Headwinds In The Retail Labor Market: Adapting To The Evolving Workloads Of Omnichannel Retailing – Part 2 – Employee Rights/ Labour Relations

Today’s Shoppers Are a Moving Target. Are You Prepared To
Adapt to the Evolving Workloads of Omnichannel Retailing?

Current headwinds in the retail labor market present formidable
challenges and hurdles for retailers in effectively managing their
workforce. These challenges arise from dynamic shifts in economic
landscapes, evolving consumer behaviors, and rapid technological
advancements.

In part two of this seven-part series, we will examine
the challenges that have manifested in today’s retail landscape
from the demands of omnichannel execution.

The impact of online shopping on consumer preferences and
strategies to enhance the shopping experience encompasses a wide
array of options, spanning from buy online, pick up in store
(BOPIS) to ship from store (SFS) and various hybrid models. The
demands of omnichannel execution have profoundly influenced the
workload within the retail sector. How has this manifested?

• Complexity of Retail Operations

Omnichannel strategies expand retail employee duties with online
order fulfillment, in-store pickups, and cross-channel returns. The
imperative for seamless integration of online and offline inventory
systems heightens operational intricacies, demanding efficient
coordination and communication among teams.

• Shift in Labor Allocation

Employees now juggle diverse roles beyond traditional duties,
necessitating cross-training, and adaptable job descriptions. Labor
shifts from customer-facing to fulfillment and logistics to support
BOPIS and SFS services. Mismanagement can impair in-store customer
conversion rates, highlighting the importance of strategic
workforce deployment and training.

• Demand for Enhanced Skill Sets

Employees require enhanced digital literacy to navigate online
order management systems. Customer service skills remain essential,
particularly for BOPIS, Same-Day Home Delivery, and SFS
interactions, which often serve as the primary in-person
touchpoints in the customer journey.

• Workforce Scheduling Challenges

Retailers grapple with predicting staff requirements amid
fluctuating online order volumes and in-store pickups. Dynamic
scheduling systems adjusting to trends and seasonality are vital
for adapting to demand fluctuations efficiently, ensuring optimal
staffing levels to meet customer needs while controlling labor
costs.

• Increased Pressure on Speed and Accuracy

Consumer demand for swift BOPIS, Same-Day Home Delivery, and SFS
orders heightens pressure on retailers for efficient execution.
Order accuracy is paramount to prevent customer dissatisfaction and
costly returns, emphasizing the need for meticulous fulfillment
processes.

Managing inventory for online and in-store sales is increasingly
complex, demanding advanced inventory management and forecasting.
Retailers must synchronize stock levels to meet online demand while
ensuring sufficient in-store availability, necessitating precise
inventory control and forecasting strategies.

• Enhanced Focus on Customer Experience

Retailers must prioritize seamless multi-channel experiences,
necessitating enhanced training and customer engagement efforts.
The effectiveness of BOPIS, Same-Day Home Delivery, and SFS
services hinges on retailers’ ability to meet customer
expectations for convenience and service excellence.

• Rise in Operational Costs

Implementing omnichannel services demands investments in
technology, training, and infrastructure upgrades, elevating
working capital deployment and operational costs. Retailers must
balance these expenses with potential sales growth and customer
loyalty benefits to ensure optimal return on investment. Strategic
fiscal management is crucial for sustainable profitability amidst
these expenditures.

• Workplace Health and Safety
  Considerations

Incorporating fulfillment tasks in retail has raised health and
safety concerns. Strict protocols for product handling,
cleanliness, and ensuring the safety of both employees and
customers are now imperative, necessitating heightened vigilance
and adherence to stringent guidelines.

The challenges in today’s retail landscape require retailers
to adopt innovative labor management practices and invest in
relevant technologies and training programs to effectively manage
the evolving workloads driven by omnichannel strategies. It is
crucial for retailers to continually evaluate the efficiency and
customer satisfaction of In-Store, BOPIS, Same-Day Home Delivery,
and SFS services to meet modern consumer expectations while
retaining in-store customers.

Other articles in this series:

Headwinds In The Retail
Labor Market: 9 Critical Challenges Facing Retailers Today – Part
1

Ankura Performance Improvement Fundamentals

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We work side-by-side with management and other stakeholders to
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Our Approach To Helping Clients Respond to Critical Workforce
Demands Includes:

• Human Capital Design – Create a human
  capital assets plan in accordance with the overall strategy




• Labor Utilization – Align labor utilization to
  meet demand, and focus on customers to improve conversion




• Performance Management – Apply a data-driven
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The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.