Originally Posted by my colleague Joyce Maroney at the Workforce Institute:
Today’s guest post is by our board member, Mark Wales. Mark is an expert in workforce management for the retail industry. Here he shares his perspective on how retailers and services providers are looking to their workforce as a strategic asset and not just an expense to be minimised.
Recently at an International Workforce Management Summit I witnessed the seismic shift in how workforce management is perceived and how it has grown in strategic importance to retailers and service providers. Ten years ago it was IT and HR who attended these events, now it was exclusively Operations. Why the dramatic change and what does it mean for the workforce?
The reason for the change is the rising strategic value of employees. While many retailers and service providers may see labour as the largest controllable cost, many have turned the corner and realized that their brand, their business model, and their profitability depend on how wisely they invest in their employees.
It is essential to pay your employees in a timely and accurate manner with appropriate controls and visibility. That, however, is not enough. It does not maximise the full potential of your employees, your customers, or your profitability. You will fail to recognise the value of many facets of employee experience, customer experience and productivity. To raise the strategic importance of workforce management you must draw a direct link between investing in the employee, impacting the customer experience and driving profitability.
Forward thinking retailers and service providers are building a new generation Operations discipline. They envision a holistic multidisciplinary approach to workforce management that is centred on productivity and optimisation of both the employee and customer experience. You will see this impacting hiring, training, team management, service design, organisational responsibilities, and decision making. The changes may seem subtle and evolutionary at first, but they have the potential to radically impact company performance over time.
Aberdeen Group: The State of the Workforce in Retail – Taking A Global View