Nandini, armed with 25 years of work experience, is a double graduate with BSC and BA, also having a background in human resources management. She is a certified trainer, facilitator and a certified executive coach. Starting her career in teaching, she moved to retail operations and then to retail training, entering the HR space thereafter.
In a recent conversation with Women Entrepreneurs Review Magazine, Nandini talks about the HR perspective in the retail sector. She sheds light on building policies for a multi-generational workforce, addressing peak-lean periods in retail and fostering diversity. She shares words of caution for HR professionals to first understand the culture and business before creating practices.
Given the current retail landscape, how do you foresee the role of HR evolving to meet the challenges of a rapidly shifting market, particularly with the rise of e-commerce and digital transformation?
Retail is an ever-evolving industry, from mom-and-pop stores to large conglomerates today. With the E-commerce boom the job market has been disrupted due to greateropportunities for employees, higher salaries &the possibility of working at their own timings. Having said that ecommerce still contributes only about 20% of overall sales, with 80% of customers continuing to buy from brick-and-mortar stores.
The bigger challenge now lies in the front-end workforce. Customers today are more knowledgeable about products, pricing, and competitors, requiring retail staff to be equally informed. However, hiring and retaining quality staff is difficult due to competition, low wages, and changing career aspirations. Many traditional retail workers encourage their children to pursue more qualified jobs, leading to a shrinking pool of available workers in the retail sector. This lack of quality staff is a major concern, and one way to address it is through automation—reducing the need for front-line workers while investing in a smaller, well-paid, and capable team to handle customer service efficiently.
In a world where employee expectations are rapidly changing, how can HR leaders in the retail sector create people strategies that align with business goals while also catering to the diverse needs of a multi-generational workforce?
This is the decade where we have a baby boomer leading a business and Gen Z working at the front end. It’s a multi-generational workforce, and it's not easy because many decisions are made by baby boomers for Gen Z. This poses a challenge for HR to balance both. HR leaders need to be able to balance the expectations of Management & Employees & work on flexible policies that cater to Gen Z's preferenceswhile not disrupting the ethos of the biz. Today's youngsters aren’t excited by a typical nine-to-six job; they prefer flexible schedules. For instance, someone might start at 11 a.m., work until 8 p.m., or adjust their day to accommodate personal routines, like going to the gym, before continuing work later. The key is flexibility, as younger employees seek a balance between personal life and work.
Beyond flexible policies, it's crucial to create a culture where everyone coexists. This goes beyond generational differences and extends to gender community, cultural & other considerations. HR must foster an environment where people learn to coexist and avoid being judgmental. A strong organizational culture allows everyone to thrive while working toward a common goal. When HR, with support from senior leaders, cultivates this inclusive environment, managing a diverse workforce becomes easier, whether it involves generational, cultural, or gender differences.
Ultimately, this cultural shift aligns with business goals. By building a workforce that collaborates harmoniously, regardless of generational, cultural, or demographic distinctions, the organization is better positioned to achieve its objectives. The focus should remain on working together to achieve shared business goals, rather than on differences like age, gender, or background.
As the retail industry continues to globalize, what unique challenges do HR leaders face in managing a culturally diverse workforce? How can these challenges be turned into opportunities for innovation and growth?
We are a traditional Indian, family-run organization. Where many people have grown within the system and stayed for years, driven by loyalty. Over the last three years, we’ve brought in many new employees from diverse cultures and organizations to strengthen the company in line with business growth. For instance, we recently hired an expat to build our product portfolio and a data analytics expert who can help us to take decisions using data. Our CEO, though of Indian origin, is also an expat. The culture here was quite traditional, but we've made significant shifts.
When I joined three years ago, there were very few women in the organization. Today, 35% of our senior leadership is female, which we’re proud of. As we bring in people from different backgrounds, the existing employees can feel unsettled. It becomes important for leadership and HR to work together to sensitize both groups. It’s essential for the older employees to embrace change and for the newer employees to understand the company’s DNA, retain some old practices that are good while bringing in new practices. HR plays a critical role in guiding both sides.
Initially, it was challenging to bridge the gap between long-term employees and new hires. Over time, we’ve learned that it’s vital for HR and leadership to work closely to ensure everyone collaborates. The tenured employees understand the company culture deeply, while new hires bring fresh perspectives. Success lies in ensuring that both groups learn from each other, maintaining the old culture while integrating new practices. HR needs to help foster this balance and ensure we hire individuals who are adaptive and non-judgmental.
The retail industry often experiences seasonal fluctuations in demand, leading to varying workforce requirements. How can HR leaders effectively manage these fluctuations while maintaining employee morale and engagement?
One of the best practices we've implemented in my earlier organisation is managing manpower during lean and peak periods. For example, if a store requires 40 employees to handle traffic, sales, and overall costs during peak periods like Diwali, we ensure full staffing during that time. Attrition in front-end roles is high, around 40 to 60%. After Diwali, if five employees leave, we don't immediately replace them because it's a lean period. We only fill those vacancies if business demands increase again, such as during Christmas or New Year.
We also consider part-time models, but it's challenging in India due to compliance issues, payment structures, and integrating part-timers into the company culture. It's easier to manage in QSRs than in traditional retail. Students could be an option for part-time roles, but they are often unavailable during peak periods like Diwali or Christmas, and low pay can also be a deterrent.
In summary, we manage lean and peak periods by adjusting staffing based on business needs. During budgeting, businesses may account for extra hires during peak times, and this is a standard part of retail operations. It's not something that requires extra effort in terms of driving culture or engagement—it's built into our business plan.
In a highly competitive retail market, attracting top talent is a constant challenge. What innovative recruitment strategies can HR leaders adopt to attract candidates who are not only skilled but also aligned with the company’s culture and values?
The front end is a tough, tactical, and labour-intensive job. Despite being called customer service executives, the reality is that it's a demanding role. Every customer is different, and some can be rude. Many employees come from lower economic backgrounds, with challenging home environments, which makes the job even harder. The key to building a strong culture in the front end is to ignite passion for the brand by showing employees the bigger picture, offering growth opportunities, and career progression.
At Metro Brands, for instance, we don’t hire managers from outside. We promote from within, starting with stock boys and girls, who become salespeople, then assistant store managers, store managers, and area managers. This internal growth is a huge motivating factor for front-end employees. They typically focus on day-to-day survival, but when they join us, we show them a career path and a future. This creates a strong bond with the organization, encouraging them to deliver for the business while growing with us. When employees are proud of where they work, it fosters a positive culture and helps develop strong professionals and human beings
Considering the impact of AI and automation on the retail workforce, what role do you believe HR should play in balancing technological advancements with the need for human touch in customer service? How can HR ensure that employees are not left behind in this transition?
We began our AI journey about a year ago, focusing on using AI and machine learning to create models that can help us improve our same store growth for both front- end & back end, we have on trained staff leveraging AI for effectively delivery of their KPI’s.
With expansion standardization becomes important. However, with low bandwidth it is difficult to train all employees. Technology & AI play a crucial role here.
HR plays a crucial role in training staff on using AI to elevate customer interactions. However, AI is still expensive, and many retailers have not yet integrated it into their front-end services. It's essential to assess which touchpoints benefit from AI and which still require human interaction.
In India, customers often seek assistance from sales staff, especially in sectors like footwear, where the product's comfort, fit, and size are critical factors. While self-checkout options are suitable for some retail environments, footwear sales still rely heavily on human touchpoints. Yet, AI can support areas like checking product availability in other stores, reducing manual effort. The challenge for management is identifying where AI fits best and ensuring staff are trained to integrate it into their workflow without diminishing the customer experience. The goal is to enhance service without compromising on the personal touch that customers value.
Messages For Readers
Retail is all about detail. In HR, it’s crucial to understand the specifics of the business you're in. There’s no one-size-fits-all solution to problems. From my experience moving between organizations with different cultures and products, bringing practices from one company to another doesn’t always work. At Metro Brands, I had to immerse myself in the culture and business specifics before developing an HR strategy that would be effective.
HR professionals must take the time to understand the culture and business before creating practices. In retail, where 95% of the workforce is front-end, it’s important to stay connected with them and ensure policies suit both the front-line and corporate employees. Balancing both is key.
