Retail associates are a key differentiator for any retailer. Associates not only drive productivity and efficiency, but also customer engagement and convenience across multiple touchpoints. Whether it’s margin improvement, sales growth, or simply creating a positive store perception with a greeting or smile, associates are undeniably at the forefront of these initiatives.
As such, retention of trained associates and an ability to quickly cross-train them for multiple tasks are the key to creating a competitive edge. Shifting demographics of associates (increasingly GenZ), increases in minimum wages, and a rapidly evolving technology landscape have all contributed to the challenges that already exist in this area. On average, it takes 15-20% of the payroll to hire a new retail associate - including the cost of hiring, onboarding, training, and learning curve required to be productive in the role. This figure increases non-linearly for specialized or supervisory staff, leading to increased workloads across the organization.
Increased focus on associates The pandemic and its unanticipated lockdowns brought many issues to the forefront. Store closures, store hours, exposure to health risks, and the need to operate under supply shortages all forced retailers to depend more on their associates than systems and processes. This caused many big box retailers to shift their focus to reshaping the future through new store formats, talent strategies, and organization restructuring.
Workforce agility
From a long-term resiliency and cost-control perspective, retailers need to take a fresh look at how to create an agile workforce that will be better prepared to deal with the challenges — even the unexpected ones. Existing workforce models are based on specialization and replicability but the need of the hour is to create cross-functional resources with a specialization in select areas (what we call a T-shaped or pi-shaped model). While retailers are investing in the technology and infrastructure that will enable associates, they must look at overall engagement, technology-enabled “Byte-sized” training, instant feedback mechanisms, flexible labor models, and digital tools that will enable new experiences.
The concept of workforce agility is not new. Multiple reports and studies underline the need for and benefits of a more agile workforce. Almost 30% of the retail workforce works part-time (U.S. Bureau of Labor Statistics) with one in four citing retail as their first job. According to Aon’s COVID-19 Pulse Survey #5 (August 2020), nine out of 10 retailers believe that agility is critical to their futures. McKinsey’s latest research about agility shows that its advantages include a 90% quicker time to market, 30% higher productivity in frontline sales staff, and 130% increased time spent on value-adding activities such as innovation, customer interaction, and problem-solving. However, this requires sustained investments at scale, and competing priorities have always forced retailers to look at customer-focused initiatives rather than at associates.
We see technology as a crucial ingredient for agility in the workforce. Some key areas technology can help with include:
Wipro provides a complete list of “Workforce Agility” accelerators and tools, including best-in-class design, consulting, and implementation capabilities. We provide ready-made tools and frameworks including our “Connected Employee Platform”, “Coalesce” (an AR/VR-driven training solution) and Digital Experience Platform with its integration to conversation engines and AI-driven capabilities. We believe that technology is a great enabler for Workforce Agility that is capable of building a stronger, more efficient, and more resilient retail enterprise — ready to take on new challenges and drive profitable growth.
About the Author
Deviprasad Rambhatla
Senior Vice President of Retail, Services, Distribution and Transportation, Wipro
Deviprasad Rambhatla, who goes by Devi, leads Wipro’s Retail, Services, Distribution and Transportation business unit. His responsibilities include strategy, business growth, customer satisfaction, employee satisfaction, and P&L management.
Devi, a diehard Wiproite, is no stranger to the wonderful world of transportation and distribution. Devi’s career started at GE Transportation Systems, where he gained in-depth and personal experience in several US and Canadian railroads. In his role as Global Head of HTTP, Devi spearheaded Wipro’s 25% CAGR growth in this vertical by bringing in segment-wise focus in Travel, Transportation, Hospitality, and Public Sector.
Devi has been spearheading growth through blue ocean strategy, the opening up of white spaces, investing in and co-innovating IP/platforms, and harnessing the might of the new age of Wipro to meet the changing needs of customers. He has expanded Wipro’s repertoire of services from being cost-saving services to ones that significantly help customers bring in newer revenue streams and enhance customer experiences.
Devi holds a bachelor’s degree in computer science and systems engineering. He also attended the Wharton School of Business for his diploma in client engagement.