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National Skills Shortages Strategy Reducing Skills Needs in the Retail Industry Project

National Skills Shortages Strategy Integrated National Tourism and Hospitality Workforce Skills Development Project

National Skills Shortages Strategy

Reducing Skills Needs in the

Retail Industry Project

Final Report May 2009

National Skills Shortages Strategy

Reducing Skills Needs in the Retail Industry Project


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© 2009 NRA

All rights reserved. The content of this report represents our interpretation and analysis of information gathered from various sources, but is not guaranteed as to accuracy or completeness. Reproduction or disclosure in whole or in part to other parties, by any means whatsoever, shall be made only upon the written and express consent of the Department of Education, Employment and Workplace Relations and the National Retailers Association. This report has been produced with the assistance of funding from the Department of Education, Employment and Workplace Relations through the National Skills Shortages Strategy. However the views expressed in the report do not necessarily represent the views of the Minister for Education, Employment and Workplace Relations. This work was co-ordinated by Business Group Australia (BGA) with the Executive Summary and Elements 1 and 2 undertaken by BGA staff and expert contractors and Element 3 undertaken by NRA staff.


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Contents Executive Summary ............................................................................................................... 4

Background ........................................................................................................................... 7

The Retail Industry ............................................................................................................. 7

Project Outline .................................................................................................................... 7

Methodology ........................................................................................................................ 10

Industry Overview ................................................................................................................ 12

Skills shortage .................................................................................................................. 12

Labour shortage ............................................................................................................... 13

Challenges for the retail industry ...................................................................................... 14

Element 1: Proud to be Retail Concept ........................................................................... 19

Background ...................................................................................................................... 19

How the „Proud to be in Retail‟ concept came about ......................................................... 19

The Concept – the „Proud to be in Retail‟ Marketing Strategy ........................................... 20

How the concept was received by industry ....................................................................... 26

Next Steps ....................................................................................................................... 26

Recommendations ........................................................................................................... 30

Element 2: ........................................................................................................................... 31

Recruitment and Profiling Tool (including Personal Attributes) for the Retail Industry .......... 31

Background ...................................................................................................................... 31

Key Attributes for Overall Employability in the Retail Sector ............................................. 32

The Recruitment and Profiling Tool .................................................................................. 36

Next Steps ....................................................................................................................... 40

Element 3: Specific Retail Industry Qualifications ........................................................... 42

Background ...................................................................................................................... 42

Methodology..................................................................................................................... 42

Overall Findings ............................................................................................................... 43

Recommendations ........................................................................................................... 44

Key Findings ........................................................................................................................ 46

Conclusion ........................................................................................................................... 47


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Executive Summary This report outlines the findings of the National Skills Shortages Strategy Reducing Skills Needs in the Retail Industry Project. It highlights the results of research and extensive consultation undertaken in the retail industry throughout 2007 and 2008. The project proponent was the National Retail Association (NRA) and Business Group Australia (BGA) was subcontracted to provide overall coordination of the project, conduct the activities required for Elements One and Two and to provide final summaries at the conclusion of the project. Element Three was undertaken by NRA. The retail industry is experiencing a skills shortage which is one of the major impediments to business growth. In addition, there is also the more substantive challenge of the labour shortage. It is not just a matter of attracting skilled employees, it is about finding any employees at all. Some of the challenges being faced by the retail industry include: Wages; Lack of rewards; Inadequate training and career paths; Unrealistic recruitment criteria;

High staff turnover; Negative image of retail; Australia‟s attitude to service; and National approach by industry.

The National Skills Shortages Strategy Reducing Skills Needs in the Retail Industry Project is comprised of three elements: the development of a “Proud to be Retail” concept, the development of a recruitment and profiling tool for the retail industry and the development of specific retail industry qualifications for delicatessen managers and middle managers.

Element 1: ‘Proud to be Retail’ Concept The „Proud to be Retail‟ concept was developed for the Australian Chamber of Commerce and Industry (ACCI), the National Retail Association (NRA) and the Australian Retail Association (ARA). This concept became the „Star Retailer‟ Program which was to be a whole of industry approach that addressed underlying problems and covered all demographics at once. While the initial response to this program appeared to be promising, it was later ascertained that it did not have industry or employer support. Once it was conceded that the Star Retailer Programme was not suitable or supported by the retail industry, further work was undertaken to determine what strategy would be most suitable to address the range of issues being faced by the retail industry. This became the focus of Element One of this project. It was determined that if the retail sector was to strategically manage the labour and skills shortage it would need to address: the image of the industry as an employer; the needs of current staff to reduce turnover, including training; and how it will attract staff in the tightening labour market and who they will be. The following are the key recommendations to enable a strategic response to the skills and labour shortage being experienced in the industry: Agreement across the industry from the key organisations and major retailers to co-

operate on implementing a strategy to address the labour shortage; Adoption of a strategy to re-brand the industry as an employer of choice; Use of key messages to assist in reaching the target audiences of current staff,

potential staff, and the general public based on: - transferability, diversity, and flexibility.

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Investigate the development of a new skills framework based on personal attributes which will: - provide formal recognition for much of the informal training in the industry; - encourage further upskilling of staff; - present a more professional image of the industry; and - be a sought after qualification for current and potential employees.

Element 2: Recruitment and Profiling Tool (including Personal Attributes) for the Retail Industry The brief for this element of the project was to address the need for a Recruitment and Profile tool that could be customised specifically for the Retail Industry. This project aimed to determine the likely take-up of a customised Recruitment Tool by the retail industry, and to determine whether the inclusion of personal attributes was valuable and relevant. Feedback was sought through employer workshops. The final step was to identify associate teaching and assessment issues as appropriate, and describe the resources and their projected costs that would be required by industry for comprehensive implementation of the tool. It was ascertained that a recruitment tool tailored to meet the specific needs of the retail industry would greatly benefit in the matching up of employers to prospective employees. The key features and elements to be incorporated in a customised Recruitment Tool are outlined in a table included in the final report Recruitment and Profiling Tool for the Retail Industry. In addition, existing recruitment and profiling tools were examined and whether or not these could be customised for use in the retail industry. The following are the key recommendations from this element of the project: Undertake further consultation with retail employers to validate Personal Attributes,

including exploring appropriate formal recognition systems. Develop guidelines and supporting materials for employers. Undertake further work to effectively customise existing Recruitment and Profile Tools

to meet the recruitment and retention needs of the industry. Based on the decision to proceed with a Recruitment Tool, a strategic plan including

time frame and costs should be developed.

Element 3: Specific Retail Industry Qualifications Due to ongoing changes within the retail industry and a lack of participation in the national training system by some key areas of retailing, it was ascertained that it was necessary to gather and document evidence of the industry need and support for the customisation of qualification/s for delicatessen and middle managers. Research and industry consultation were utilised to identify the current level of need for the addition of new qualifications to be added to the Services Industry Retail Training Package (SIR07). The findings demonstrated that industry in general is currently satisfied with the number of qualifications within the current retail training package for middle managers. However, some areas requiring attention were identified. Findings in both areas were uniform and conclusive in the respect to the need for additional units of competency and not new qualifications. It is therefore recommended that the research and development of additional units of competency be undertaken to meet the evolving needs of industry.

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Some of the key recommendations include: For middle management and delicatessen outcomes, it is necessary to undertake more

holistic applications in identifying the content needs for relative performance and assessment criteria associated with the industry identified gaps.

Professional development for enterprises to understand the VET system and especially the flexibility that now exists within the SIR07 Training package needs to occur to ensure enterprises have the awareness and understanding of how the framework is able to be flexed to meet the needs of internal operations while still maintaining compliance.

Additionally, the Australian government must work closer with auditing bodies to ensure RTO's, especially Private RTO's, are offering RPL and RCC to each and every trainee undertaking indentured or non-indentured qualifications.

Further information relating to industry consultation and findings are provided in the final report for Element Three.

Key Findings The key findings from the different elements of the project are presented below. Analysis of Proud to be Retail Concept:

- Agreed need for image change of retail as an employment option; - Too heavily focused on retailers‟ needs at risk of disenfranchising potential

employees; - Potential to be viewed as a PR exercise without delivering significant change; and - Need to broaden target audience for recruitment.

Key issues identified:

- Skills/labour shortage will continue due to demographic changes and competition from other industries for workers, despite economic slowdown;

- Need to broaden recruitment approach to a wider potential workforce; and - Challenges for retail – lack of an industry wide approach, negative image, low

wages, people do not see it as a career, confusion over training and its relevance for some employees and employers.

Issues Paper encouraged debate and general acknowledgement of:

- need to address the issue from a whole of industry perspective, rather than competing against each other; and

- need to develop separate messages for a broader audience of potential employees. Main Themes:

- High level focus on benefits to employees; - Diversity of careers in retail; - Transferability of skills; - Opportunity to move from shop floor to owning own business or senior

management; and - Can easily move in and out of the industry depending on the time of your life:

student, post-study, return to work parent, mature age employee seeking part-time work.

Opportunity identified to develop framework incorporating personal attributes as

complementing the employability skills framework. This will provide an industry wide structure, assist in repositioning the industry as delivering benefits to the employee and provide a mechanism to encourage employees and employers to link up with RTO‟s.


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Background

The Retail Industry Retail is a people business. It is about people serving and responding to the needs of customers and to do that effectively and efficiently, the industry needs a large and trained workforce. The retail sector, like most industries, has been challenged by Australia‟s current skills shortage. More recently, this has extended to a general tightening of the labour market. Businesses regularly report being unable to pursue growth strategies due to an inability to find the necessary skilled or unskilled staff. In short, Australia is running out of workers. The primary factor behind the labour shortage is the ageing of the country‟s population, with those retiring from the workforce doing so at a greater rate than the younger generation replacing them. The impact of this demographic shift has been exacerbated by Australia‟s recent strong economic growth resulting in historically low levels of unemployment. Importantly, an expected easing of the pressure in the labour market due to the global financial crisis will only be a short term correction and will not alter the underlying issues of supply and demand for workers. The labour shortage presents a significant business risk for the retail sector. Retail is the country‟s largest employer, is labour intensive and has a high staff turnover, so it has significant exposure to any movement in the supply of labour. The industry has traditionally recruited young people, but there will be increasing competition for this segment of the market as other industries also look to this group to replace their older workforce.

Project Outline This report is the final report of the National Skills Shortages Strategy Reducing Skills Needs in the Retail Industry Project. It highlights the results of research and extensive consultation undertaken in the retail industry throughout 2007 and 2008. This report relates to the first stage of two possible projects. The first stage of the Reducing Skills Needs in the Retail Industry Project has four defined and consequential areas of activity: initial research; model or concept development; higher level verification and validation; and reporting. The project is comprised of three elements: the development of a “Proud to be Retail” concept, the development of a recruitment and profiling tool for the retail industry and the development of specific retail industry qualifications. A final report was developed for each of these elements addressing the requirements determined in the planning stage and signed off by the Project Steering Committee. Details of each element and its requirements are provided below. Element 1: Proud to be Retail Concept Identify support for, and test acceptance of, the Proud to be Retail concept and

appropriate associated products particularly how it will showcase “good practice” retail employers in training and skills development, to a range of recruitment target groups;

Investigate and provide recommendations about the capacity to synchronize the Proud

to be Retail concept with the Australian Apprenticeships marketing campaign;


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Conduct workshops (with small, medium and large retail employers and in metropolitan and regional centres) with at least 10 in each on the acceptance of the “Proud to be Retail” concept and the draft Framework;

Provide evidence, including workshop outcomes, of the likely difference or impact of the

“Proud to be Retailer” concept would have on recruitment and retention in the Industry; Develop a Framework for the “Proud to Be Retail” concept, including costings, for the

industry management of the initiative; and Detail specific recommendations and evidence to support work on a second project. Element 2: Recruitment and profiling tool (including personal attributes) for the

Retail Industry Document the outcomes of the consideration of the report on the Recruitment and

Profiling Tool (the Tool) for the 2007 NSSS Integrated National Tourism and Hospitality Workforce Skills Development Project (the Hospitality Industry Report);

Collaborate with Services Skills Australia and consult with DEWR, DEST and relevant

industry associations including Australian Retailers Association; Determine the likely take up of a customized Recruitment Tool by the Industry through

employer workshops; Provide evidence of the industry demand for inclusion in the Tool of Employability Skills

Framework Personal Attributes and identify associate teaching and assessment issues, where relevant;

Describe the resources, and their projected costs and development source, that will be

required by the industry for comprehensive implementation of the Tool; and Detail specific recommendations and evidence to support work on a second project. Element 3: Specific Retail Industry Qualifications Establish collaborative arrangements with Service Skills Australia for customising and

developing qualifications for delicatessen and retail middle managers; Gather and document evidence of the Industry need and support for qualification/s

customization for delicatessen and middle managers; Establish industry led and supported processes to undertake further work in

customizing and developing qualifications for the occupations of delicatessen and middle mangers; and

Detail specific recommendations and evidence to support work on a second project. The project proponent was the National Retail Association (NRA) and Business Group Australia (BGA) was subcontracted to provide overall coordination of the project, conduct the activities required for elements one and two and to provide final summaries at the conclusion of the project.


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A National Project Steering Committee was established at the beginning of the project and included representatives from industry, government and the consultants. The Steering Committee was chaired by an employer representative and met three times during the project. The objective of the first meeting held in December 2007 was to consider the project workplan and its implications for each agency, advise on possible measures for cooperation, and to confirm the Terms of Reference and membership. A second Steering Committee meeting was held in May 2008 via a teleconference. The key findings of the first reports for each of the three elements were discussed. The third and final Steering Committee meeting was held in August 2008 and the final consolidated report was discussed. This final report presents the overall findings from each of the three elements and provides recommendations for the retail industry to address the issue of skills needs now and into the future.


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Methodology The objective of this project was to develop a strategy for the retail sector to respond to the business challenge it faces from Australia‟s skills and labour shortage. As such, the project took two streams – one examining how the skills of the retail workforce could be improved and the second, looking at the broader issue of how the industry can compete for staff in an increasingly tight labour market. An employer roundtable with senior Human Resources Managers and Chief Executive Officers was held to seek input, ideas and confirm the objective. Desktop research was conducted to analyse what previous and current strategies the industry had developed in this area. A particular focus was given to work done by the Retail Industry Working Group under the National Industry Skills Initiative, and the Retail Industry Careers Marketing Plan, prepared for the Australian Chamber of Commerce and Industry, National Retail Association and Australian Retailers Association. An initial Issues Paper was formulated to provide a catalyst for further debate. It outlined the challenges including: the labour shortage, beyond just a skills shortage; the specific factors relating to retail; broadening the pool of potential employees; developing the right messages for the right audiences; and the need to gain industry co-operation and commitment. The Issues Paper was supported by a survey to ascertain current attitudes towards the labour and skills issue, from a diverse range of retail businesses, both in size and operations. Using the Issues Paper as the basis for discussion, a workshop was conducted with the National Retail Association in Sydney to draw out common acknowledgement and agreement on the key points. Participants were encouraged to put forward their views on how the industry could meet some of the challenges. A consistent theme emerged around the need to address the negative and often inaccurate perception of retail as a career. In response, three key messages were developed that reflected the positive aspects of retail and would underpin more specific messaging for particular target groups: transferability of skills; flexibility; and diversity. Interviews were conducted to develop case studies, providing real-life examples to support the messaging. These case studies are included as an appendix in the Proud to be in Retail – Forward Strategy report. Consultations were held with representatives from the Department of Education, Employment and Workplace Relations (DEEWR), in the areas of industry strategies, Vocational Education and Training (VET) and Careers Advice Australia, to ensure the themes were consistent and reflective of current policy. Feedback was also sought from the Australian Retailers Association and discussions held with the Australian National Retail Association. Whilst consistent and more targeted messaging would be a key to attracting a wider pool of people to retail, the need to upskill the industry needed to be addressed. The messaging would also be dismissed as simply a „PR stunt‟ if it was not supported by a tangible skills


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offering. Based on findings from discussions within the industry, feedback from the survey and research into the range of programmes currently available, it was concluded that any skills based initiatives needed to: be accessible to small and large retailers; complement but not replicate current programmes; encourage people to upskill and continue training; be cost effective; take advantage of the significant informal training which is currently provided but not

recognised; be attractive to the wider labour market; be considered from the perspective of the employee; enhance the professionalism of retail; and reflect the messaging around transferability, diversity and flexibility. Based on this criteria, the concept of developing a new framework to formally recognise the personal attributes of staff, or their „soft skills‟, was proposed. In addition, case studies, demonstrating the value of training and the opportunities a retail career provides were developed. This work has been brought together in this final report, incorporating the strategy and framework with recommendations for the retail industry to consider for implementation.


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Industry Overview

Skills shortage Successive surveys have identified a skills shortage as being one of the major impediments to business growth.1 Both government and industry have been involved in numerous programmes to address the issue, including the most recent investment by the Australian Government in committing $1.9 billion over next five years to create 630,000 training places, plus an additional investment of $187 million to create a further 56,000 places as part of the Government‟s Economic Security Strategy.2 3 From the retail perspective, there have been several key reports. The Balancing the Till Report, increasing profits and building a better workforce, compiled in 2002 by the Australian Retailers Association, the Department of Employment and Workplace Relations and the Equal Opportunity for Women in the Workplace Agency, highlighted the importance of a quality workforce for business success. 4 It encouraged retailers to better manage their workforce, improve training, and reward staff, as this will result in improved service, increased customer satisfaction and maximise profits. The Retail Industry Working Group was established as part of the National Industry Skills Initiative. It concluded in its 2003 Retail Industry Report, that the industry required two streams of skills – Employability Skills and Specific Skills5. Employability skills referred to skills which were needed as a basis from which a person could then go on to further qualifications. They centred on personal attributes such as loyalty, honesty, integrity, commitment, reliability, personal presentation, common sense, positive self esteem, sense of humour, motivation, adaptability, ability to deal with pressure and a balanced attitude to work and home life. The Specific Skills related to training in small business, management, product knowledge, IT and e-commerce and food handling. The report made a number of recommendations including encouraging the industry to examine more closely the people it recruits, further engage the industry with the VET system, have a greater focus on assisting small business, improve promotion of the industry to employees and enhance its image.

1 Australian Chamber of Commerce and Industry and SAI Global, , SAI Global – ACCI Survey of Investor

Confidence, July 2008 p3. 2 Department of Education, Employment and Workplace Relations, www.productivityplaces.deewr.gov.au

3 Rudd, K the Hon. Prime Minister, Gillard, J The Hon. Minister for Education, Employment and Workplace

Relations, Swan, W the Hon. Treasurer, 14 October 2008,Joint Media Release, „$187 million to double training

places and productivity‟ 4 Australian Retailers Association, Department of Employment and Workplace Relations, Equal Opportunity for

Women in the Workplace Agency, Balancing the till, increasing profits and building a better workforce, 2002,

p.1 5 Retail Industry Working Group, National Skills Initiative Retail Industry Report, 2003 p.v.


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Subsequently, the industry commissioned the Retail Industry Careers Marketing Plan in November 2005. The Plan addressed the need to improve the industry‟s image, which in part was generated by the lack of reward and training for staff – outside of the monetary considerations. In response, the report recommended the development of a Star Retailer Programme, in which businesses would commit to Reward, Train and Retain‟6 their staff. It was argued that this would reduce staff turnover, improve the skills within the industry and attract a higher quality of employee whilst re-making the industry‟s image through a public relations campaign. Each of these key reports contains a similar theme. The retail sector does not adequately invest in its current staff by providing training, recognition or rewards. As a consequence, it has the significant cost impacts of high staff turnover as people leave to find more satisfying work in other industries. In turn, this reinforces a negative image of the industry as an employer, making it even more difficult to attract qualified staff. Any attempt to reshape the industry‟s image must address the underlying problem of a lack of professionalism within the industry towards its management of staff. A simple publicity campaign will not be credible without demonstrated change. Importantly, as each of the reports touch on, the urgency for such an approach is increasing as the competition for staff intensifies.

Labour shortage The focus by the retail sector on addressing the skills shortage has in part been overtaken by the more substantive challenge of the labour shortage. It is not just a matter of attracting skilled employees, it is about finding any employees at all. The Australian Government‟s Workforce Tomorrow, adapting to a more diverse Australian labour market,7 report highlighted that the country faces a shortfall of 195,000 workers in the five years to 2010. The major factor in the declining supply of labour is the ageing of Australia‟s population. The impact of this trend has been exacerbated by the growth in the Australian economy in recent years. Demand for labour has sharply increased, with retail being one of the largest growth sectors and now employs more than 1.2 million workers.8 However, this trend has been temporarily halted due to the flow-on effects of the global financial crisis and the rise of the unemployment rate. Any rise in unemployment will hit the retail sector as those losing their jobs have less disposable income and those still in employment are inclined to be more cautious in their

6 Carlisle P and Lynch D, 2005 p.3

7 Department of Employment and Workplace Relations, Workforce Tomorrow, Adapting to a more diverse

Australian labour market, 2005, p3. 8 Australian Retailers Association, www.ara.org.au


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spending. A fall in consumer confidence and a flattening of retail trade figures has been experienced. However irrespective of this downturn, many retailers are proceeding with expansion plans and will be needing staff. For this reason, the predicted easing in the labour market from the global slowdown should be considered as a temporary correction from what is still an historically low level of unemployment. More importantly, the economic conditions do not alter the demographic shift in the ageing of the Australian workforce. Australia is still short of workers. For retail, the impact will be felt in two key ways. First, the industry will lose a percentage of its older workforce with 363,200 workers in retail aged over 45.9 Whilst that is not as large a percentage as some other industries, such as Manufacturing, Health and Community Services and Education, it is still significant when looking at the overall size of the number of staff involved. Second, will be the increased competition for young workers. The median age for retail workers is 30. The industry has traditionally recruited from the youth market with many people having their first experience in the workforce through retail. But with other industries losing their workforce to retirement, they will also be looking to this new workforce for replacements. Retail will find it more difficult to both recruit these new workers, as well as keep current staff, as other businesses start offering better deals as their need for staff intensifies.

Challenges for the retail industry An analysis must first be done of the specific characteristics of retail employment, the barriers to attracting and retaining staff identified, and the response strategy then formed off the basis of leveraging the industry‟s strength whilst mitigating its weaknesses. Wages Retail has the perception of being a low-paying job, which tarnishes the industry as a whole, irrespective of the reality in some areas of the business. There are several key reasons as to why this view prevails. Many retailers, particularly small businesses, only pay the award. Retail is highly competitive, with low margins, and is susceptible to quick changes in profits if there is a downturn in consumer spending. As such, many businesses seek to keep their labour costs as low as possible to enable them to manage through difficult times, whilst maximising profits during the growth periods.

9 Department of Employment and Workplace Relations 2005, p. 11


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The capacity of other industries to pay higher wages is having a flow-on effect in pushing up salaries across the board and leaving retail further behind. Sales assistant and shop managers make up over half the position in the retail industry with sales assistant being the largest single occupation in the country.10 As a percentage of the overall retail workforce, there is only a small number which are employed in senior positions which attract significant financial remuneration. A third of retail employees have completed Year 10, with only a quarter having qualifications post Year 12 as opposed to more than half in all other industries.11 The low pay rates are, in many instances, reflective of the low skills level in the industry. However with limited management positions, there is limited scope for someone to gain reward for improving their skills. Retail wages can also be perceived as being low because over half the retail workforce is part-time and so their take-home-pay is reflective of the shorter working hours. For a person trying to pay off a mortgage and raise a family, this is not an attractive employment structure. Most people‟s personal experience of retail employment is when they have their first job such as working in the local shop or as a checkout operator with a major supermarket chain. As a young employee, it is most likely they worked part-time and were paid a youth wage, so their pay packet may not have been substantial. Research has shown that early experience can affect their ongoing attitudes to the industry, that it is a job which is acceptable for extra money as a student, but inadequate in providing meaningful income on a long term basis.12 Compounding the low wages issue, has been the highly publicised examples of some employers underpaying staff. Notable cases such as Spotlight and Darrell Lea, during the debate around WorkChoices, sent a message to the community that retail employers will try to take advantage of their staff and pay them least as possible.13 Consequently, how the industry handles the current award modernisation process will again impact on its reputation and its attitudes towards wages. Lack of rewards Previous research has identified that the key priority for employees is to be valued14. This is not to discount the low wage issue, however the main reason for moving jobs is not the pay, but that they are dissatisfied with the work environment and in many cases that is because they believe they are not receiving adequate rewards or recognition for their work. It has not have been a monetary reward but an acknowledgement of the work they have done.

10

Retail Industry Working Group, 2003, p.9 11

Retail Industry Working Group, 2003, p.10 12

Australian Centre for Retail Studies, Shopfloor to Boardroom Project Summary, Monash University Business

and Economics, 2007 13

Workplace Ombudsman, 13 June 2008, $120,000 fine for chocolate company, Media Release 14

Carlisle P and Lynch D, 2005, Appendix 7. “What who wants”.


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Inadequate training and career paths Many retail employees end up leaving the industry because their job expectations do not match the reality of the position. Staff surveys indicate the promises of training and a career path which are outlined in job interviews, in many instances, do not eventuate.15 Where training is provided, it is largely done on an informal basis, which the employee interprets as being less costly for the employer, but leaves them without formal recognition of their skills. As a result, they quit, looking for employment which meets their needs and aspirations. Discussions held with a range of retailers, both large and small, confirm an increasing acknowledgement of the importance of training to retain and attract staff. However, the response and strategies adopted have been varied, and very often reflect the segmentation within the industry. Competition between the major retailers generates a degree of rivalry over training. Some will admit a reluctance to invest to heavily in staff training, out of the negative view that the best staff will then be poached. So why train someone if they are just going to leave and take their skills to their competitor? This attitude can also lead to training being internally focused for the specific needs of that employer, so the skills are less transferable and as such of less value to the employee beyond their present position. This is not to say that the major organisations are not investing in training – they are. As one human resources manager at a major retailer explained, you would have to be crazy not to have such systems in place. However overall the image of the industry from both staff and the public perception is that training is not a priority and where it is provided it meets the needs of the employers rather than being of long term value to the employee. The approach taken to training by the major employers is also much different from the smaller retailers. Aside the issues already raised, the major retailers do have significant training programmes in place and offer defined career paths for those who wish to progress through the industry. However, the resources required for training are not so easily available for the smaller retailers, with 52% of retailers having less than 20 employees.16 This poses a significant barrier to training, as they do not have additional staff to replace people when they take time off for training, margins are likely to be tighter and so cannot afford training costs and the business may be more specialised and so the relevance of outside training is questionable. Where businesses have indicated a desire to support staff extend their skills, they find the structure of the Vocational Education and Training system for retail too rigid, costly, and overburdened with compliance requirements. As a consequence, they are inclined to stay with in-house informal training.

15

Carlisle P and Lynch D, 2005 p.2 16

Australian Retail Association, www.ara.org.au


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Unrealistic recruitment criteria Ideally staff would meet minimum skills requirements and recruiters would only select people committed to the industry. However in a jobs market where unskilled workers are earning big money in the mining industry, the retail industry needs to be realistic in its expectations of the skills level of potential employees. By setting the recruitment criteria too high the industry runs the risk of cutting out a large proportion of the market and for those who do make the grade, not meeting their job expectations because the position has been oversold by the employer. In a tight labour market, it is the employee which has increasing power over where they want to work. They will seek out employers of choice, particularly young people who will want to work in areas of their personal interest. They want to see the employer taking an interest in their needs, rather than the traditional focus on the employer‟s. This is even more important when dealing with Generation Y employees who can have a different set of work expectations than previous employees. They want a job which aligns with their values systems, do not see themselves staying with one employer through their career, and will quickly leave if their expectations are not met.17 High staff turnover High staff turnover is considered by many in the retail sector an accepted part of the business and there are some valid reasons as to why this is the case. People aged 15-24 make up 40% of the workforce. This group is more likely to move jobs as they shift from study to work or test different employment opportunities before choosing a career. As mentioned, it is also a characteristic of Generation Y, that they are more willing to move from one position to another and do not feel obliged to stay with a single employer. In addition, almost half the retail workforce is part-time and so are not as financially committed to staying in a position, as compared with a full-time employee. To issues already mentioned, low wages and lack of training are also contributing factors. A survey by the Australian Institute of Management found that new challenge, at 73.1 percent moved jobs because they wanted a new challenge whilst 56.7 percent of staff left a position for better pay.18 Negative image of retail “If you can‟t get a real job, go to retail‟.19 That‟s the general perception of retail. The industry faces a massive image problem, where people see it as a job you do when you start out, it helps to pay your way when studying, but is not a long term career. As previously discussed, this attitude is reinforced by the fact that most people do start out on the lowest level in retail, whether it be the check-out operator at Woolworths or a sales assistant at Myer. Their view

17

Carlisle P and Lynch D, 2005 p.3 18

Drummond, A, May 27 2008, NSW has smallest payrises, The Daily Telegraph 19

Carlisle P and Lynch D, 2005 p.3


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of the industry is shaped from this perspective and does not reflect changes in the industry and the scope of careers which are available beyond the frontline counter. The negative public opinion held by family and friends can also influence those in the industry or considering such a career. The questions are asked - why would you want a career at a major supermarket chain after you have spent years studying at university? In a similar manner to the negative publicity the industry received over the workplace relations behaviour of some businesses, the inquiry into the grocery industry is putting the spotlight on the practices of the major retail chains. Community resentment over increased grocery prices and a perceived lack of competition to the detriment of the customer, does not enhance the industry‟s image. Simply ask the question - Do you want to work for a business which you think is ripping you and your family off? Australians’ attitude to service Retail is about responding to the needs of customers. However the concept of serving others runs counter to the egalitarianism of the Australian culture. Australia does not have a service industry or recognise it is a valuable profession as opposed to other countries such as the United States or many Asian countries. This makes presenting retail as a career to aspire to, is additionally difficult in the Australian context. National approach The retail industry is extremely diverse in the type of businesses involved, the employment opportunities and the size of the organisations. This makes it more difficult to garner the industry together to address an issue from a national perspective. The interests of small businesses so often will run counter to the positions taken by the major retailers. The competitiveness of the industry also has businesses looking inward, rather than seeking opportunities to work together for the benefit of the industry as a whole. Reflective of this divergence of interests, is the number of organisations which represent the retail sector. The impression then is of an industry which is divisive and lacks strategic direction and a professional outlook.


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Element 1: Proud to be Retail Concept

Background The brief for this component of the project was to identify support for, and test acceptance of, the „Proud to be in Retail‟ concept and appropriate associated products. This included how the concept would showcase “good practice” retail employers in training and skills development to a range of recruitment target groups. It was important not to duplicate efforts and any marketing campaigns developed as part of this concept would need to be synchronised with existing Australian Apprenticeships marketing campaigns. Workshops were held with small, medium and large retail employers and in metropolitan and regional centres (minimum 10 participants) on the acceptance of the “Proud to be Retail” concept and the draft Framework. Evidence, including workshop outcomes, of the likely difference or impact of the “Proud to be Retailer” concept would have on recruitment and retention in the industry was presented. Specific recommendations and evidence to support work on a second project were also to be provided. The following section provides some background information on the Proud to be Retail concept and its associated framework as outlined in the Retail Industry Careers Marketing Strategy.

How the ‘Proud to be in Retail’ concept came about It was ascertained that a cultural shift was needed in the retail industry and the only way to address skills shortages was with a strategic approach. This new approach would be owned by industry and built on „best practice‟ methodologies. It was necessary to address the poor image of the retail industry and the lack of pride felt by many employees. This resulted in the development of the Proud to be Retail concept which became known as the Star Retailer programme. This programme is outlined in detail in the Retail Industry Careers Marketing Plan. This plan was prepared for the Australian Chamber of Commerce and Industry, the National Retail Association and the Australian Retailers Association and was written by consultants from Three Bears Media. Prior to the development of the concept, research was conducted on the current situation of the retail industry and findings were backed up by existing research examined. In addition, a group of 62 retail industry employees, employers, association representatives and industry consultants was surveyed and results compiled. Focus groups were also conducted to discuss issues in more depth. The overall results, which supported the findings of Gantz Wiley, NRA and others, demonstrated that the retail industry was (and still is) experiencing a skills shortage due to low retention rates and inadequate training. It was expected that this would be exacerbated in following years by the emerging labour shortage. It was also found that the perception of the industry was not positive, although it should be noted that the perception often improves once an employee moves into the industry. The


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findings also demonstrate that more join the industry by accident than choice, a sign that retailing is not currently seen as an „industry of choice‟. It was also found that there were reasons for the higher than desired attrition rate (or what could be deemed natural) in the industry. At its simplest level, it was believed that the reason for the high attrition was because of this too common experience: 1. An Employee enters the industry „by accident‟, perhaps find they like the challenge and

contact with people and helping them…or they take the job while planning/studying for their „real career‟.

2. After some time they become disgruntled - they see no future, do not feel valued, and the job does not ultimately fulfil expectations.

3. Effective training is often not provided, and managers are often recruited from outside the industry (which is demoralising for ambitious employees).

4. With no hope for promotion or development, the employee leaves the industry seeking greener fields with greater opportunity elsewhere.

It was also found that, while churn will always be part of retailing, low retention rates currently being experienced were a direct consequence of the actions of retail employers and managers. It is a fact that the work environment has changed over the last 20 years, as have employee attitudes, expectations and tolerance levels. With low unemployment, employees (arguably) have more choices. For these reasons any solution must include a change of approach by employers and managers. It was believed that many employers/managers are well aware that this is the case, but are not always able (or willing) to address it – especially in the case of small business. While it has not been tested, anecdotal evidence would point to time pressures, a shortfall in necessary skills and (sometimes unwitting) lack of effort as being major obstacles. Finally it must be recognised that, since there is a cause, there are also solutions. To be effective, a cultural shift will be necessary. This requires a strategic approach, and it is acknowledge that this will not be easy or quick.

The Concept – the ‘Proud to be in Retail’ Marketing Strategy Based on this research and the conclusions drawn, two options were considered to solve the issues facing the retail industry: 1. Market to target employee demographics to encourage them to join and then stay in the

retailing industry; and 2. Find a whole of industry approach that addresses underlying problems and covers all

target demographics at once. It was the view of the project consultants that the second option would be most suitable as it was their view that there was already enough marketing material available to encourage entry into the industry. More importantly, there was agreement that the fundamental problem was not getting people into the industry (indeed one of the well-advertised strengths of retailing is its ease of entry); it is retaining the right ones. The second option would empower employers to solve their problems, change perceptions, and create a win-win for the industry. Project consultants proposed to attack the problem at what they believed are its roots – a shortage of pride, loyalty and feeling of value within and toward the industry. Experience showed that people who are proud of their work tend to like their work more, are more loyal


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and will stay longer and work more for an organisation‟s ideals and financial wellbeing. They also believed that this approach necessitates reciprocation. Employees need to be proud of their work and develop loyalty to their company. Employers need to express pride and value their staff to gain their loyalty. Therefore a strategic marketing strategy aimed at lifting this „value set‟ in the retail industry was proposed, and it should be emphasised that although we also propose a new construct be developed to help effect this, we are proposing a marketing strategy and not more. The new construct is the „Star Retailer Programme‟, essentially a set of commitments made between an employer and employee to build pride, loyalty and value in organisations and the industry. From these commitments will flow more training and development to address the skills shortages, and higher retention to address the haemorrhaging of talent from the industry and shortage of reserves available for succession planning. It is this Star Retailer Programme, its benefits and how to engage with it, that are developed and promoted in the Retail Industry Careers Marketing Plan. The Star Retailer Programme Commitments The programme that was proposed was entitled the „Star Retailer Programme‟, essentially a set of commitments made between employer and employee to build pride, loyalty and value in organisations and the industry. From these commitments will flow more training and development to address the skills shortages, and higher retention to address the haemorrhaging of talent from the industry and shortage of reserves available for succession planning. The Retail Industry Careers Marketing Plan develops the Star Retailer Programme, its benefits and how to engage with it. The objective of the Star Retailer Programme was to encourage retailers to „Recruit‟ effectively then „Reward, Train and Retain‟ their staff. A set of „commitments‟ was established designed to: 1. reward and recognise good performance; 2. ensure training and development is provided to encourage career paths; and 3. take pride in their workforce (e.g. retaining them in difficult times), loyalty and pride is

built between employer and employee. It was envisaged that there would be a set of commitments for each of Reward, Train and Retain from which the Star Retailer chooses a subset that is suitable to them. A list of commitments that catered to the different needs of large and small businesses would be developed. The final list of commitments would be developed as a collaboration between industry representatives and business owners to determine what employers and employees can reasonably expect to commit to. The idea was to make the commitments achievable and beneficial. Pride is not gained by failing to reach a goal. However, it is also a „two way street‟. Employees are also expected to „buy-in‟ to the programme‟s values, to the benefit of employer, employee, organisation and ultimately the consumer, who can expect and appreciate above average service from a Star Retailer. The Star Retailer Programme was to be supported by a marketing strategy that would build pride in the industry based around a tangible and genuine programme. This would empower the entire industry (employers and employees) to resolve its issues. The marketing would


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also target consumers, who would be encouraged to shop at a Star Retailer and enjoy the benefits of „above average service‟. The key to the success of the Star Retailer Programme was to be ownership by the industry and the support of peak bodies endorsing its aims. Sign up to the Programme was to be voluntary, but given the issues facing the industry, it would make sense for retailers to join in. Once in, a Star Retailer was to aspire to a „code of pride‟ and be committed to Reward, Train and Retain its staff. The Programme was to be largely self-auditing, again employing the „pride‟ theme, through what is primarily an „honour system‟. The Star Retailer programme would be an opportunity for the Retail Industry to take control of its own destiny. In any case, all of the research to date points to the adoption of the programmes ideology as being necessary to solving retention and skills shortage problems. In fact, larger retailers have recognised this and are already implementing many of the ideas proposed in the Programme. As Star Retailers, members of the Retail Industry – large and small – would be able to build on existing „best practice‟ methodologies to increase pride in the industry and address the image issue, while keeping their workforce satisfied and increasing retention rates. Administration The programme would be administered by the retail associations, as part of member services. Included in the running costs of the programme, a Star Retailer Administrator would manage the database of Star Retailers for the association, and sign up new Star Retailers. Initially this would be time-consuming, though longer term it would probably be a part-time job. Auditing Compliance It would be an objective to keep the auditing of the Star Retailer Programme to a minimum – bearing in mind it was fundamentally intended to be a marketing strategy. Therefore the programme would be developed so that it could be self-audited, based on honour and pride. Advantages of the Star Retailer Programme The Star Retailer programme would address many of the current challenges identified in research undertaken. It would address key concerns of employees (and their reasons for leaving jobs and the industry) such as not enough training and development, not feeling valued or listened to and not being rewarded for working hard. It answers primary employer requirements, such as motivating employees to work more effectively and improve profits (through the reward scheme) and stay longer in their jobs. It would also provide a working basis by which employers and employees can build pride in their organisation, value the work achieved and create environments that breed loyalty and a common purpose. Supporting Organisations A key to the ultimate success of the Star Retailer Programme was considered to be the support of peak bodies, retail associations, large retailers and the Government. These groups would be needed in the development stages of the programme, to support the Initial Rollout and then in selling the benefits to industry.


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Ultimately, industry must embrace and own the concept for it to work, and these representative bodies would be vital in achieving the transition of ownership of the programme to industry. Marketing Products to Support the Star Retailer Programme It was suggested that a number of products be developed to support and market the Star Retailer Programme, which would in turn achieve the goals of the overall strategy – building pride, loyalty and value in the industry to increase retention rates and feed through to increased profitability. These marketing products include: 1. The Star Retailer Starter Pack

The Star Retailer Starter Pack would be developed to help induct retailers into the programme. It would be in simple language, with the aim of providing advice rather than rules and would differentiate between large and small retailers and would include: a. Star Retailer logo stickers for shopfront display („Proud to be a Star Retailer‟).

Each outlet would receive a number of stickers for their shopfront. b. Commitments/reporting requirements. This would be in the form of a booklet as

well as electronic versions. c. A training CD-ROM explaining the Programme. A video and PowerPoint

presentation explaining the Programme, with electronic version (PDF) of the same material for printing.

d. A profiling tool to help employers select suitable employees. Based on the Gantz Wiley research and developed by a psychologist/HR consultant in electronic form that is easily printed.

e. A Welcome certificate „Retail Industry Code of Pride‟. f. An employer guide to employing people – specifically young, mature age,

indigenous and disadvantaged. Electronic format for ease of printing. g. Packaging and postage for the Initial Rollout stage

2. A Website – www.starretailers.com.au

b. A portal which rates/ranks and links to websites that relate to careers and training in the industry.

c. Contains latest information about the industry, and potentially some case studies, handy advice etc

d. Has streaming video (optional) e. Administers the Star Retailer Programme (optional) f. Distribution point for parts or all of the Starter Pack (optional)

3. A TV and radio campaign

This would support the Star Retailer initiative and engage consumers with the message that they can expect superior service and product knowledge from a Star Retailer. Focus on Pride, Loyalty and Value. Potential Tagline – „Proud to be a (Star)Retailer‟. TV would be important for building the Star Retailer brand awareness via the logo. Radio could provide value-for-money coverage once the public is aware of the concept.

http://www.starretailers.com.au/


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4. Marketing collateral Designed to support the above products revolving around „Proud to be in Retail‟, including an assortment of Mugs, pens, stress balls (!) and other useful paraphernalia, the collateral would be used as giveaways to promote the programme, and also in the Star Retailer Starter Pack.

5. PR campaign Developed around the Star Retailer concept to assist in raising public awareness – promote especially through the retail associations, RTOs (who stand to benefit) large participating retailers and Services Skills Council.

The Marketing Plan The Star Retailer Programme was to be supported by a marketing strategy that would build pride in the industry based around a tangible and genuine programme. This would empower the entire industry (employers and employees) to resolve its issues. The marketing was also to target consumers, who will be encouraged to shop at a Star Retailer and enjoy the benefits of „above average service‟. The Marketing Plan consists of two phases. Phase One is developing the Star Retailer Programme and its supporting product suite. Phase Two is an initial rollout of around 250 outlets to test the products and results before a full-scale distribution rollout. Selling the Star Retailer Programme The critical element of the Marketing Plan was to be the „sell‟ of the concept to retailers and its consequent take-up. This has been identified as the largest challenge and key selling points were identified to assist with this task. Timelines The development of the Star Retailer Starter Pack, first stage website and advertisements described was to take approximately six months in total. A suggested timetable was developed. Budget and Funding Issues A budget was established for the Star Retailer Programme and was divided into a development budget to fully develop each product for Phase One of the Market Plan, ready for the Initial Rollout stage (including the production necessary to support 250 retailers), and a production budget to cover printing costs for the rollout stage. A third budget covering advertising media spend, PR and ongoing administration was also established and it was envisaged this would be funded by the programme itself via subscriptions. This would also cover costs associated with ongoing administration of the programme. It was ascertained that once initial marketing products to advertise and sell the Star Retailer Programme have been created, the programme could become self-funding through a sign-up fee and an annual company subscription. External funding sources would be sought to


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develop these materials, and initially set up the programme and the tools needed to administer it (e.g. database). Excess funds generated from the subscriptions could be used to fund activities such as media spend, PR and ongoing administration. Distribution Plan A Distribution Plan was established which covered the rollout of the Star Retailer Programme after the initial rollout. This included a feasibility study and a budget for the full suite of marketing materials and other supporting collateral. Testing the Concept The next step consisted of testing the Star Retailer concept. Retail employers/managers in Melbourne, Brisbane and Sydney were invited to a presentation of the Star Retailer concept. Four sessions were conducted in total (two in Melbourne) of between one and two hours Each with a total of 28 retailers. Attendees completed a questionnaire relating to the PowerPoint slides, and their written responses to the marketing strategy were tabulated. The first series of slide questions were designed as „control‟ questions to ensure that the analysis of the „current situation‟ in the industry is basically agreed upon. This was followed by key questions which aimed to determine whether the Star Retailer Programme could gain support overall. Next were a series of questions which related to the commitments idea and proposed Starter Pack. A challenge that emerged related to presenting the material in a short time was that many attendees wanted more specific details about how the programme would function and what its scope would be (including its future). Such queries were encouraging since they showed interest in the ideas. Overall, the results of these focus groups were promising. Despite the debate in Sydney, almost all participants in all groups were either neutral (which is to be expected at this early stage) or positive towards the concept, and showed willingness to support it. Some issues were commonly raised, primarily over the administration of the programme, auditing and what size/types of businesses would or would not sign up. All of the respondents fundamentally concurred with the consultant‟s view of the situation, the reasons for the situation, the causes behind these reasons, and who might be able to fix the situation (i.e. employers). This indicated that the industry may be ready to work toward solving its own issues. Clearly from the Sydney reaction, while recognition exists of where the responsibility lies, there is some work to be done to convince large and small retailers to work together (while still maintaining healthy competition) to improve the image of the whole industry. Question 10, concerning reasonable investment level for sign-up and ongoing subscription, was somewhat contentious. This gives hope that the programme would be able to fund itself provided enough organisations sign up. Clearly, more work needs to be done in establishing the correct rates. In terms of the discussions, it was encouraging that many of the audiences wanted to know exactly how the programme would work, what would be the contents of the Star Retailer Starter Packs, who might run it etc. This level of interest was interpreted as tacit support for the concept, although it was recognised that „selling‟ it in practice would be challenging. The tabulated responses and written comments also supported this conclusion.


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A detailed analysis of the questionnaire is provided as an appendix to the Retail Industry Careers Marketing Plan paper, which also includes feedback from focus group participants. Conclusion In general, consultants were pleased with the response to the Star Retailer concept and believed that the retail industry would support it. Given that it was a „new‟ approach to an „old problem‟, one would anticipate both enthusiasm and resistance to change, depending on an organisation‟s culture and individual‟s personality, and this has been expressed in this early stage of testing the concept. It was acknowledged that it would be a challenge to implement the programme, but feel that it is the solution with the greatest chance of success of those that have been considered. It was acknowledged that there would be resistance in some quarters, and that certainly not all companies would sign up. However by focussing on industry best practice, providing good business advice in straightforward terms in the Starter Pack, developing a simple but effective administration system, researching and learning other programmes that have been tried, developing solid marketing, gaining the support of industry leaders (and the Government), and keeping industry in the development loop, programme developers felt that the Star Retailer Programme had a real chance of succeeding.

How the concept was received by industry As outlined above, the „Proud to be in Retail‟ concept, which became the Star Retailer Programme set out in the Retail Industry Careers Marketing Plan, appeared to be supported by the members of the retail industry that participated in the focus groups. However, it was necessary to ascertain industry-wide support before drawing any further conclusions. The next step was to present the Retail Industry Careers Marketing Plan and its associated Star Retailers Programme to key retail industry stakeholders and peak industry associations. It was then ascertained that the programme did not have industry support and it was deemed that a broader campaign was necessary to address the issues being confronted by the retail industry. It also appeared that employers did not support the programme.

Next Steps Once it was conceded that the Star Retailer Programme was not suitable or supported by the retail industry, further work was undertaken to determine what strategy would be most suitable to address the range of issues being faced by the retail industry. This became the focus of this project, the findings of which are outlined below. Branding as a good employer What works in attracting and keeping good staff is the same principle on which the retail industry is based – give the customer what they want. It is the organisations which offer something the employee needs and values, which have the greatest success. Any strategy implemented by the retail industry must address the needs of the target audience. One of the key methods which organisations are using successfully is through their branding, as a business and as an employer. An organisation‟s role as a good employer as integral to its overall brand as a business. This includes offering rewards and additional services which respond to the needs of the target group.


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Partnerships with training providers to offer formal training opportunities demonstrates a commitment to improving the standards of service and enhances the professionalism of the industry. Training models in the industry are usually adaptable for different size businesses, cost effective and easily accessible on the internet. Passion for the product Small to medium size businesses have difficulty matching the training and human resources offered by the major retailers. Instead, it is more around the brand of the business and the products it sells which can be attractive to potential staff. This is even more relevant for the youth market. As an example a surf store can attract young people because they enjoy the sport and want to be involved in the industry. Having a passion for the product is also going to assist the employee to be a better sales person as they are an automatic advocate. Looking beyond the usual recruits With the youth market becoming more competitive, some businesses have already opted to look beyond this traditional market for employees. An example of this is targeting older employees. Not only does it have the advantage of being a less competitive market, it can also provide a marketing advantage, as the image of having staff with experience and knowledge is emphasised. Attracting the older employees also aligns with the ageing of the customer population. As the community ages, many customers will prefer to be served by someone closer to their own age, who understands their needs, rather than a young sales assistant to whom they have no connection. Another key source for potential employees are parents returning to work. Many of these people are now being required to undertake work activities if they are receiving income support from the Government. This gives these people an incentive to enter the workforce and so opens up a new labour source. Most seek part-time work so they can manage their family responsibilities and this matches with the work profile of the retail sector which is predominantly part-time employment. Those on disability payments are also an additional labour source, as some may be classified as being capable of working part-time but not a full-time basis. Opportunities If the retail sector is to strategically manage the labour and skills shortage it must address: the image of the industry as an employer; the needs of current staff to reduce turnover, including training; and how it will attract staff in the tightening labour market and who they will be. Raising the industry‟s image The reputation of the industry poses the greatest challenge and is the most important as it shapes all other factors in the way it affects the attitude of current employees and those considering a job in the industry. As many retailers have realised, their brand is integral to their success or failure in recruiting staff. This brand focus is just as relevant to how the industry as a whole attracts employees. It is about how the industry presents itself, what does it stand for, what values does it hold,


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what does it offer? At the moment, retail stands for low wages, no career and the job you have when you cannot get a real one. So how can this change? The first step is to gain agreement across the industry to address the problem. Brands require consistency of message and retail will need to focus on how it can achieve this. It is a significant challenge which will have to be driven by the key organisations and major employers. However a marketing and public relations campaign which tries to sell the message that retail is a great place to work will be greeted with cynicism from current employees and the general public. No sooner would an advertisement of a happy employee be aired, than many more disgruntled employees will refute it with personal experiences. Changing the industry‟s reputation will only occur if there is a real change in culture which is evident across the sector and is backed by commitments and action. The Star Retailer concept recommended in the Retail Industry Careers and Marketing Plan, attempted to take this approach by providing a training programme to support a major public relations campaign. 20 There is merit in having some sort of programme like this as a tangible product which can be easily promoted, particularly by smaller businesses and enables them to engage in a practical way. However, the concept was too heavily weighted towards the “spin” approach and ran the risk of being criticised as glossing over the human resources problems of the industry. It failed to adequately respond to the needs of staff, whilst promoting employers as the stars. The opportunity still exists to conduct a public relations programme which more accurately responds to the needs of staff and is backed by a product which employees will value and will see as an attractive reason for coming into retail. Building the framework A common theme from the research and reports is that staff would value greater recognition of their work. This is an issue for the retail sector because much of the training is done informally, people enter the industry will low skills and do not seek out to achieve further qualifications and small business are reluctant or cannot afford training costs. Any recognition system would have to take into account these barriers. Many employers are also aware of the value of the informal aspect of training and the opportunity which exists to recognise and reward this learning and experience. It is argued that skilling the workforce should take a broad approach as informal and formal approaches are increasingly important as the workforce ages.21 It must also be acknowledged that many employers, particularly the major retailers, do provide their own training or use other structured training courses. Any new skills programme

20

Carlisle P and Lynch D, 2005, p.3 21

Australian Industry Group, October/November 2007, Skilling the Existing Workforce, p.3


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must complement not duplicate what already exists. Indeed there is a risk that just another skills programme will get lost in the plethora of training schemes being promoted. The concept of focusing on the personal attributes, or are what are sometimes described as “soft skills”, will sit beneath the formal training system. This is dealt with in more detail under Element 2. Right messages for the new audience Based on the discussions with the industry, there are three key messages which could be used at all levels of the industry, to reflect the values employees are seeking and be supported through the development of a new skills tool. These are: Flexibility; Transferability; and Diversity. Flexibility accurately describes the working arrangements of many retailers, as most are based around part-time or casual work. This has always been attractive to students who are juggling work and study and will continue to be a positive message for this audience. However it can be an advantage for parents returning to work who are wanting positions which fit around their family role. In addition, people with a disability may also be well suited to the part-time positions. Retail can provide a career through the different stages of your working life. The transferability message responds to the desire of staff to attain skills which are transferable to their next position, whether it be in retail or another industry. For the young audience, this is an important criteria for employment. They are seeking a job which assists them on their career path. As already discussed, much of the training which occurs in the retail sector is informal and does not receive recognition. Highlighting the transferability of skills starts to bring some formal recognition to that hard work. They then value that employment because it has assisted them in the longer term. As an example, McDonalds does not promote its working environment as one where you learn how to make hamburgers, rather you gain experience in areas such as customer service, food handling, and team work. What they have gained is a solid working foundation from which they can stay within the business or transfer their skills to another career. Diversity is a common theme from retail employees. There is variety in employment in retail, particularly in small businesses where the owner is often the manager supported by few staff and each has to play an important role. This could range from customer service, to purchasing, administration, and marketing. In the large retailers, the range of positions is even greater and reflective of any major corporation which has significant resources in various departments from being on the shopfloor, through to finance, IT, design or buying. There is also the alternative of establishing your own retail business and being your own boss. Promoting the variety of career options will challenge the stereotype of retail as simply standing behind a counter or a cash register. Each of these key messages will resonate more strongly with one group of the target audience over another. It is important for the industry to accurately map which audience it is targeting, and select the more appropriate message. As an example, the transferability message could be re-worked for a mature audience, where the focus is on them attaining computer skills which they can apply, not in another position but in their personal life. Working in retail will provide them with the opportunity to keep in touch with technology – that may mean they can then email their grandchildren. It is a value for these employees which goes beyond the financial benefits of the employment.


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Retaining Staff The strategy to retain staff fits within the messaging approach and new personal skills framework, as raising the image of the industry will also encourage current staff to take greater pride in their job and be less reluctant to move. Whilst low wages are a negative for the industry, as already highlighted, this is not the key reason why people move jobs. Employees want a work/life balance, ongoing learning and development and to be in a working environment which is interesting and where there is honesty, respect and they are valued. Greater investment in training would assist in this regard, but the adoption of the personal skills framework is a step in the right direction. It will give people in the industry recognition for skills learnt and importantly it is a product which is designed for the needs of the employee not the employer. It will be the employee‟s reference demonstrating the transferability of the skills attained in retail to other positions, which supports the industry‟s new messaging as part of its image overhaul. Increasing staff retention is important, but will not be the entire solution to the long term labour shortage. There will be continuing pressure from other industries to attract retail workers and the industry will have to consider alternative labour sources to fill those positions.

Recommendations The following are the key recommendations to enable a strategic response to the skills and labour shortage being experienced in the industry: Agreement across the industry from the key organisations and major retailers to co-

operate on implementing a strategy to address the labour shortage; Adoption of a strategy to re-brand the industry as an employer of choice; Use of key messages to assist in reaching the target audiences of current staff,

potential staff, and the general public based on: - transferability, - diversity, and - flexibility.

Investigate the development of a new skills framework based on personal attributes which will: - provide formal recognition for much of the informal training in the industry; - encourage further upskilling of staff; - present a more professional image of the industry; and - be a sought after qualification for current and potential employees.

While the Star Retailer programme was not supported by industry, some aspects of it could be integrated into any future strategy developed for the retail industry.


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Element 2: Recruitment and Profiling Tool (including Personal Attributes) for the Retail Industry

Background The brief for this element of the project was to address the need for a Recruitment and Profile tool that could be customised specifically for the Retail Industry. The following section provides an overview of the final report which is structured around the following two key areas; 1. The Key Attributes for Overall Employability in the Retail Sector including the concept of

a skills framework based on personal attributes, or what are sometimes described as “soft skills”, which can sit beneath the formal training system and become a feature of employers recruitment and selection processes.

2. The Feasibility of a Recruitment and Profiling Tool taking the following into

consideration:

- The attributes of an effective and efficient tool to better target recruitment activities and improve employee retention;

- How the outcomes of the report on the Recruitment and Profiling Tool for the 2007 NSSS Integrated National Tourism and Hospitality Workforce Skills Development Project (the Hospitality Industry Report) can be customised for the Retail Industry;

- Analysis of the findings on currently available tools including the Chandler MacLeod ESP, the Harrison Innerview and ACER WPI Tool with a view to tailoring the current tools to the needs of the industry;

- Processes needed to customise and adapt an agreed Recruitment tool; and

- Processes that will need to be considered by the industry for the comprehensive implementation of the Tool.

This element also addresses one of the recommendations that came out of the „Proud to be Retail‟ concept (element one of this project) which was to investigate the development of a new skills framework based on personal attributes which will: provide formal recognition for much of the informal training in the industry; encourage further upskilling of staff; present a more professional image of the industry; and be a sought after qualification for current and potential employees. This project aimed to determine the likely take-up of a customised Recruitment Tool by the retail industry, and to determine whether the inclusion of personal attributes was valuable and relevant. Feedback was sought through employer workshops. The final step was to identify associate teaching and assessment issues as appropriate, and describe the resources and their projected costs that would be required by industry for comprehensive implementation of the tool.


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Key Attributes for Overall Employability in the Retail Sector Identified Skill Gaps and Needs The identification of skill gaps and needs in the retail industry is complex with the industry growing rapidly and consumers becoming more informed and more discerning about where they will spend their money. They expect a level of service that goes beyond simply making a transaction - especially in the smaller specialised areas of retail. Retail employers need their staff to possess relevant skills as well as a capacity to learn in order to address the challenges facing the industry. The retail sector has identified a range of skills that employees will require to either hold or obtain to pursue a career in the retail sector, now and in the future. Many of these skills are already filtering into the industry to varying degrees; however a more consistent approach is required. It has been emphasised that retail employee skills (or skill sets) in the future would require a focus on: the financial bottom line with an increasing expectation that all employees understand

aspects of the enterprise‟s financial situation;

customer relationships and customer service with the expectation that employees would understand the nature and importance of long-term customer relationships and greater emphasis on solutions for customers;

community requirements and expectations with regard to enterprise performance e.g. shareholder value, equal employment opportunity, occupational health and safety, environmental requirements;

globalisation i.e. factors such as increased international competition or a move into, or expansion of, global market activity;

increasingly complex operating environments as a result of regulatory, legislative and financial changes;

innovation and process improvement either to drive cost effectiveness or create new products and services;

flexible enterprise structures e.g. flatter, more autonomous structures and a workforce that is able to regroup as required; and

time constraints – customer demands and market competition will require product and service provision in shorter timeframes.

Employees, especially those on the shop floor, need to be equipped with the right combination of skills, experience and knowledge to keep pace with the shift in customer expectations. Evidence drawn from job advertisements for the retail sector indicates that in today‟s retail market, customer service is becoming the most essential employee skill. The main skills and abilities required of employees in Retail Operations were identified as: Customer service skills; Basic literacy and numeracy; Selling skills and product knowledge; Computer literacy and IT skills; Taking reasonability and initiative; and Personal characteristics: the right attitude, a desire to work with and serve the public. In order to adequately outline what employers are looking for, it is necessary to examine the current situation regarding skills needs in the industry. This is becoming a real challenge for an industry that is characterised by a workforce with a large proportion of young people who view retail as a short-term employment option while preparing for other career paths. The


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outcome is a growing demand for better and multi-skilled employees with an aptitude for customer service and sales. An overview of the challenges and drivers of change facing the Industry and impacting on entry-level positions is included in the final Recruitment and Profiling Tool for the Retail Industry report. The Employability Skills Framework The Retail Industry Working Group was established as part of the National Industry Skills Initiative. It concluded in its 2003 Retail Industry Report, that the industry required two streams of skills – Employability Skills and Specific Skills. Employability skills are defined as:

“skills required not only to gain employment, but also to progress within an enterprise so as to achieve one‟s potential and contribute successfully to enterprise strategic directions” The Specific Skills related to training in small business, management, product knowledge, IT and e-commerce and food handling. The Key Skills of the Employability Skills Framework are: communication skills that contribute to productive and harmonious relations between

employees and customers;

team work skills that contribute to productive working relationships and outcomes;

problem-solving skills that contribute to productive outcomes;

initiative and enterprise skills that contribute to innovative outcomes;

planning and organising skills that contribute to long-term and short-term strategic planning;

self-management skills that contribute to employee satisfaction and growth;

learning skills that contribute to ongoing improvement and expansion in

employee and company operations and outcomes; and

technology skills that contribute to effective execution of tasks.

The Employability Skills Framework also includes the personal attributes which describe a set of non skill-based behaviours and attitudes i.e.;

loyalty, commitment, honesty and integrity, enthusiasm, reliability, personal presentation, common sense, positive self esteem, sense of humour, balanced attitude to work and home life, ability to deal with pressure, motivation and adaptability. Employers feel that the personal attributes are as important as the skills and other technical or job-specific skills. They have identified the importance of what have been termed „personal attributes that contribute to employability‟ and have indicated that these are required as part of the set of employability skills. During the validation process of the Employability Skills Framework, enterprises of all sizes agreed with the complete set of personal attributes identified in the framework. A review of job advertisements across a number of different Retail occupations was undertaken in order to develop a picture of the desired personality traits and behaviours employers looked for in entry-level employees. This provided an insight to the skills and attributes necessary for success in the industry‟s entry–level positions, as perceived by employers in their job descriptions. The analysis examined the skills and attributes stated as


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necessary/desired by employers, mapped against the Employability Skills Framework. They have been categorised as: General Employability Skills mapped against the employability requirements of a

particular job and the relevant tasks; The attitudes/aptitudes necessary for success in the position; and Ideal qualities and characteristics for employees to have. These are outlined in more detail in the final report Recruitment and Profiling Tool for the Retail Industry. Although personal attributes appear to be a feature of employment in entry-level retail positions this is often an outcome of adhocery on the part of employers. The analyses revealed that the Employability Skills Framework may be used in a range of ways by enterprises; the skills and elements can provide the basis of job descriptions and interview

approaches in the recruitment and selection process; the flexibility of the elements section means employers can identify the relevance of

these or other elements to particular jobs over time; and on the job training can be focused on a mix of relevant skills and elements The analysis also revealed that: Employers are seeking employees with personal attributes likely to make them interact

spontaneously and perform effectively. Thus self-presentation, friendliness, drive, honest/integrity, conscientiousness and adaptability appear more important selection criteria than technical skills;

the meaning of the term „skill‟ has expanded considerably and that „Many

employers…appear to be using the term “skill” to embrace personal attributes‟ This broadening of the spectrum and mix of knowledge, capabilities, traits and personal attributes that are being grouped under the umbrella term of skills is raising the issue of what now constitutes „skill‟, what is the range of skills and attributes needed by employees;

The employability skill mix required is becoming more sophisticated and the demand for

this mix more critical. Thus, whilst debate continues about whether or not personal attributes constitute skills, and how and if they can be trained, there is increasing consensus about their importance to employers.

As was identified in the Retail Industry Report further work needs to be done on the personal attributes given their importance in determining someone‟s employability. The development of a new skills framework based on personal attributes, within the Employability Skills Framework can be utilised to increase the recognition of the skills of the retail workforce in a way which can be appreciated and valued by staff. The recognition of these so-called „soft skills‟ would not only refine recruitment and selection processes but will also foster a training culture which would encourage employees to continue training and improve their skills. Further work would be required to gain acceptance within the industry for this proposal and to clarify what attributes should be included, their measurement and how retailers can translate it into a recognition of skills attained for the employee which is transferable beyond their current employment position.


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Key Attributes for Employability in Retail Retail Employers Skills Surveys indicate that the sought-after skills for hard to fill vacancies are personal attributes, customer handling and communication skills. Recruiting and retaining staff is a major problem for many small to medium – sized enterprises in the retail sector. Various Reports suggest that these problems arise from skills gaps, concerning attitude, behaviour and personal characteristics. Employers are increasingly choosing staff that both look and speak the part and that self-presentation skills are assuming greater importance in some businesses than experience or technical skills. It should be noted that the shortage of such skills is not retail sector specific but is a general concern within many sectors. However, within the retail sector it is particularly acute because the industry is highly dependent upon communication and customer service skills. While few organisations have difficulty recruiting for entry-level positions, attracting the right candidate is often difficult. A lack of people with the right “attitude” has been seen as a major barrier to success. It is difficult to specify with any exactness however, what this „attitude‟ is. The Personal Attributes are considered a good blue print for identifying the basic aptitude/attitude that will be required by retail employees. The measurement of personal attributes is considered an important component of the personal dimensions of employability skills. Retail Employers are placing a strong emphasis on the need for both entry-level and ongoing employees to exhibit a broad range of attributes. Industry surveys have indicated that many employers: are trying to identify the personal attributes of the applicants during selection and

promotion processes; are advising applicants of the attributes required by the enterprise at the time of

application and through performance appraisal processes; are suggesting that entry-level and ongoing employees needed to reflect attributes that

were acceptable to the rest of their working peer group and the customer, and were in line with the company‟s approach;

view personal attributes at a more general level and not just relevant to the workplace but to life as a whole.

The development of a skills framework based on personal attributes will give people in the industry recognition for skills developed through employee‟s reference, demonstrating the transferability of the skills attained in retail to other positions, which will also support the industry‟s new messaging as part of its image overhaul. Importantly, such a reference document would be considered of value to many of the broader group of people retail should be considering targeting. It will provide a link, particularly for those who are not keen to enter a formal learning process, such as a Certificate in Retail. Older workers for example are unlikely to want to have a certificate in retail, however a reference demonstrating they are a good employee may be of value to them if they then wanted to go to another position and want to show age is no barrier. The concept of focusing on the personal attributes will sit beneath the formal training system. This is not about setting up a new skills framework for the retail area – but about aiming to complement the system through recognition of the personal attributes and create a means by which people would then feed into more formal qualifications. This raises a set of issues about how to monitor and report on such attributes. Employers are using a range of methods including observation, work placements and references. It is essential that we now take up the challenge of developing methodologies that can provide advice to employers on how personal attributes can become a feature of their recruitment, selection, training and promotion of employees.


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Retail employers should be encouraged to recruit on the basis of the sound knowledge and skills in which people with these attributes possess. Retailers, especially those in small businesses will also need criteria for identifying people who are more likely to engage in the industry for longer than the very short term. The plethora of skills programs in Retail are based around an agreed set of Employability Skills. But as was identified in the Retail Industry Report further work should be done on extending these skills to include personal attributes which are also an important factor in determining someone‟s employability. To clarify what attributes should be included their measurement and how retailers can translate it into recognition of skills attained, guidelines and support will need to be provided to employers including: Mechanisms for communicating the scope of personal attributes to employees and

employers; Means of providing feedback to employees on their acquisition of employability skills; The capacity to provide a rich source of information about employee achievement, with

supportive evidence; The capacity to provide a summary of the performance of possible recruits that is

readily apparent to employers; and A cost-effective means of collecting performance information, individually and at

aggregate level.

The is some confusion and disagreement with the training industry representatives, including the relevant Industry Skills Council, on where a recognition process for the Personal Attributes should sit in relation to the nationally recognised skills framework. Service Skills Australia has suggested that they support a process that offers recognition that is easily accessible to employers and industry and that links seamlessly to the national training system. It goes on to argue that one of the challenges that supporters of the system face is the multiple layers of the system and introducing another layer would add more complexity and not assist in system simplification. However, there were eight skills elements which all government and industry representatives have agreed should be incorporated into the formal skills recognition frameworks and Training Packages.

The Recruitment and Profiling Tool Recruitment Processes in the Retail Industry One of the subsequent effects of high attrition of employees in the retail sector is that employers are required to recruit for new staff regularly. Often, retailers will recruit for immediate or short term needs rather than looking at the medium and longer term. This situation is also problematic as the employer is constantly training new employees at the expense of offering further training to those people who would like to stay in the business and utilise the skills and knowledge they are learning in the longer term. The difficulties of recruitment are also leading to inappropriate recruitment practices. Employers need to learn how to recruit the right type of people while at the same time being realistic about the opportunities the industry offers. Employers find themselves dealing with a range of issues during the recruitment process including: The unfulfilled need for the right attitude in job seekers; The increasing difficulty of recruiting trained staff;


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The decrease in apprenticeships and traineeships; Many job seekers do not have an interest in working long-term in the industry; Employers‟ limited knowledge of vocational education and training; A training system that is not producing workers to the required standard The fact that these issues persist to exist is an indication that the currently existing recruitment strategies available to employers are not sufficient. The Rationale for a Recruitment and Profile Tool in Retail A recruitment tool tailored to meet the specific needs of the Retail industry would greatly benefit in the matching up of employers to prospective employees. Based on the personal attributes that employers would like ideal job seekers to have, the proposed recruitment tool for the Retail industry should: Identify the correct people, i.e. those that are best suited for the industry and therefore

most likely to stay long term. Help employers attract and retain staff and overcome the barrier of disincentives and

skills needs and misconceptions that turn people away from choosing retail as a viable career option.

Identify more than just technical skills as employers now seek staff that possess a variety of general aptitudes.

Identify trained staff, or staff who can be trained. A customized recruitment tool would address the discrepancies between what employers require during the recruitment process and what candidates have to offer. It would also support the Industry in the following areas: The increasing professionalism of the industry In order to keep pace with the changes, the industry needs a vision for its future, and one commitment to this vision is in the form of an innovative recruitment tool. This will help take the industry to higher levels, setting standards of excellence. Reducing the mismatch between the expectations of the employer and the capabilities of the job seeker would greatly assist in the commitment to the increasing professionalism of the retail industry. Looking beyond the usual recruits to identify job seekers who have an interest in working in the hospitality industry long-term There is no agreed selection process in place to assess the interest/ aptitude/ motivation of job-seekers entering the industry. The Recruitment Tool should enable potential job-seekers to go through a process that assesses whether they have the aptitude and motivation to work in the Retail sector. This should include identifying aptitude to the industry, attitude to work, recognition of prior learning and experience relevant to the industry and skills gap analysis relevant to each participant‟s industry entry point. Quality control Currently, challenges the industry is facing include enormous diversity, discontinuities in professionalism and differences in knowledge, skills and ability. These discrepancies within the industry will therefore have an impact on quality control and standards. A tool that is able to cater for these highly focused needs would be most effective. Employers would benefit in that it would help them to articulate and communicate their needs in an improved manner.


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The development of a recruitment tool to cater specifically for the Retail industry would also greatly aid in the challenge of preparing young people to participate in the increasingly complex and changing world of work. It will also support a broader entry point for potential employees, enabling them to more quickly obtain a benefit from their employment. It will assist them in their career development, ensure consistency across the industry, and demonstrate the commitment from the industry to re-focus on developing a professional approach to employment in retail. The recruitment tool should underpin a pre-employment screening process that can help employers hire an applicant best suited to the requirements of the job, and weed out applicants who exhibit negative characteristics. A customised screening process relevant to the industry‟s entry-level positions is essential to ensure the right job seekers are selected. This will require careful screening with a focus on identifying the often intangible, but increasingly important, „attitudes/aptitudes‟ associated with successful performance. It will also address and analyse how well a job-seeker fits a specific role, provides management advice and explains training and development opportunities for the individual. There are a range of other benefits that can be achieved for individuals and the business sector through the application of a recruitment and profiling tool. For example, it will become easier to: develop job descriptions that will date less quickly; focus on interpersonal relationships as they pertain to job performance; focus on the people who will do the work, not just the work they will do; enable candidates to quickly recognise and transfer their knowledge and skills

developed in one situation to the position advertised; and make a link between personal and organisational objectives; and values, so applicants

can clearly see how they could contribute to the organisation‟s culture. A recruitment tool that can be applied in the context of the Retail industry should also ensure: The job related requirements can be described to potential candidates in a simple and

concise way that encourages them to apply; There is less time needed for the selection process due to the reduced scope of detail

to be reviewed to shortlist and select applicants; The selection process can be more effective if the focus is placed on indicative

behaviours; There is a higher level of consistency for the recruitment, selection and appointment

process. The key features to be incorporated in a customised Recruitment Tool are outlined in a table included in the final report Recruitment and Profiling Tool for the Retail Industry.

Review of Existing Recruitment Tools

A review of existing recruitment tools has been conducted to uncover any significant gaps that a customized and innovative recruitment tool for the retail industry could address. This review included an analyses of the Chandler MacLeod ESP, the Harrison Innerview and ACER WPI Tool with a view to tailoring the current tools to the needs of the industry. An overview of existing recruitment tools is included in the final report Recruitment and Profiling Tool for the Retail Industry.


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Review of the Hospitality Recruitment Tool Previous work on skills shortages undertaken by Restaurant and Catering Australia (RCA) has led to the development of a Tourism and Hospitality Employability Skills Recruitment and Staff Screening Tool to address the high attrition rates of students and others who enter the industry and to assist in the promotion of skills development for new and existing staff. The Personal attributes were seen as a base to help employers get a better understanding of what makes a successful employee. It was not enough to only find out about their skill sets and knowledge of the job requirements but also about the „soft skills‟ and „character traits‟ potential recruits can bring to the business and how employers can discover those before they make that crucial hiring decision. Restaurant & Catering Australia put forward the ACER WPI model forward as the recommended recruitment tool for the hospitality industry with the measurement of personal attributes an important component of the tool. It undertook to tailor the ACER WPI tool for specific use in the hospitality industry. This included the validation of existing hospitality aptitudes and attitudes against the WPI tool. Through the consultation process they were able to confirm the desired personality traits and behaviours of people applying for positions in the hospitality industry. The Workplace Personality Profile, developed through the work of RCA, is based on a small number of personality traits related to work performance, tailored to the Hospitality/Tourism industry. These are outlined below and potential employees can be measured against these attributes with employers receiving a WPI Job Match Profile report that will give them a fit of the potential employee to particular jobs. A table illustrating desired personality traits and behaviours of people applying for positions in the hospitality industry is included in the final report Recruitment and Profiling Tool for the Retail Industry. Customising the Recruitment and Selection Profiles for Retail Many companies and recruiters are now using specially developed psychological assessment tools to gain further insight into an applicant's character and personality traits-such as ethics, honesty, integrity, kindness, negativity and loyalty. The challenge is to further develop the personal attributes to help employer‟s better judge an applicant's soft-skills before they invest the time and money into hiring and training. Retail employers should be encouraged to utilise a similar profile as used in the Tourism and Hospitality Employability Skills Recruitment and Staff Screening Tool. The Personal Attributes should be used to measure distinct personality characteristics to help employers determine which applicants are right for the positions in the Retail Sector. The Profiles developed for the Hospitality tool can be used as a starting point because it has a fairly large number of personality traits that can be associated with the cultural dimensions used to describe positions in Retail. The Hospitality tool estimates an individual's personality on five broad domains as outlined earlier. An examination of human resource professionals responsible for hiring entry-level employees revealed that some traits are deemed more relevant for defining a match with the cultural dimensions of Retail Businesses. These included: Drive to Achieve Assertiveness Self-Confidence Service Orientation Introversion / Extroversion


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Flexibility Reliability. Further work is required with employers in order to develop a picture of the desired attributes and behaviours they look for in employees and to establish the indicative behaviours of people applying for positions in the industry. Giving employers the tools to match the right personality to the right position, easily and effectively can mean the difference between an employee who succeeds and one who doesn‟t. The personal attributes will support an integrated, relation approach that links the attributes of individuals to the demands of tasks; takes account of the attitudes/aptitudes of individuals; focuses on process rather than content; and assists employers to support those job-seekers who want to develop their own skills and increase their ability to enhance career mobility. Matching the right personality to the right position through Recruitment Profiles will require a mix and match of approaches across the four key areas, outlined below, to meet for unique hiring situation of individual employers. Personality Analysis Career Analysis "Can-Do" Attitude Reliability The key elements of a Recruitment Tool customised for the Retail Industry are included in the final report Recruitment and Profiling Tool for the Retail Industry.

Next Steps 1. Further consultation with Retail Employers to validate Personal Attributes,

including exploring appropriate formal recognition systems To develop a picture of the desired attitudes/aptitudes and personal characteristics employers look for in employees further research needs to be carried out to establish the personal attributes necessary for success in the industry. This will also give an insight into areas where a recruitment tool can be applied, the skills and attributes necessary for success in the industry‟s entry–level positions and clear definitions of what the industry and business enterprises mean by „personal attributes‟ and the consistency or otherwise between the various terms similarly used. It will be also important to liaise with relevant government agencies, particularly qualification recognition agencies, on the process required to formalize the attributes, if any. 2. Guidelines for Employers The development of guidelines, exemplars and materials suitable that will support employers in giving people in the industry recognition for skills developed through employee‟s reference. This will include the use of a common language to describe „personal attributes‟, their application in recruitment and selection and their reporting in a way which can be appreciated and valued by staff


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3. Undertake further work to effectively customise the Recruitment and Profile Tool to meet the recruitment and retention needs of the industry

Formal approaches will need to be made to Cmypeople (Chandler MacLeod ESP) and ACER (ACER WPI Tool) to explore the feasibility of tailoring their tools for specific use in the Retail industry. This will include clarifying approaches for: validation of existing retail attributes against the profiles for the tools; tailoring and trialling of the tool with employees in a range of small, medium and large

businesses; consultation with a range of employment, education and training providers; and a monitoring and review process for the initial job seekers and employers using the tool

involved in the trials. 4. Based on the decision to proceed with a Recruitment Tool, a strategic plan

including time frame and costs should be developed. The following strategies will need to be worked on to overcome some of the concerns of using a recruitment tool: Analysis conducted using both costs of recruitment and employee turnover measured

against the cost of using a recruitment tool; Given that NRA launched its on-line platform in September examine the feasibility of

this platform hosting the recruitment tool; Work with associated companies who may be prepared to sponsor the use of a

recruitment tool, showing them the benefits of being involved at this level with the Retail industry;

Develop case studies showing success stories of employers using the recruitment tool; Discuss with stakeholders how the tool may be made more cost effective for use for

members; and Develop strategies to promote to employers how to use the tool cost effectively,

including only putting their preferred candidate through such a tool.


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Element 3: Specific Retail Industry Qualifications

Background Ongoing changes within the retail industry have seen the need to understand the workforce development needs of staff, especially managers and middle managers. Technology changes, supply chain efficiencies, product/line variances and legislative changes continue to impact on the development of personnel in the supervisory and delicatessen areas of retail. It was also identified through consultations with a number of organisations that some key areas of retailing have not been actively engaged in the national training system. These areas include: Delicatessen Managers – the need to develop a qualification that is specialized for this

occupation but allows for articulation to other occupations. It is particularly appropriate for existing workers who undertake these responsibilities in specialized way and who are required to satisfy a range of regulatory requirements including food safety and hygiene. It is proposed that the qualification would not be a traditional apprenticeship.

Middle Managers – including innovative training in security, cash handling, staff theft

and dealing with company representatives. There is a dire need for the development of skill sets in these skills across the industry.

The brief for this component of the project was to therefore to gather and document evidence of the industry need and support for qualification/s customization for delicatessen and middle managers. Once this had been achieved, collaborative arrangements with Service Skills Australia for customising and developing qualifications for delicatessen and retail middle managers should be established. It was also necessary to establish industry led and supported processes to undertake further work in customizing and developing qualifications for the occupations of delicatessen and middle mangers. An outline of the work undertaken and overall findings are presented below.

Methodology Research was conducted to identify the level of need current for the addition of additional qualifications to be added to the current Services Industry Retail Training Package (SIR07). Using varying medians of consultation, which included industry roundtables, meeting with key stakeholders of enterprises, an online survey and a number of meetings with Service Skills Australia, the Industry Skills council for the Services industry, a holistic understanding of current needs was identified. Consultations and discussions were held with a varied and mixed range of retailers with the emphasis on identifying the needs of the industry associated with the current retail training package offer. Several industry roundtables were conducted with a mix of retailers participating and issues discussed primarily focussed on the area of middle management and supervisory development. Additionally, individual meetings were held with food retailers concentrating on the delicatessen needs of their business. The understanding, uptake and use of the current SIR07 training package by participants was also established at these forums. In addition to the roundtables and individual consultations, an online survey was conducted. The survey was valuable and enabled project consultants to identify additional industry


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needs in relation to the current SIR07 training package.

Overall Findings Industry in general is currently satisfied with the number of qualifications within the current retail training package for middle managers. However, two areas requiring attention were identified including: 1. the need for additional units of competency to be added to the existing offer to cover

more broader needs in the primary areas of buying, stock management and supply chain, with secondary areas of visual merchandising and retail finance; and

2. the identification that most medium to large enterprises consulted undertake their own

internal training operations to the standards and culture of their particular enterprise resulting in a reduced adoption of indentured training. Coupled with this is the time restraints and repetition of competencies experienced by these enterprises as a result of the limited holistic delivery provided by a large number of Private RTO's.

Findings in both areas were uniform and conclusive in the respect to the need for additional units of competency and not new qualifications. A large percentage of the enterprises consulted throughout the research phase have concluded the current SIR07 training package contains sufficient qualifications with no need for additional qualifications to be added. Qualifications for Middle Managers The majority of larger enterprises only utilise components of qualifications available within the current training package and therefore feel the current qualifications available are sufficient and in some instances not required. For small to medium retailers the research identified the current training package is suitable for middle management development and is utilised in a different format to their larger colleagues. The majority of small to medium retailers (SME‟s) do not have sufficient resources to offer a complete internal workforce development framework to personnel. As a result, a larger proportion of SME‟s that engage with the VET framework are utilising the full set of qualifications available within the current training package. This ensures holistic skills and knowledge development is achieved. However, both cohorts identified areas of improvement to the current training package to include additional units of competency in areas that are not adequate or have experienced considerable advancement in processes in the last two to three years. Together with this, a small number of retailers consulted identified with the need for reviewed and updated units of competency around retail financials that would include a broader understanding of new financial options at the point of sale. Qualifications for Delicatessen and Delicatessen Managers With food safety regulations increasing throughout Australia and the introduction of strict operating practices in two states, there is a need for a consolidated and holistic review of units of competency in this sector for delicatessen managers and staff. The introduction of such legislation brings a new level of concern in relation to the operations of food retailers. A review of existing units of competency needs to consider the handling and safety elements


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as well as raw food merchandising, supply chain management for food stuffs and the development and maintenance of food safety plans for food retailers. For delicatessen and delicatessen managers, industry consulted has indicated the need for reviewed and additional units of competency for the development of personnel in these areas. The need for a specific qualification/s to be added to the current package is not generally needed however, addition to the range of skills sets is required. SME‟s, especially franchisee‟s, stand-alone delicatessens and licensee groups currently have a greater need for the extension and inclusion of food handling and food safety supervisors to be included within the SIR07 Training Package. Skills sets A relative topic that arose throughout research and consultation especially from larger enterprises was the desire for VET frameworks to have skills sets training available to staff as opposed to the requirement of undertaking a full qualification. It appears that retail staff were not always offered the option of undertaking recognition of prior learning and/or recognition of current competency by RTOs, resulting in existing staff with a reasonable existing skill and knowledge base having to undertake and complete competency in skill areas that were already developed through internal practices. It is evident that large, medium and small enterprises have suffered from this notion over the years to the extent of disengagement from the VET system as a result of 'taking the word' of private RTO who are not completing aligned to the VET framework or are out to make a quick dollar.

Recommendations It is recommended that the research and development of additional units of competency required to meet the evolving needs of industry be undertaken as part of the „continuous improvement‟ process by the Industry Skills Council (ISC). Industry representatives should be involved to ensure that the gaps identified are alleviated. For middle management and delicatessen outcomes, it is necessary to undertake more holistic applications in identifying the content needs for relative performance and assessment criteria associated with the industry identified gaps. In the particular area of merchandising (stock and visual), it is important to note that industry identified the current range of units of competency available in certain qualifications (Certificate III and IV) needs to be expanded to meet the varied needs of industry, while units of competency in the diploma should be reviewed for relevance. A number of skill sets that currently exist within the diploma are not used or needed as part of the Visual merchandising managers role (eg graphic design units which are not used by staff in the role). In relation to the outcomes identified around skills sets, ideally it would be sound operating practice for Service Skills Australia to continue to provide professional development for RTO's in unpacking a qualification/s and provision of RPL and RCC as part of normal practice by an RTO. Professional development for enterprises to understand the VET system and especially the flexibility that now exists within the SIR07 Training package needs to occur to ensure enterprises have the awareness and understanding of how the framework is able to be flexed to meet the needs of internal operations while still maintaining compliance.


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Additionally, the Australian government must work closer with auditing bodies to ensure RTO's, especially Private RTO's, are offering RPL and RCC to each and every trainee undertaking indentured or non-indentured qualifications. This would reduce the duplication of skills development that is evident and also alleviate the paperwork and time restraints that are inflicted on enterprises/employers unduly. Should action not be taken to alleviate the mis-information given by some RTO‟s, enterprises will continue to disengage from the VET framework resulting in lesser uptake and higher cancellation rates of trainees. Further information relating to industry consultation and findings are provided in the final report for Element Three.


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Key Findings The key findings from the different elements of the project are presented below. Analysis of Proud to be Retail Concept:

- Agreed need for image change of retail as an employment option; - Too heavily focused on retailers‟ needs at risk of disenfranchising potential

employees; - Potential to be viewed as a PR exercise without delivering significant change; and - Need to broaden target audience for recruitment.

Key issues identified:

- Skills/labour shortage will continue due to demographic changes and competition from other industries for workers, despite economic slowdown;

- Need to broaden recruitment approach to a wider potential workforce; and - Challenges for retail – lack of an industry wide approach, negative image, low

wages, people do not see it as a career, confusion over training and its relevance for some employees and employers.

Issues Paper encouraged debate and general acknowledgement of:

- need to address the issue from a whole of industry perspective, rather than competing against each other; and

- need to develop separate messages for a broader audience of potential employees. Main Themes:

- High level focus on benefits to employees; - Diversity of careers in retail; - Transferability of skills; - Opportunity to move from shop floor to owning own business or senior

management; and - Can easily move in and out of the industry depending on the time of your life:

student, post-study, return to work parent, mature age employee seeking part-time work.

Opportunity identified to develop framework incorporating personal attributes as

complementing the employability skills framework. This will provide an industry wide structure, assist in repositioning the industry as delivering benefits to the employee and provide a mechanism to encourage employees and employers to link up with RTO‟s.


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Conclusion This report demonstrates that the retail industry, like many industries, has been challenged by Australia‟s current skills shortage. More recently, this has extended to a general tightening of the labour market. Businesses regularly report being unable to pursue growth strategies due to an inability to find the necessary skilled or unskilled staff. To meet this challenge, the industry must focus on two areas. First, retaining and upskilling those already in the industry, which will reduce staff turnover, cut replacement hiring costs, improve the quality of staff in the industry and minimise the need for new recruits. Second, the retail sector as a united group must be more strategic in its labour recruitment, including re-evaluating who it targets and how. Critical to each of these approaches is the enhancement of the industry as an employer. It is staggering that while most people interact with the industry on a daily basis from buying their groceries to having a cup of coffee, they do not hold a career in retail in high regard. Research confirms that the public perception is that you work in retail because you cannot get anything else. Low wages, no career structure, lack of professionalism, inadequate and inappropriate training and little reward or recognition for its employees are some of the common criticisms of the industry. The situation where the major retailers are at times more focused on competing against each other than fending off rival industries, only serves to reinforce this image. Going forward, retailers must begin to work together to present a professional image of the industry. They must strategically manage the labour issue from a whole of industry position so they can compete, as opposed to fighting amongst themselves over the same diminishing labour pool. The main recommendation to improve the reputation of the industry is to adopt a key set of messages which form the basis of the industry‟s approach to re-branding the industry as an employer of choice. The themes are based on the needs of employees – what they are looking for in a job, rather than taken from the employers‟ perspective. As with all marketing, it is about ensuring you have something of value which the customer, or in this case the employee, wants. The three themes proposed are transferability of skills, diversity of employment and flexibility, as a retail career can take a person through various stages of their working life. The messages can be tailored to the specific target audience to deliver the right message for the right audience. Each challenges some of the negative views of a retail career and in doing so will assist in enhance the reputation of the industry as an employer for current staff as well as potential workers, extending beyond the youth market. This could include parents returning to work or mature age workers staying on in employment which may involve a career change into retail. It is acknowledged that no public relations campaign will deliver real change unless it is backed by something of substance. What is required in this case is increased recognition of the skills of the workforce in a way which is appreciated and valued by staff. It is proposed this could be achieved through the development of a new area within the Employability Skills Framework. This would focus on the formal acknowledgement of the attainment of personal attributes of staff. The recognition of these so-called „soft skills‟ would foster a training culture which would encourage employees to continue training and improve their skills. Further work would be required to gain acceptance within the industry for this proposal and to clarify what attributes should be included, their measurement and how retailers can translate it into a formal recognition of skills attained for the employee which is transferable beyond their current employment position.


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Making retail a job which people seek out, rather than fall into, will be essential if the industry is to successfully compete in the battle for employees in the next several years. It is time retail took a lead position, to reposition the sector so that it attracts new employees and retains those already in the industry. Last but not least is the requirement for the retail industry to work together as a team. There are currently a range of peak industry bodies and retail associations, and unless these groups come together to work as a team, the issues currently being faced by the industry will not be solved.

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National Skills Shortages Strategy - Business Group · PDF fileNational Skills Shortages Strategy Reducing Skills Needs in ... the „Proud to be in Retail‟ Marketing ... holistic