By definition, retail is the sector of activity that is responsible for delivering mass products to the final consumer. The recently concluded health emergency caused a change in the new purchasing modalities of its public and forced retail to adapt in order to survive.
In fact, the sector stood out for its agility to transform itself, which can be explained by its own way of operating: “It is an item that tends to constantly evolve as a result of changes in market needs,” says the report “El Sector Retail in Uruguay” carried out by the organization Great Place To Work (GPTW).
In recent years, retail has migrated towards e-commerce. In addition to the classic physical stores, companies that sell in a hybrid way appeared —on-site and on the web—, and also those that are exclusively for sale online.
Although broadly the transformation seems to be focused on the needs of consumers, the GPTW study shows that it also implies a change in the strategies of companies to take care of their own people. This is essential in retail because, according to the consultant, compared to employees in other areas that make up the best places to work in Uruguay 2022, those in retail are more vulnerable.
“It is key that companies demonstrate that they have the support of their people as a priority,” says “The Retail Sector in Uruguay.”
Although the trends for human resource management during the pandemic —for example, telecommuting— were not applicable to this sector due to the characteristics of their work, companies found a way to take care of their workers and, in addition, keep welfare.
In this sense, retail firms managed to design policies and practices with a high level of contingency that would allow them to attend to a wide variety of cases. These offers are also accompanied by leaders who know how to attend to individualities.
According to GPTW, effective leadership is made up of strategic leadership and proximity leadership. The first aims to connect the teams with the company’s results, and it is for this reason that retail companies stand out. The second refers to the trust between supervisor and subordinate to empower the latter.
“Those who achieve a high level of connection between their teams and the results and objectives of the business, generate work environments that facilitate interpersonal relationships,” says the GPTW study.
This benefits retail companies because, those that generated a competitive advantage over their competition, did so thanks to the fact that they have collaborators who are committed because they live an excellent work experience on a daily basis.
Retail: a good place to work according to employees
Faced with the statement: “All things considered, I would say this is a great place to work”, eight out of 10 GPTW respondents said yes, which shows the quality of culture achieved through leadership.
In addition, 77% of employees said: “The things that should happen in a great place to work, often or almost always happen.” This includes variables such as camaraderie, communication, leadership, resources, interpersonal relationships, remuneration, among others.
For the preparation of the report, GPTW prepared a benchmark with 7 thousand employees of 15 retail companies in the local Uruguayan market. The responses received were 91%, approximately 6,400 workers.
Four ways to improve retention in retail
Undoubtedly, forming an organizational culture focused on achieving the company’s objectives by improving the employee’s work experience is key to the success of companies in the retail sector.
Although there is a majority that is satisfied with this, there is still a percentage to capture. In this line, GPTW raised four keys to improve employee retention in the sector: payment, power, purpose and protection.
Payment is the biggest challenge and not only in the retail sector. Therefore, companies have to review salaries and offer bonuses both to motivate staff and to show that they are valued. Protection is in the same direction. Today, employees in the retail sector are vulnerable, so companies have to show that the care and support of their people is a priority.
When it comes to power, employees appreciate the active involvement of employees at all levels in decision making. Finally, work within the industry can feel devoid of purpose, especially if employees are selling a product without a clear social benefit. Therefore, companies have to work so that there is a clear connection between their purpose and the work of employees.
