Just when there’s a glimmer of hope in the Amazon-ification of retail—like the recent mixed-review launch in Australia—the online giant keeps expanding.6 Its Whole Foods purchase—which allows in-store pickup lockers for online orders— is shaking up the supermarket space. And predictions about an acquisition of Target or other department stores are growing.7 Meanwhile, online Amazon’s new Smart Locks for inside-home delivery may soon eliminate the fear of delivered‑package theft.
Yet despite a record number of store closures and the bankruptcies of institutions like Sears and Radio Shack, talent practices remain largely unchanged. Although Target and others have increased pay (see Section 3 above), the usual “take it or leave it” approach to low wages persists.8
"This illustrates traditional retailers’ dilemma. In the face of existential threats such as ecommerce and declining mall traffic, more generous pay might improve service. But it comes at the risk of spooking skeptical investors, who are already closely monitoring costs and margins."9—Bloomberg
The hyperconnected consumer demands a seamless shopping experience and excellent customer service, but the latter is hard to achieve when nearly half of front-end workers are part-time, making 32 percent less an hour than full timers who themselves haven’t had a raise in two years.10, 11
Changing staffing needs.
Because more customers are browsing, comparing, and buying products via smartphones, there’s a need for more effective supply chains and delivery processes. So while traditional retail lost 51,000 jobs from 2007 to 2016, 355,000 online shopping and warehousing ones were created, including roles picking and packing internet orders at fulfillment centers.12, 13
"People who operate sales registers are in less demand. People who can enhance the customer experience are needed in greater numbers. Those who can analyze data to anticipate product demand and move goods efficiently are becoming crucial."14—Marketplace.org
While the growing number of courier positions do not require extra training, most ecommerce and automated warehouse roles require a bachelor’s degree (78 percent and 53 percent, respectively).15 More skilled candidates have more options, of course. So retail HR teams must move beyond gig-economy thinking and a burn-and-turn approach to hiring to keep qualified folks from turning to other sectors.
"HR directors have got to think about a different kind of hiring model," says Michael Mandel of the Progressive Policy Institute. "Companies will get a chance to invest more in their workers as they move to the learning economy."16
Figure 1: What is the greatest challenge you face in providing an omnichannel experience for your customer?18
From the top down.
PricewaterhouseCoopers (PwC) rightly names talent as a top priority for retail, and HR-related issues also comprise half of the top six hindrances to providing an ideal omnichannel customer experience (see Figure 1). But the most crucial area is clearly upper management:
"For decades, retailers basically needed two executive skillsets: real estate, to manage a network of stores, and merchandising, to get product onto the shelves. Today, those skillsets need to be complemented with digital, omnichannel, supply chain and operations."17
As retailers ponder their C-suites’ readiness, more are implementing robust cloud HR systems. With a centralized view of all talent data, department leaders can identify skill gaps and use advanced recruiting functionality to fill them, all on a flexible infrastructure.
- David Fickling, “Amazon’s Australian Meteorite,” Bloomberg, December 5, 2017,
bloomberg.com/gadfly/articles/2017-12-05/amazon-s-australian-meteorite-spares-some-retail-species. - Marcia Layton Turner, “What's Amazon's Next Acquisition Target? Retail Experts Share Their Picks,” Forbes, January 8, 2018,
forbes.com/sites/marciaturner/2018/01/08/who-is-amazons-next-likely-acquisition-target-retail-experts-share-their-picks/#6f076e536186. - Simon Dowd, “HR in Retail: Five Trends HR Leaders Should Watch Out for in 2017,” HR Zone, November 18, 2016,
hrzone.com/engage/employees/hr-in-retail-5-trends-hr-leaders-should-watch-out-for-in-2017. - Lindsey Rupp and Sho Chandra, “Retailers’ Goal of Challenging Amazon Hindered by Labor Woes,” Bloomberg, December 6, 2017,
bloomberg.com/news/articles/2017-12-06/retail-labor-woes-hinder-efforts-to-build-customer-service-mecca. - Ibid.
- Ibid.
- Steve Bates, “Retail Revolution Challenges HR: While Stores Close, Growth in Ecommerce Creates New Positions,” Society for Human Resource Management, May 4, 2017,
shrm.org/resourcesandtools/hr-topics/talent-acquisition/pages/retail-revolution-challenges-hr.aspx. - Marielle Segarra, “Are fulfillment center jobs a good fit for laid-off retail workers?”, Marketplace.org, January 5, 2018,
marketplace.org/2018/01/05/business/are-fulfillment-center-jobs-good-fit-laid-retail-workers. - Ibid.
- “The Decline of Established American Retailing Threatens Jobs: A Love Affair with Shopping Has Gone Online,” The Economist, May 13, 2017,
economist.com/news/briefing/21721900-love-affair-shopping-has-gone-online-decline-established-american-retailing. - Steve Bates, “Retail Revolution Challenges HR: While Stores Close, Growth in Ecommerce Creates New Positions,” Society for Human Resource Management, May 4, 2017,
shrm.org/resourcesandtools/hr-topics/talent-acquisition/pages/retail-revolution-challenges-hr.aspx. - Ibid.
- “Total Retail 2017: 10 Retailer Investments for an Uncertain Future,” PwC, 2017,
pwc.com/gx/en/industries/assets/total-retail-2017.pdf.