HR Takes A Page from the Retail Digital Transformation Playbook
Brick and mortar retailers are going out of business because they have failed to adopt digital approaches including e-commerce to engage consumers. To remain successful organizations need to embrace technologies like unified communications to attract talent regardless of their geography.
Remember when back-to-school, holiday or even grocery shopping required hopping in the car and driving to a store? Now, more and more, shopping has become a point and click activity. Brick and mortar retailers are going out of business (on both sides of the Atlantic) in part because they failed to embrace digital transformation in time to protect and advance their businesses. This includes adopting e-commerce capabilities, updating their storefronts, and using social media to engage consumers.
According to the National Retail Federation (NRF), 2018 saw retailers’ investments in technology, fulfillment and store experience pay off as consumers flocked to new ways of browsing and buying. So, what do the experiences of retailers have to do with human resource (HR) departments? These experiences – and resulting successes and failures – are not unique to the retail industry. All organizations, including HR departments, can learn valuable lessons from retailers. For starters, to remain successful, it is important to embrace change, especially innovative approaches to new and existing activities. This will help them keep their competitive edge.
Here are some of the lessons retailers have learned in regards to digital transformation that HR practitioners need to embrace:
- Appearances (and a willingness to adapt) matter: During the ‘80s, we saw the rise of indoor shopping malls. Over time, the mall’s decor became dated and the consumer felt trapped inside the dark hallways. Now, to stay competitive, retail management companies have had to adopt a new look and feel that includes outdoor shopping centers, e-commerce, and social. Some retailers, such as Marshall’s, for example, just announced it will offer an e-commerce presence and finally embrace a full multichannel approach to retail. For HR departments, it is no longer enough to offer a new employee a seat in a cube and coffee and conversation by the water cooler. To attract talent, organizations need to think about the ideal profile of the employee they want to attract, his/her lifestyle, and how they behave socially. One way HR departments and organizations can adapt is to offer modern office perks such as the opportunity to work from home, collaborative workspaces, innovative ergonomic office space, daylight, beverages and snacks, and nap areas. They need to look into technologies that allow them to improve collaboration – regardless of where the employee physically sits 9 a.m. to 5 p.m.
- All data has value: Retailers relied on historical data from (old) databases to make predictions about consumer buying trends. Today, retailers use a combination of live and historical data in real-time to make actionable decisions before a sales opportunity passes. Similarly, HR departments relied on snail mail (and eventually email) to receive resumes. Communication expectations and channels have shifted and candidates want application processes that are simple. It is up to HR to make the process easy for the applicant. Today, HR departments can create automated searches in platforms like LinkedIn to identify potential candidates, help guide those individuals to their next job, and use their Human Resource Information Systems (HRIS) systems to streamline the resume review process. In addition, HR can access and evaluate internal data to determine who might be leaving the company.
- Include information systems: Retailers were quick to adopt standalone point solutions to monitor store transactions and inventory and eventually e-commerce sites. However, the older the brand, the slower it was to adopt multi-channel platforms such as Demandware’s (now Salesforce.com) comprehensive platform. HR started by adopting automated payroll options and now have access to complete HRIS, which include hiring talent, healthcare, planning, performance management, and other HR-related tools helping them to automate the entire process.
- Communications counts: Retailers would have store greeters to meet shoppers or display fliers to let shoppers know about great buys. Now it is common for shoppers to receive notifications via text, email or social about sales based on individual preferences — personalizing the way consumers learn about promotions. Workers entering the workforce are engaged differently than previous generations. Communications has shifted to reliance on video and messaging platforms which resonate with younger generations and their desire for demand capabilities. One popular approach is to use a unified communications (UC) solution that allows the user to choose the voice, email or video conferencing to engage. Most importantly, when UC solutions such as video conferencing tools are applied, stronger bonds with remote employees are forged, breaking down geographic barriers allowing coworkers to interact as if they are in the same room.
Retailers are paying the price of not adapting to the times. HR departments can’t afford to not adapt. They are in a position to help set the tone for how to address digital transformation across their organizations. Their lack of transformation can lead to dire impacts on the entire organization. The transformation starts with technology but ends hinges on work lifestyle and embracing new ways of socialization. HR departments can adapt and transform or they can watch their organizations end up like Sears – out of business.
Also Read: Your Company’s Talent Strategy Shouldn’t Stop at the Offer Letter
