“Wanted sales girls/boys” boards hanging in the doors of shops has become a common sight today. After a near washout in sales over the last two years due to the Covid-19 pandemic, the retail sector is expecting a bumper festive season this year. However, the battle for talent is worrying retailers ahead of the season.

Attrition is high and over 40 per cent. Like in the IT industry, employees in the retail sector leave if a competitor offers a few thousands more, said an official of a leading recruitment firm. There is no loyalty, he said.

L Subhash Chandra, Managing Director of the Bengaluru-based Sangeetha Mobiles Pvt Ltd, agrees. “Well, at store-level attrition is always high across the category. Nothing really worth mentioning at other levels.”

“It’s a battle for talent. We are struggling to find talent,” Suhail Sattar, Director at Hasbro Clothing (manufacturers of Basics clothes), recently told newspersons.

Before the Covid-19 pandemic, the retail sector employed over 45 million people, of which it lost almost 5 million during the peak of the pandemic. The industry has recouped and has re-hired almost an equal number. Now, retail businesses are looking to expand their workforce, both at the front and back end, to drive the next phase of growth, said Kumar Rajagopalan, CEO, Retailers Association of India (RAI).

Diverse talent needed to grow

The retail industry is witnessing a growth of 20 per cent as compared to pre-pandemic levels. During the pandemic, many retailers lost their employees to reverse migration and downsizing due to financial distress. With retail registering growth, retailers are scampering for talent. This situation is being exacerbated by the fact that retail has become an omnichannel play, which requires a diverse range of talent to function and grow, he said.

“With the resumption of expansion and entry of new players, there is a scamper for people at the front-end of retail. In addition to front-end employees, retailers are also looking for individuals to work at their distribution centres,” he said.

Today, retailers not only require people with traditional skills such as designing, merchandising and buying among others but also those with capabilities around e-commerce, digital enablement, consumer relationship management and social commerce, he added.

Higher attrition levels

Lohit Bhatia, President, Workforce Management, Quess Corp, a large staffing solutions provider, said, “ After a nearly three-year gap, we are optimistic to witness a joyful and prosperous holiday season with growing demand for festive hires.”

It is evident that consumers have now returned to the physical experience of dining out, visiting malls and shopping at retail stores. More jobs are being created in the retail and consumer industries with the demand strengthening over the holiday season.

Numerous people are getting hired, including apprentices as well as experienced temporary staff. However, the challenge at this time is higher attrition levels which impact customers and overall productivity during the crucial festive period, he said. “In the current year, attrition levels on the frontline workforce have increased by nearly 30 per cent over previous years,” he said without giving an absolute number.

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