Was there ever a moment when the concept of employment in retail suddenly changed? It certainly seems that way today; the end of Covid gave way to the Big Quit leaving retailers with the recognition that they may no longer have the culture, processes and technology in place to meet the needs of their employees.
The National Retail Federation’s Big Show in New York in January was a gift to retailers that are trying to build this culture for employee engagement, retention and success. The show featured a number of speakers that talked about recruitment and retention in the shadow of the Big Quit and dramatic changes in employee expectations.
US apparel retailer, Nordstrom has always had a reputation for understanding what its staff want, where they see themselves going, and adapting roles to enable them to go on the journey. Jessica Cloutier from Nordstrom said, “We ask staff to identify what success means for them and then help them get there.” Essential to that journey is self-expression; as Jordana Kammerud, Chief Human Resources Officer at Claire’s put it, “We need to build an environment where they feel they can be themselves.”
What seems clear is that employees will give their all if they feel they are getting 100% commitment in return. For instance, the knowledge staff bring to their roles in serving customers every day is invaluable and it can benefit the entire organisation if it is used to create a user-generated knowledge base or resource library like an employee Wikipedia with learnings, tips, and best practices is a huge untapped source of performance and productivity gain.
A key theme of the conference programme was the value of being able to align corporate objectives around social purpose, the future of the environment and inclusivity with those of employees who are also looking to find life purpose in their roles. At Wholefoods, this is about a shared love of food; it knows its best customers are shopping all the available channels, but also knows it can delight them by opening new stores. It talks about a place for customers and associates to celebrate food together.
For Mecca Mitchell from Burlington Stores, this is about selling the brand to employees, talking about the value that the retailer brings. She said, “Who you are is more than your name, your stock price, it’s about how you invest in the growth of the community, the same community that your staff come from, that your customers come from.”
Womens apparel retailer, Francesca’s for example built the concept of communities into its recent restructure, in order to transform the way it operates and communicates. As Kim Rogers, their Director of Boutique Operations, explained, “We know that by putting employee engagement at the centre of our business will really help with retention and recruiting.”
Francesca’s worked with a partner to create a community for each of its districts, to include everyone from stylists to managers to district team leaders, where they can ask questions, share pictures and successes. Key elements of this approach are empathy, inclusion and shared voices for greater employee empowerment, an approach that enables talent to develop and flourish.
For yoghurt maker Chobani, community is also about purpose, particularly for refugees who worry about where they’re going to live, where they’re going to work, where their children are going to go to school, and where they’re going to feel safe and accepted. Founder and Hamdi Ulukaya pointed out that a job can meet every one of these needs; he added, “”The minute the refugee has a job, that’s the minute they stop being a refugee. These are people who never give up.”
Retailers know full well that purpose is a key to giving great customer service. Neiman Marcus reported that just 2% of its customers are responsible for generating 40% of its revenues, which averages out at 25 shopping trips a year and a spend of $27,000, so the relationship between customers and associates is the key to converting the considered luxury purchaser. The company takes an integrated channel approach that incorporates physical, online and remote selling, so that associates are personally connected to their customers.
Operationalising these elements can be hard in large organisations. PepsiCo, for instance, recognises that retention starts with technology. Steven Williams, CEO of PepsiCo North America, explained that process-streamlining technologies helped to remove friction in simple processes. He gave a simple but effective example, by updating handheld devices staff can scan to order from the distribution centre rather than having to key details in manually.
What is very clear is that any retailer recognising the need to change the way they recruit and engage with their staff must put those staff on a near equal footing with the employer. Diversity and inclusion are no longer just about achieving a better recruitment balance for under-represented genders and ethnicities, but about demonstrating that retail can give meaningful purpose to all. NRF 2023 really brought these messages home.
