As per the Federation of Indian Chamber of Commerce and Industry (FICCI) the size of domestic retail sector is expected to more than double to $1.3 trillion by 2020. From an industry perspective it’s the growth in the organised retail which interest many. If overseas investment is allowed in this sector then it’ll further see a growth rate in excess of 20 per cent. This is great news for the employment industry in India.<\/em><\/p>\n <\/a><\/p>\n Many international retailers have already entered India and more are on the way. This calls for companies in the sector to realign their strategies so as to meet the changing market dynamics. Needless to say HR has an important role to play. So much that organisations today are more open to engage with HR consultants in achieving their growth strategy.<\/p>\n Direct customer interaction makes many HR challenges specific to the retail sector. So you have issues related to high employee turnover, diverse workforce, and seasonal demand. As the market size increases so would these challenges.<\/p>\n The biggest problem that many organisations face is hiring for the growth phase at lower levels. They have either downsized their front-end operations or employees have moved out. The onus on HR will be to recreate a skilled set of people for the job. More opportunities will come up for those who understand a customer centric business well. The commission-based remunerations are also making a comeback for some retailers.<\/p>\n Companies invest a lot in hiring people. This makes employee retention an important part of any HR strategy. The difficulty is in finding the right balance in any approach. Money excites freshers whereas experienced staff looks for stability and growth. Compensation benefits should also look at service period and resettlement and rehabilitation.<\/p>\n At the entry level there is a mad rush of incumbents pouring in from Tier 2 or Tier 3 cities to lap up opportunities in this sector, yet the stickiness level of these incumbents is very disheartening for the HR fraternity. The situation hence calls for a comprehensive and tightly packaged \u201cEmployee Engagement Frame Work\u201d, else sooner than later high attrition trends will lead to a work force which is high on cost yet low on both skill as well as motivation. Therefore, planning their recruitment numbers, the quintessential retail HR champion has to buckle down and prepare an ‘engagement strategy’ which is exciting, cost effective and at the same time smooth enough to dove-tails into the organisation’s succession planning agenda.<\/p>\n Recruitment companies are set to work more closely with clients for better results. The simple sourcing of candidates is likely to give way to a more inclusive approach involving tests like psychometric.<\/p>\n The demand for temporary sales staff is likely to continue. Companies usually rely on agencies to provide the required manpower for sudden surges in demand as during festival times. Instead a better approach would be to allocate a fixed number of working hours for the entire year; so the staff work longer during peak season and less during quieter times. This also helps get away with the need for seasonal staff.<\/p>\n