| Macro Challenges | Micro challenges |
| Economic shifts: Global events, including geopolitical tensions, climate change, and inflation, have led to supply chain disruptions and a squeeze on spending. | Career progression: Limited development opportunities and unclear career paths are major deterrents for retail employees, leading to disengagement. |
| Technological evolution: Rapid advancements in technology demand a workforce skilled in new systems and processes, adding pressure on staff adaptability. | Work flexibility: The growing need for adaptable work arrangements - in terms of hours and location - remains unmet for many in the sector. |
| Market realities: The rise in online commerce and changing consumer behaviors are reshaping retail strategies, impacting traditional roles and expectations. | Recognition and trust: A lack of frequent, meaningful recognition and transparent communication from leadership has eroded trust and morale. |
The consequences of strained relationships
Two sets of challenges - macro and micro - are reshaping the employer-employee landscape:
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Who can make the change?
Strengthening the employer-employee bond in retail is a shared responsibility:
heading for a strategic reset
Recommendations for improvement
To effectively reset the employer-employee relationship in retail, here are actionable strategies informed by the latest industry insights:
1 Understand your workforce
Engage in a detailed analysis of your team's demographics, interests, and ambitions. Use these insights to tailor your Employee Value Proposition, guided by the seven key dimensions of retail employee experience identified by Lotis Blue Consulting. This strategy allows you to craft and incentivize tailored growth paths, maximizing individual productivity by aligning experiences with each employee's career stage and profile.
2 Jumpstart communication
Use dynamic and interactive tools, inspired by social platforms. PwC's 2022 HR Tech Survey highlights the importance of adopting technologies like mobile-first solutions, gamification, and enhanced leadership communication to drive tech adoption effectively. This strategy transforms workplace communication, making it as engaging as social media – a change that particularly resonates with Gen Z employees.
3 Foster two-way communication
Establish channels for employees to express ideas and concerns. This fosters a culture of transparency, crucial for effective onboarding, integration, and retention. Effective communication streamlines information flow and reduces misunderstandings, leading to greater overall efficiency.
4 Leverage leadership
Create platforms for executives to share the company's vision, fostering a sense of belonging and purpose. Echoing the World Economic Forum's insights, real loyalty stems from meaningful connections, not just financial perks. This strategy is crucial for engaging employees, especially the younger generation, ensuring they feel integral to the company's mission and become true brand advocates.
5 Recognition and rewards
Implement a system that not only acknowledges employee achievements for morale and retention but also inspires extra discretionary effort. According to Great Place to Work, when employees feel recognized, they're more likely to contribute beyond their usual responsibilities. This strategy transforms recognition from a basic retention tool into a powerful driver of exceptional employee contributions.
About Relesys
Established in 2014, Relesys is a trailblazer in retail technology, creating customized Communication & Performance solutions for some of the biggest global retail brands. Our platform seamlessly integrates internal communication, performance management, gamification, and training, uniquely tailored for each client.
Serving giants like Salling Group, Specsavers, and Mercedes, we empower over 17,000 stores across 84 countries in 21 languages. Headquartered in Copenhagen, Denmark, our specialists are committed to innovating the retail experience, championing efficiency and engagement in every Ab frontline worker's role.
