Career advice, insights & tips for HR professionals
Retail sector. Reducing prices, reducing teams? 19/07/2010
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HR recruitment in the retail sector has changed dramatically since 2008. Retailers have been forced to re-invent their customer strategy which has led to a re-evalutaion of recruitment and HR. What are the current trends for retail in the wake of slashing prices and reducing teams?
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- Retail had to streamline due to recession
- Many retailers streamlined HR function
- Retail landscape for 2010
- What's the outlook for HR in retail?
Retail had to streamline due to recession
The middle of 2008 saw massive change for the retail industry, with the sector suffering a very public downturn and several iconic names disappearing from our high streets. With the need to cut costs, HR took on an even more significant role in retail. The immediate action taken by most retailers was to streamline operations, reduce staff costs and numbers across both head office and the shop floor.
Interim Performers has worked across all retail sectors for a number of years. The effects of the recession were evident throughout 2009. The assignments being requested focused on reducing the cost of the workforce so specialists in redundancy were frequently called for.
A number of retailers found more innovative ways to deal with cost cutting by introducing 9 day fortnights, reducing daily hours and offering unpaid sabbaticals, so we also saw an uplift in the request for interim specialists to renegotiate these new practises.
Many retailers streamlined HR function
With the emphasis shifting away from growth, retailers started examining how they were going to deliver the best service and experience to their customers and develop customer loyalty. We saw this translated into a call for interim talent specialists who could help identify the best people within the organisation and then replicate this either in other individuals in the organisation through training, or within any new hires coming into the business.
Some retailers opted for a more centralised HR function in order to cut costs, which led to a more specialised HR professional being requested. This led to fewer HR generalist roles in 2009. Also, as in many other sectors, HR were responsible for decreasing the size of their own teams so the landscape in 2009 did look considerably different to previous years.
Retail landscape for 2010
There are signs that this is now changing. Retailers are re-evaluating their HR strategies and seeing an opportunity to strengthen their workforce. With labour turnover significantly reduced, some retailers are seeing this stability as an opportunity to maintain sales with a more confident and knowledgeable workforce. This has meant that we at Interim Performers have seen an increase in learning and development assignments as companies look to improve levels of engagement and make employees more productive.
Recruitment is definitely back on the agenda with recruitment strategies being re-invigorated in order to attract the best talent and boost sales through establishing best practise of recruiting quality. Many retailers have started to focus on their employer branding and have requested specialist interim support to allow them to do this.
What's the outlook for HR in retail?
We mustn’t forget that there are also some clear winners throughout the recession. Fast food retailers, along with several other food retailers bucked the trend and many grew within their market. For these organisations, HR continued to play a significant role and had the resources to dedicate to more innovative initiatives such as apprentice schemes and academies to promote retail as a career.
Although 2010 has not been a rosy year so far for all retailers, HR definitely has a more positive role to play in comparison to 2009 with a significant increase in the number of interim assignments.
Nicola Allen, senior resourcing partner, Interim Performers
Nicola has been at Interim Performers for 6 years and is a senior consultant within the commercial interim HR practice. Within HR, Nicola specialises in the retail sector. With 5 years previous experience in recruitment, she was initially a merchandiser for Debenhams, Monsoon and Oasis.

