According to the National Retail Federation (NRF), retail supports over one in four U.S. jobs among 55 million workers. However, frontline workers in this industry often face challenges such as erratic schedules, repetitive tasks, and increasing violence and abuse. These workers, often unsung heroes, are essential for delivering the service and personalised attention customers expect, which is critical for creating positive in-store experiences and ensuring customer satisfaction and loyalty.
First impressions are more important than ever, as mistakes are now highly visible due to customers’ willingness to share their experiences widely and quickly. Engaged sales associates who act as brand ambassadors are vital for long-term success. To address this, many retailers are redesigning their recruitment and training processes, and reevaluating compensation, training, and mentorship programs. Despite these efforts, potential employees seek more than just a benefits package; they desire relationships built on personal fulfilment, individual agency, and trust.
With nearly nine out of ten retail executives worried about turnover, a fundamental rethink is needed. Fortunately, digital technologies offer new ways to attract and train employees while providing more interesting and rewarding jobs. Technology can significantly improve the retail work environment. For example, Amy Brar, vice president of user experience and product strategy at UKG, highlights how modern technology can make retailers great places to work by offering self-scheduling and gig platform-like flexibility, along with typical full- or part-time employment perks and benefits. Cloud-based digital platforms can streamline scheduling, time and attendance, frontline employee communication, and labour analytics. When combined with artificial intelligence, these platforms, such as UKG’s AI-powered Pro Workforce Management solution, enhance the employee experience by empowering people with schedule control and meeting business needs, thereby improving engagement and retention.
A holistic technology strategy can transform work by optimising and automating processes, sourcing and developing talent, and providing tools for exceptional, personalised customer experiences. Generative AI offers additional opportunities to unlock business value across various aspects, from inventory management to customer interaction. For instance, 75% of retail executives surveyed by Accenture see generative AI as crucial for revenue growth. Retailers can use AI-powered advisor tools to enhance customer experiences, like Best Buy’s new suite of Gen AI-enabled tools designed to help customer care agents provide better service over the phone. These AI tools offer real-time conversation assessments, relevant recommendations, and improved issue resolution.
Moreover, the metaverse presents innovative opportunities to attract a new generation of retail workers. Ikea, for instance, is offering paid co-worker positions on Roblox to promote its career opportunities and showcase the potential for growth within the company. This initiative allows a wide range of consumers to experience an Ikea career virtually.
As retailers prepare for key shopping periods, leveraging technology to create an attractive and supportive workplace is crucial for attracting and retaining retail workers.
By embracing technological advancements, retailers can address workforce challenges, enhance employee experiences, and ultimately improve customer service and satisfaction.
itim Group plc (LON:ITIM) is a SaaS-based technology company that enables store-based retailers to optimise their businesses to improve financial performance and effectively compete with online competitors. Itim adds retail value by helping multi-channel retailers optimise their business and their stores to improve financial performance and compete more effectively with the “Amazons”.
