How Grocery Retailers Can Build Better People-Driven Models

Retailers in the grocery sector face two major challenges: a high demand for new roles and skills, and a perceived shortage of talent exacerbated by high employee turnover. While these issues are significant, they also present an opportunity for growth. Forward-thinking grocery retailers can unlock substantial value by evolving their talent models to meet these new demands.

The Changing Workforce in Grocery Retail
Companies must rethink and redesign roles and tasks in response to technological advancements, automation, instant delivery, online sales, and changing social skills. These factors are reshaping the responsibilities of grocery store workers. The way grocery retailers equip and empower their employees will significantly influence staff retention and attraction. As demand grows for technical, planning, and analytical skills, retailers must adapt. For example, in the U.S., customers increasingly prefer self-checkout, reducing the demand for cashiers. However, cashiers serve as important human touchpoints in customer interaction. By providing training in technology and digital customer service, these employees can transition into new roles.

Reducing Short-Term Attrition by Addressing Employee Experience
Currently, there is a disconnect between what employees and employers deem important. The pandemic highlighted that while employees seek benefits, perks, and better pay, feeling valued and forming social connections is even more crucial. To bridge this gap, companies should invest in robust onboarding programs and continuously motivate in-store teams. Understanding what employees value and meeting their needs is vital for retention.

Invest in Future Talent
As grocery stores adapt to automation and changing consumer behavior, they must also attract the right talent for managing technical channels. The shift to online channels has been significant, and many grocery stores struggle to recruit qualified personnel. Investing in this area requires a strategic approach over three to five years, rather than merely reacting to competition.

Attract and Retain Digital Talent
Grocery retailers must focus on attracting and retaining digital talent, including data scientists, developers, and data engineers. Success in this area will depend on anticipating digital talent needs and linking them to compensation and benefits. Creating digital-focused career paths and opportunities within existing teams will also be essential.

The Bottom Line
Change is inevitable, and no industry is immune. However, transformation in grocery retail should be seen as an opportunity for growth, both for the business and its employees.

To fund your next talent model and digitize your grocery store, contact Merchant Capital and secure funding in the next 48 hours.

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