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How Smaller Retailers Can Use Technology to Compensate for Labor Shortages
By George Pepes , APAC Vertical Solutions Lead , Healthcare and Retail , Zebra Technologies
In today ’ s retail landscape , merchants commonly face challenges like labor shortages or unexpected employee illness . The impact of such issues on smaller retailers is amplified , as closing their doors for even a brief period can impact revenue drastically and challenge the loyalty of their customers who may then choose to shop elsewhere .
Additionally , in the wake of the pandemic , many employees are rethinking their lives with nearly 18,000 workers across Asia Pacific ( including the Philippines ) indicating that the “ Great Resignation ” is set to continue , according to a survey by PWC .
As pointed out by Zebra ’ s Small and Medium Sized Business Industry Lead , Amanda Honig , technology is key to overcoming workforce challenges . Retail-ready solutions are instrumental in training new associates faster and encouraging upskilling of existing associates . These same solutions are essential in engaging and retaining younger employees – “ digital natives ” – as they make up an increasingly large percentage of the workforce .
Preparing for any reality
The retail sector has also been hit hard by the “ Great Resignation ,” with employees leaving jobs for higher wages , more flexibility , and other perks . Reducing turnover retains institutional knowledge and improves the overall strength of the team . It can also yield significant savings for merchants even though it requires upfront investments in technology and staffing .
In the Philippines , the average salary is $ 1,076,315 PHP per year ( about USD19,330 ), and filling up a position can take a while . What ’ s more , it takes an average of 12 weeks for a new employee to become productive on the job . Enterprise software applications running on mobile devices and powered by the intuitive and familiar Android™ operating system can be the solution to these challenges , as they are vital in speeding up new associate training and making managers and other staff members more accessible .
The devices can be loaded with video-on-demand software apps and other self-directed learning tools that support more effective on-the-job training . Instead of spending days shadowing colleagues , new hires can spend one day learning
9 the ropes and then become self-sufficient the next . If an associate forgets how to process payments , they can use their mobile device to access a step-by-step guide rather than consult a coworker .
Empowering employees
Opening late , closing early , or staying closed for an entire day may be the only choice when running a business with a small team that suddenly becomes unavailable to work that day due to illness , transportation issues or other uncontrollable factors . That is why smaller retailers must consider ways to manage and augment their workforce using technology .
The simple guidance provided via retail-ready mobility solutions enables easy upskilling and cross-training for current employees . With more training and powerful tools at their fingertips , employees can easily flex between different roles , from working stock in the backroom to delivering exceptional customer service on the floor . This helps fill scheduling vacancies and creates opportunities for associates to gain valuable experience . Additionally , workforce management software can give associates visibility into callouts if they want to pick up extra shifts and help keep the doors open . It can also allow them to submit time off requests and secure instant coverage , even last minute , without having to involve a manager . This helps reduce the risk of unexpected store closures due to staffing shortages .
Meeting the digital demands of workers
Developing a strong workforce for the future requires recruiting , empowering and retaining Millennial and Gen Z associates , the latter of which account for about 45 % of the Philippine population . In order to curb labor shortages , retailers should aim to meet the digital demands of these workers through technology .
Gen Z is the first generation of truly digital natives . As they enter the workforce , they bring new expectations around technology , which puts even more pressure on small businesses to invest in solutions that support a more connected and productive workplace .
Fortunately , with more devices in hand and streamlined communications , small business leaders can more effectively manage and mentor their younger workers , so they feel fully engaged and set up for success , which is key to securing employee loyalty .