The Indian organised retail sector is worried over the lack of talent, threat of poaching, unavailability of experienced manpower and stressful work environment, says a study undertaken jointly by Deloitte Touche Tohmatsu India and the Retailer’s Association of India .
Although attraction and retention of talent continue to be concerns, Indian retailers have developed strategies to overcome these issues in critical work segments like merchandising and brand management. The study says retail companies should focus on developing a talent management strategy influencing business strategy.
In terms of compensation, operations scored highest in fixed pay component followed by business development, sales and merchandising. The annual increment the retailers doled out to their employees in 2010-11 was around 10 per cent.
The study also highlighted that Indian retailers follow a similar variable pay policy for their corporate and frontline staff. While most retailers ensure that organization performance defines the payout, calculating individual performance at the store level is quite difficult. However, the retailers are in the process of developing a robust performance management system.
Most of the retailers are still following traditional organisational principles and rarely experimenting with newer practices like cross-functional teams or mobile workforce which can be rotated across functions.
The study shows that learning and development are critical areas of operations for retail companies. While most of the Indian retailers have a well-staffed learning and development function, there is significant scope for improvement in areas like adopting newer learning technologies, infrastructure and vendor management.
The study was conducted amongst twelve large retailers in India in which the human capital practices of the companies were studied and benchmarked against global biggies.
Source : Economic Times