RETAIL AND HUMAN RESOURCES: Main challenges facing human resources in retailing

May 30th 2023

HR in the retail sector faces major challenges. High turnover rates, changing market trends, the need for seasonal workers, employee training and a multitude of shops spread across different locations are just some of the complexities of retail.  

Here, Talent Search People takes a look at these challenges:  


  1. Recruiting and retaining talent   

It is very important for HR to be able to attract talented, customer-focused candidates who are flexible and adaptable to technological change. But above all, it is essential to retain candidates who are willing to work irregular hours, variable salaries and other conditions. That is why it is necessary to transmit attractive incentives and a comfortable working environment, as well as the values and culture of the company.    

Technology plays a key role in the stage of the employee life cycle, as it makes it possible to measure progress, detect problems and create action plans to overcome them.   


  1. Process automation   

We are living a constant technological transformation. The use of technologies that increase the efficiency of HR management processes will help managers and different areas to find their future employees.   

Talent management teams are faced with the challenge of digitising and automating their processes, allowing them to complete mechanical and administrative tasks in less time, allowing them to focus on other strategic tasks.    


  1. Measuring employee performance/work competencies.    

Measuring employee performance is essential in order to ensure that employees meet their objectives and contribute to the success of the business.    

Examples of performance measurement are performance appraisal, customer satisfaction and sales numbers. In retail, one of the most successful methods of evaluation is the 360-degree feedback method, whereby peers, subordinates, line managers, external customers and partners provide feedback on each employee's performance. It is key that this is done regularly to track progress and identify areas for improvement. This helps ensure that employees understand their strengths and weaknesses and can work to improve their performance.    

More and more companies now have digital tools to measure skills, as gathering data and drawing conclusions is not an easy task. That is why HR uses assessment software that automates much of this process.   


  1. Employee training   

Implementing a training plan for employees is key to enhancing their capabilities and improving their skills within an organisation. Although it is true that sometimes it can be complicated due to, for example, a high level of staff turnover and a high level of training, it can be difficult to implement a training plan for employees. 

This is where the HR team will have to make a special effort to find the right balance between training and recruitment. Whenever a new recruit is hired, investment must be made in training so that the employee can become a valuable member of the company in the shortest possible time. Consequently, special attention also needs to be paid to building the loyalty and commitment of this talent.    


  1. Employee motivation and satisfaction.    

Employee engagement and well-being is a cross-cutting business need that falls largely on the shoulders of HR. In addition to keeping customers satisfied, they bring other benefits such as increased productivity and efficiency, reduced turnover and absenteeism, and increased revenue.    

To monitor employee satisfaction, it is advisable to implement work climate surveys on a regular basis. With this information, HR will be able to implement preventive actions and measure their effects. It is important to show employees that they have a voice and that their concerns are relevant to the organisation.   

Steps to improve the company culture and employee experience will improve the engagement and well-being of the workforce as a whole, thereby reducing staff turnover in retail.   

Another way to increase job satisfaction is to ensure that employees receive competitive remuneration, as well as incentives and bonuses for excellent performance.    

Today we live in a time of change that is also reflected in organisational moves; companies are growing and flowing with the reality of our times. In this frenetic time, you need to rely on professionals who directly increase value and solve the problems that arise in one of the branches of Human Resources.   

Contact us today and meet our team specialising in Retail. 

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