In a world of retail labour shortages, some brands stand out as an exception that let HR have a vision – even putting it in the driver’s seat of the organisation. At the RetailDetail HR & People Congress, Thomas Geuken, futurist and psychologist at the Copenhagen Institute for Future Studies (CIFS), discusses the challenges facing the retail industry, the impact of technology, and the evolving expectations of younger generations.
The retail industry’s image problem
Dutch research reveals that a whopping 65 % of all retail employees are considering leaving the industry. Can you provide some context on this trend?
T.G.: “This is a global phenomenon, not just limited to any specific region. For instance, in the United States, we saw a significant labour shortage in retail right after COVID-19. Despite pay raises of about 14 %, as many as 5.5 million retail positions remain unfilled. The wages are still considered low, making it hard for employees to get by, especially with inflation rates soaring to almost 10 % in some countries.
In the short term, the obvious answer is to increase pay and expand benefits – and also to be very transparent about it – but in the long term the attitude needs to shift as well. There is a cognitive bias against retail jobs: even HR retail directors often question why someone would want to work in a store, assuming there must be something wrong with them. This attitude needs to change if we want to make retail jobs more appealing.”
Could technology and digitisation make retail jobs more attractive, or are they merely a threat?
T.G.: “Young people today are brought up with technology all around them. They expect to work with tech devices. However, retail has not yet fully leveraged the opportunities that technology offers. By automating as much as possible, we can focus on enhancing customer experiences, making the job more engaging and enjoyable.
Checkout-free stores are examples of how technology can transform retail, although the human element should not be entirely eliminated. A new balance will be found, with less focus on repetitive tasks and more on digital skills. Additionally, creating a work environment that offers flexibility, transparency, and opportunities for personal growth is crucial.”
The expectations of the future
The expectations of younger generations do seem to differ from those of previous generations?
T.G.: “Why speak of young versus old? One of of the biggest debates in Scandinavia now is ageism: when we look at our population, it is clear we can no longer afford not to involve our ‘seniors’. Our focus on young people probably needs to be challenged. However, the younger generations are sometimes spearheading a Zeitgeist, fighting a rebellion against an unfairness that will benefit all of us.
As such, younger generations are more focused on having a good life and working on things they enjoy. They seek opportunities for growth and personal development. They also value meaningful and fun work environments. Retailers need to provide these opportunities to retain young talent. Companies like IKEA are already doing a lot in this area by incorporating playfulness and creating opportunities for friendships at work.”
Is there a way to win the raging ‘war for talent’?
T.G.: There certainly are clear winners: Apple Stores, for example, do not face labour shortages – they have people lining up to go work there. Why? They flipped the script on the image of dead-end retail jobs. Apple has created a highly competitive and attractive work environment. They have organised themselves so that the jobs appeal to younger generations. The brand itself is a significant draw, but they also offer a work culture that aligns with the values and expectations of young people today.”
HR in the driver’s seat
In today’s organisations, the HR department is in the driver’s seat, according to your report 38 HR Trends for the Future. How and why should HR take the lead?
T.G.: “After COVID-19, there was a significant shift in the role and significance of work, especially in the perception of knowledge workers. Organisations needed to adapt to both a new business environment on one hand and changed employee expectations on the other hand. And right in the middle, HR has the opportunity to create a visionary winning agenda of how to align these two in a meaningful, significant and value creating way. As it is all about people, it seems HR is in the perfect spot to actually take that driver’s seat position.
Right now, there is a vacuum within organisations, as the models and the images of the future we had, have become outdated. So we need new ideas and inspiration, and today HR holds the most important position in helping organisations and businesses transform into becoming more future-ready. People are on the agenda right now, so after marketing and finance, it is about time that HR became the department to create visions within organisations.”
Ready to find inspiration and vision for your HR department? Thomas Geuken will be speaking about the HR trends of the future at the RetailDetail HR & People Congress on 6 June in Antwerp, alongside keynote speakers from Delhaize, La Lorraine Bakery Group, Randstad and many more.
