Thursday, April 25, 2024

Advertisement
Wanted: Service providers in retail skills training?

By N Jayalakshmi | February 22, 2023

People/manpower and skills training is likely to become another key area of investment in retail even as brands continue to expand in the omnichannel/hybrid mode and customer experience continues to get expanded in its scope.  

A great-looking store with all the right elements in place - chic design, elegant lighting, phygital fit-outs, smart communications, etc. -  could still fall short of delivering the desired experience if it lacks that most crucial element - the human touch. The importance of people skills cannot be overlooked in any industry, irrespective of its nature. And this has seen a rise in demand for training at many levels. A look at the retail jobs scenario throws more light on the need for training in this industry.   

The retail job conundrum 

According to a Forbes report of November 2022, while retail job openings were up nearly 40% in December 2021 over 2019 levels, the situation had reversed in 2022. Walmart reportedly cut its seasonal hiring plans from 170,000 in 2021 to 40,000 in 2022, according to Coresight Research, while Amazon announced layoffs, affecting over 10,000 employees from retail operations and divisions.

The situation in India has not been very different. According to a Business Standard report, India saw a de-growth of 11.8 per cent in retail sector jobs from August 2021 to August 2022. Most of the reasons have to do with Covid and its aftermath. But for a people centric, customer facing industry like retail, it poses a huge challenge. As Deloitte’s Rod Sides says, as quoted in the Forbes article, “Retailers are already running fairly lean. How can they deliver the customer service promised and do it cost-effectively with even fewer people? When customers are unhappy in the store, they go home and order it online.”

Retail training service providers 

Well, the challenge essentially seems to lie in finding, grooming and retaining the right people for the right job. And this is where the need for training as a service comes in. Many industry experts believe retailers have to explore different outsourced business models and tap the gig-labor force to manage their manpower challenge.

While some retail functions are already being outsourced, something like training can possibly do with more service models. Recently, retail brands such as Infiniti Retail Limited (Croma), Metro Brands, Pepe Jeans India and Ferns N Petals had on-boarded TeamLease Degree Apprenticeship (TLDA) for training their workforce.

Through the partnership, TLDA would train 6,500 apprentices, with both domain competencies and behavioural skill sets, to prepare them for future job roles.

Dhriti Prasanna, Business Head, TeamLease Dhriti Prasanna Mahanta, Business Head, TeamLease Degree Apprenticeship, says while speaking to Retail4Growth about it, “Hiring apprentices is always a challenge for the retail industry, because of its dynamic nature. The attrition rate is also high. We realized in the last 7-8 years that counselling is very important when a retail company hires an apprentice, who should be made aware of his or her growth path. One great example is Jubilant Foodworks, with whom we work. The moment they hire an apprentice, they make sure the apprentices know the roadmap and get clarity on where they are headed professionally. I am proud to share that one of the apprentices there is now a store manager for one of the international locations.”

As part of its program, TeamLease offers degree-linked apprentice programs that empower the students to build new skills and receive additional credits whilst they earn a stipend. The Degree Apprenticeship program has been curated under the guidelines of the New Education Policy and will provide candidates with a combination of academic and work-based learning. Another company, PayNearby, recently collaborated with TRRAIN (Trust for Retailers and Retail Associates of India) Circle to provide digital upskilling tools to retailers.

Anand Kumar Bajaj, Founder & CEOAs Anand Kumar Bajaj, Founder & CEO, PayNearby had remarked, “Retailers are the very core of a business ecosystem and it is important for them to have all the necessary knowledge and skills to make their work easy and enhance customer engagement.”

Retail jobs of the future 

Many of these training initiatives are driven by the changing nature of retail and consumer behaviour and thus, digital skills are an important component there. As Dhriti Prasanna says, “Some jobs will continue to remain, even though many retail brands have moved to the hybrid model of online + offline. But some of the key new jobs would be in areas like back-end warehousing, packaging, etc. Also, going forward, a lot of digital education, digital certifications and digital skilling will be required.”

Category based training 

Angelique Dhama, CEO, Obeetee Carpets RetailThere is also perhaps a need for category based training in retail. As Angelique Dhama, CEO, Obeetee Carpets Retail, recently told Retail4Growth,  while speaking about the key challenges in store roll-outs today, “The biggest challenge is finding the right people to manage the stores. We are very particular about the people we want.” As Angelique addedacademies or institutes that train people for special retail categories like carpets would be most welcome. 

Dhriti Prasanna agrees, “I can relate to the need for category based skills. You need people to have an understanding of what they are selling. For example, we work with an electronics retail company which insists on hiring engineers for their stores.” Essentially, as Dhirt points out, there are many layers of skill sets needed in retail, depending on the retail function and the product category.  

People and skill sets as key retail investment areas 

But, one thing is clear and it is that investing in the right people and skill sets will be as important as investing in any other retail service or solution. As Dhriti points out, “The retail industry is going to create a lot of jobs. Apart from the large enterprises, which will continue investing in people, a lot of startups are also coming in today. So there are many opportunities for the Indian youth to become employable in the retail industry, especially as more and more retail companies embrace the hybrid model.”  

He adds, summing up the need for quick upskilling in retail, “Today, given the cost pressures in retail, especially in offline retail, there is a big need for people who can become productive in a short span of time.” Another reason that points to the need for focused skills training that can help enhance customer experience and drive sales for a retail brand. 

 

Advertisement

Comments

Related Viewpoints

Are the shifting dynamics in FMCG space impacting the POP Industry?

Will brick & mortar stores of the future be vastly different?

Can sustainable packaging become an integral part of retail operations?

Advertisement
Advertisement
Have You Say
Advertisement
Resource
Follow Us On
Advertisement