(Gan & Yusof, 2019). Looking for the workplace health and safety makes the good sense of
business which will be capable of implementing the effectiveness in the scenario of
performing the business activities. It has been noticed that there is negligence of the health
and safety of the employees due to which the organizations can lose staffs and reduce the
profitability of the company negatively.
As commented by D’Netto et al. (2014), the unsafe working environments as well as
the workplace related injuries are bad for the employee morale and it impacts the working
environment of the company. For increasing the entire productivity of the company to a high
level, the employers of the company need to maintain healthy working environment which
will be suitable for building stronger relationships with employees and it will be helpful in
creating safety working procedures for the growth of the company positively. The
empowerment of employees is the driving force which makes the employees stay in the
company and it will be helpful for maintaining the sustainable work culture (Kellner, 2017).

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Performance Management Appraisals- it is the other technique which can be applied
in the companies in the retail sector for retaining the different employees. Effective
performance appraisal system is important for the businesses which helps them in aligning
the employees, resources as well as systems to meet the different strategic objectives
sustainably. The companies which are capable of getting the performance management right
becomes formidable competitive machines that will be effective in generating high level of
effectiveness along with uniformity in the process of gaining competitiveness (D’Netto et al.,
2014).
The talented as well as skilled workforce is the lifeline of each and every company
that will be capable of accelerating the entire growth of company and there is high level of
importance of having the right people (Gan & Yusof, 2019). The devising of the innovative
business models can be implemented as well as incorporated by the companies for improving
the effectiveness for investing the time and resources in software related to performance
management. Effective performance management system is essential for the business as it
helps them in aligning the employees, resources along with systems to meet the strategic
objectives. The different companies which get the performance management right become the
formidable competitive machines (Gordon, 2017).

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Proper Programs Related to Mentorship- It is the fourth theme which is required to be
implemented by the retail sectors in the entire market as the proper training and development
of the employees is the critical element which needs to be implemented for the balanced
growth of the company and the employees as a whole. As stated by You and Barry (2016),
the retail sector mainly depends on dealing with variety of individuals who are belonging
from different communities. The proper training and development aspects will be capable of
generating high effectiveness and efficiency in the offering of the fresh viewpoints to the
experienced ones (Kossivi, Xu & Kalgora, 2016).
Mentoring the different promising employees can be able to benefit them which will
be effective in generating high level of productivity in the market successfully. Mentoring
means that there should be taking of the personal interest among the different employees
which will be effective in incorporating the growth of the company successfully (Rotich,
2015). There can be inclusion of the on and off the job training procedures which can be
followed by the employees for gaining high level of knowledge in developing relationships
and understanding the different tasks successfully. The identification of skills can be
developed or improved upon as it will be capable of improving the prospects of the
employees in giving their best (Markey, McIvor & Wright, 2016).