01the planning and productivity magazine

published by

Contents

For the past few years REPL and ReThink have been developing a Workforce Management community with the aim of bringing retailers together to discuss the latest trends and innovations. We hold two events each year, one a pure networking event held in London and one a full day event in Birmingham with presentations, panels and workshops ran by retailers for retailers.

This magazine is an addition to the community and is aimed at the workforce professional. It covers some thought leadership and case studies which we hope you will find interesting. In future we will publish twice a year and are looking for contributions from retailers and members of the community.

Retail is in the middle of a global revolution and

workforce management is at the heart of it. Employees, Customers, Suppliers and Governments are all placing significant demands on Retail and both REPL and ReThink believe only the companies that embrace these opportunities this presents will thrive.

I hope you all continue to benefit from the events we hold and the content we publish.

Introduction

Many Thanks

Chris Love (REPL) Simon Hedeux (ReThink)

Contents &Introduction

It’s Time to Rethink What Workforce Management Really Is

Why Workforce Management Software is the Way Forward

The Effects of the National Minimum Wage Increase

Death of the 9 - 5Technology to Replace People in Retail Stores?

Why Zero Hours’ Contracts Are Becoming Increasingly Popular

Costa: Cutting Costs and Boosting Sales

Hema Case Study

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Companies choose to implement workforce management and mobile tools to enhance their workforce and improve customer satisfaction.

Workforce mobility apps allow managers to; input and edit schedules, confirm availability, clock in and out, set work preferences and much more!

In addition, by harnessing the power of mobile, employees can balance their work-life better whilst achieving cost savings.

Virgin Media saw an 18% uplift on mobile products post-deployment!

Virgin Media’s Senior Operations Manager, Ian Villalard was searching for the right workforce management solution for their needs and identified REPL Group and JDA as partners who would be able to match their commercial desires, and achieve the results they expected.

We provided them with consulting services to implement the project and a mobile

solution for their associates and managers - mobile products post-deployment saw an 18% uplift!

Ian Villalard was extremely pleased with the results commenting that the workforce management solution has “absolutely given us a return on investment”.

REPL Group discuss the top managerial and employee benefits of workforce management solutions.Cont.

Why Workforce Management Software Is the Way Forward!

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Eliminate human errorAnyone can make a mistake, it’s part of human nature, however mistakes that occur at your warehouse or shop could wind up costing your organization a great deal - it could mean a huge loss in profit or inventory.Fatigue, stress, multitasking or a noisy environment could all play a part in errors that take place for example order picking errors. However, this can be eliminated completely with a workforce management system that allows staff to use an automated process.

Increase employeesatisfactionThe more employees can do for themselves, the more empowered they feel. According to 2017 employee engagement statistics gathered by The Engagement Institute, disengaged employees cost organizations between $450 and $550 billion annually!With a workforce management solution, employees will have the opportunity to view and edit personal schedules, confirm shifts in one click, request time off, view their remaining annual leave entitlement and clock in and out with ease.

Save timeThink about how much time you or HR spend assembling work schedules. By utilizing workforce management software, you / HR will have more time to spend on additional vital tasks.

Enhance the customer experienceThe customer experience is enhanced with a workforce management solution because employee morale is increased and employee morale is increased because payroll errors for example, will never occur. Also, employees have more responsibility therefore feel happier. This leads to higher productivity resulting in a stronger customer experience overall.

Improve securityBiometric data collection devices allow employees to clock in and out with the use of fingerprint scanning – this way ‘buddy punching’ is eliminated.

Enhance analytical functionData management is an essential element in achieving a successful business. Having the ability to see real numbers, compare actual performance and measure success against a plan will work wonders for your organization – allowing you to manage your business more effectively.

Managers require these types of tools to make the best and most profitable decisions for an organization.

Minimize compliance risksAll companies must acquire records which prove the business is compliant with its legal obligations, and this information is sent to national and local government bodies.

Manual records could, as we previously discussed lead to errors, and even the smallest errors could cost your organization huge fines, courts costs and other expenses. Workforce management software can instantly record this data eliminating the risk of any mistakes occurring.

So, what are you waiting for?! For further information on how REPL Group can help to implement a workforce management solution ideal for your organization’s requirements, contact us today and we will be happy to assist you.

1. 3. 6.

7.

4.

5.

2.

The Engagement Institute:

http://blog.accessperks.com/2017-employee-engagement-loyalty-statistics#1

www.replgroup.com

UK: +44 (0) 844 752 0036USA: +1 877-279-REPL

info@replgroup.com

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There is so much hype in the media about how zero hours’ contracts (also known as contingent work contracts) are the enemy, but are they really as bad as we’re being led to believe?

According to the BBC, new figures based on an analysis from the Office for National Statistics, reveal that 105,000

more people were on contracts that do not guarantee work in 2016, compared with the same period in 2015.

Over the years, many people have called for there to be a ban on zero hours’ contracts however in June 2016, Prime Minister David Cameron refused calls to ban zero hours’ contracts insisting; “some people want to have the choice”.

WHY ZERO HOURS’ CONTRACTS ARE BECOMING INCREASINGLY POPULAR

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AGE, GENDER & EMPLOYMENT STATUS

People Surveyed: April 2016 - June 2016

A survey undertaken by the Office for National Statistics states that people on zero hours’ contracts are most likely to be young, part-time working women, or people in full-time education.

903,000 people surveyed throughout the UK

were on a zero hours’ contract. The pie chart below shows how the number of people on zero hours’ contracts in the UK is split by age.

404,000 of people surveyed were male and 499,000 were female.

16 - 24 years

25 - 34 years

35 - 49years

50 - 64 years

64+years

36%

6%

21%

18%19%

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ADVANTAGES OF ZERO HOURS’ CONTRACTSThe rhetoric tells us that people on zero hours’ contracts are underpaid, don’t have the same entitlement as others and lack job security.

Whilst we‘re constantly talking about the negatives of zero hours’ contracts, we tend to forget that a large number of people actually appreciate this type of contract for a variety of reasons:

• Flexibility for parents with children;

• Flexibility for people who want towork in other places;

• Retired people who want to getout of the house for just a fewhours a week;

• Employees who receive employmentrights such as annual leave, do nothave to accept work offered;

• According to Fairwork.govCasual Employees in Australiareceive a higher hourly pay ratethan equivalent full-time or part-time employees.

We spoke to 29-year-old Nurse from London about her experience of working on a zero hours’ contract in retail part-time:

“I was extremely happy with beingon a zero hours’ contract at a large multinational retailer, as it gave me the flexibility of working in other places whilst not being tied down to one company. I worked for this

retailer for 7 years however, last year the company sent me an email to say my contract had been terminated as I hadn’t worked at the store for over a year.

“I had no written evidence to say if Ididn’t work a certain amount of time my contract would be terminated, which was appalling and not something you would expect from such a large high street retailer.”

We also spoke to another source who works at a large UK airport:

“A lot of my colleagues are on zerohours’ contracts and it suits them because some of them have children so they can choose hours to fit around their lifestyles.

“Also, some of my colleagues areretired and only want to work a few hours a week just to get them out the house, so this type of contract is perfect for them.”

There’s no doubt that many people are happy with working on zero hours’ contracts, however, employees do need to be made aware of the rules beforehand.

If zero hours’ contracts were banned, it would be difficult for older members of a company’s workforce to embrace this change, given the commitments and lifestyle choices they’ve already made.

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IS THE YOUNGER WORKFORCE LESS COMMITTED TO WORK?

UNIONS ARE UNHAPPY

Do zero hours’ contracts actually mirror the work ethic of the younger generation?

From research undertaken we found that Generation Z is much less likely to burden themselves with the types of commitments previous generations would, for example, loans and mortgages.

So, it doesn’t naturally follow that Generation Z is less committed to work, but it does mean they are more relaxed about it. This, in-turn, allows for some flexibility in their lives.

Unions have recently been voicing their concerns about zero hours’ contracts, however, whilst they were at the forefront in the 1970’s when employees expected a ‘job for life’, they’ve since declined in membership and are lacking in relevance.

The U.S. Bureau of Labour Statistics reported the percentage of wage and salary workers who were members of unions was 10.7 percent in 2016, down 0.4 percentage from 2015. The number of wage and salary workers belonging to unions, at 14.6 million in 2016, declined by 240,000 from 2015. It is evident there is a decline in membership as

unions and demographics split for membership.

The majority of workers on zero hours’ contracts are content with their hours

Acting Chief Economist at the CIPD, Ian Brinkley, speaks about zero hours’ contracts on CIPD Community and in a survey undertaken, found that around 30% of people on these contracts wanted more hours, which demonstrates that the majority are content with the hours that they work.

He also found that only 15% of people on zero hours’ contracts want a new job compared to 5% of those in other contracts.

But do unions actually represent the demographic most affected by the increasing numbers of zero hours’ contracts?

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ARE ZERO HOURS’ CONTRACTS ‘TRAPPING YOUNG PEOPLE IN HOMELESSNESS’?

The charity Centrepoint told The Independent that 16-25 year olds on zero hours’ contracts are likely to be saddled with rent arrears, forcing them to be evicted.

They claim that research undertaken suggested Landlords would prefer to take on a Tenant that was on benefits rather than someone on a zero hours’ contract due to the uncertainty of the amount of money they would earn each month.

The Independent discusses how the charity Centrepoint claims zero hours’ contracts are ‘trapping young people in homelessness’ and landlords prefer tenants on benefits

To Let

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IN SUMMARYZero hours’ contracts have always had a bad public reputation, but evidence suggests a more nuanced policy response, rather than the outright ban that some have advocated.

As the CIPD has argued, the promotion of best practice around the use of zero hours’ contracts and the treatment of zero hours’ contract workers remains a key means of addressing shortcomings while continuing to offer flexible work options for those who want them.

Employers also benefit from this approach to work, as a more flexible workforce can be called on when needed, rather than being on the payroll the entire time.

We need to stop vilifying zero hours’ contracts, and start supporting them as an alternative that provides flexible, paid employment for growing numbers of people around the world.

The job for life is out, and the flexible, global workforce is in.

A NEW START-UP BUSINESS COULD BENEFIT There’s no doubt that a start-up would benefit hugely from a workforce on zero hours’ contracts: as their business grew, they would incur lower overheads yet still have a skilled resource that you can call upon when needed. With the expectations, the younger

generations are bringing with them to the workplace, this more flexible approach fits perfectly, and takes the current demands from Generation Z for a flexible 40-hour week to a whole new level!

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Workforce Management:Hema Saves €3M in First 6 Months with REPL WFM Implementation

We quickly improved the productivity of our employees by 3 percent with JDA Workforce Management, and we lowered our costs by €3 million.

- MISCHA GIJRATH,EFFICIENCY MANAGER AT HEMA.

OBJECTIVEImprove workforce efficiency, productivity and compliance across 650 European stores.

SOLUTIONAn REPL implementation of JDA solutions:

• JDA® Workforce Management, including:- JDA® Advanced Scheduling- JDA® Time & Attendance

• JDA® Task Management

RESULTS• Reduced labour costs by €3 million• Improved employee productivity by 3 percent• Increased scheduling accuracy by 18 percent• Eliminated 200,000 hours of labour in first 6

months, without lowering customer service

THE CLIENTHEMA is a leading European retailer, with approximately 650 stores and 10,000 employees across the Netherlands, Belgium, Luxembourg, France, Germany and the United Kingdom.Founded in 1926, the company has built a reputation for its self-branded line of high-quality, low-priced housewares, home furnishings, apparel and fresh food products.HEMA decided to implement a new workforce management system in order to optimize labour costs and ensure high customer service levels, while addressing all operations that characterize a multi-category retail business across all store formats.

“At both the corporate and regional levels, we had no visibility into whether we would be able to meet our labour budget or service level from week to week,”

MISCHA GIJRATH, EFFICIENCY MANAGER AT HEMA.

“We needed to forecast our sales, labour demand and salary costs more accurately. That would enable our board of directors to adapt our staffing strategy if labour costs were increasing. At a district level, it would permit regional managers to adjust their salary costs per store to meet local budget targets.”Another goal was to encourage collaboration and best-practice sharing among employees in different regions. “The knowledge at the store level is quite high,” Gijrath noted. “We wanted to communicate with employees, as well as get their feedback.”

THE SOLUTIONHEMA conducted a rigorous process to identify the right technology solution and implementation partner for this key strategic project. The company evaluated 12 vendors before selecting JDA Software’s Store Operations suite of solutions. REPL was selected as the implementation partner, rolling out JDA Workforce Management, including JDA Time & Attendance and JDA Advanced Scheduling, as well as JDA Task Management.

THE REPL DIFFERENCEAs a leading JDA implementation partner, REPL was able to support the entire project.Our vast experience of implementing workforce management in retail businesses of all sizes ensured we were able to deliver the solutions quickly, competitively and smoothly, with the least possible disruption to Hema’s day-to-day operations.We provided project management, functional consultancy, technical consultancy and day-to-day expertise in all aspects of workforce management and system implementation.The entire project was delivered within the budget and time deadlines set by the client.

RESULTSCOST REDUCTIONHEMA achieved a full return on its investment in just six months. “We quickly improved the productivity of our employees by 3 percent with JDA Workforce Management, and we lowered our costs by €3 million,” said Gijrath. “If you look at the workforce management solution as a cost reduction program, then we’ve succeeded by more than 200 percent.”

SCHEDULING JDA Advanced Scheduling enables HEMA to match associates’ time and skills to actual store traffic.

“We’ve improved our accuracy on scheduling according to demand by about 18 percentage points, which

enables us to provide better service to our customers,”

EXPLAINED GIJRATH.

At the same time, HEMA has been able to reduce its overall employee hours. “We reduced approximately 200,000 hours, without reducing our service level, in just the first six months of our JDA implementation. We noticed that our associates were not scheduled at the right time and in the right place. Using the JDA solution, we have succeeded in improving our efficiency Cont.

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by looking at demand and adjusting our schedule accordingly, without lowering our service level,” said Gijrath.

FORECASTINGThe highly accurate forecasting engine in JDA Workforce Management is a critical contributor to HEMA’s success. “When we started the project, we chose certain algorithms that matched our business,” Gijrath said. “Nowadays, the forecasting engine on sales is off by only 1 or 2 percent. That is a really, really good result. If your sales forecasting engine predicts the sales quite well, it’s our experience that the metric that provides your labour demand is also quite good. That gives us a lot of insight into labour demand and costs, which enables us to improve our customer service by having the right people at the right time and in the right place.”

PRODUCTIVITYIn addition, JDA Time & Attendance has helped HEMA achieve better visibility into productivity.

“Today, employee scheduling is very transparent. We can see exactly which people are in the stores on a

daily basis. We can see if stores are going up or down in sales. We can rank the stores by productivity. We

couldn’t do this in the past.”

GIJRATH SAID.

HEMA can also look at its productivity level for certain departments across stores, pinpoint where there are issues and have discussions on how productivity can be improved. “For example, the food department is always very time-consuming, and we had already implemented several improvements in our daily business processes to achieve better productivity.

The JDA labour standard gives us insight into other improvement possibilities. For instance, do we still need service with pastries, or can we use self-service? Can we change the way we wrap products, or the way we check out? JDA has enabled us to start a productivity improvement program to answer these kinds of questions.”

COMPLIANCEAs HEMA establishes new employee practices, JDA Task Management helps communicate and install a consistent way of doing business. “Within the solution, there is a dashboard where you can see the compliance of stores,” reported Gijrath. “When regional managers visit a store, usually there is a lot of discussion about why people aren’t doing things in a certain way. Now we have that insight beforehand and can manage by exception.”

In all, the JDA solutions implemented by REPL have enabled HEMA to accomplish its workforce efficiency, productivity and compliance goals across all of its global stores in a rapid amount of time.

I think HEMA is a great

success story. - MISCHA GIJRATH

I have been involved in Workforce Management for nearly 15 years and for virtually the entire time, the buzz phrase has been

‘ right people, right place,

right time ’Of course, this is important and will remain an important goal for all retailers.

In terms of system scope, Workforce Management is often defined as the process of forecasting demand, scheduling employees and capturing pay information. Again, this is important and due to the competitive nature of the market there are many solutions that do a fantastic job of this.In fact, here at REPL, we have built a successful workforce practice implementing exactly that scope.

Over the last couple of years, REPL has been working with retailers to look at ways of broadening the scope of Workforce Management to help with the various customer, employee and governmental

demands. The concept of an engaged employee equalling a productive employee is now well understood, although not well executed in my opinion. However, what about inspiring employees leading to levels of engagement that are off the chart? What about redefining ‘right people’ as the process of ensuring you hire the right employees as opposed to ensuring they are scheduled efficiently?

Let’s start with inspiring employees. I believe employees become inspired when they; feel connected to an organisation, understand the short and long-term objectives and understand the part they play in achieving those goals, are rewarded well, are treated with respect and are allowed some flexibility in the way they work. Get this right and you will have an army of dedicated and inspired employees. Have an army of inspired employees and your customer service scores will go through the roof. Workforce Management can no longer just be a calculation of schedule accuracy. Ask yourself what is the point of having an uninspired workforce serving your customers? It is almost better to leave a customer to work it out themselves.

Here is an example; how many times have you been in a

restaurant and the server comes over and asks you mid meal ‘how is everything?’, I would say more often than not, they don’t really care, instead they are just following an operating process. However, when I get the sense that they really do care, then I feel connected to them and the restaurant, and will inevitably come back again.

Let’s finish with the redefinition of ‘right people’. It is hard to inspire an employee who doesn’t match your values or doesn’t have the characteristics to succeed in your organisation. What if we applied ‘science’ to the hiring of employees, what if we looked at what made a successful employee successful and hired new people based on that? I know this sounds obvious but how many of us actually look at the science of hiring as opposed to basing it on gut feel and instinct?

So, imagine a world where retailers redefined ‘right people’ to mean hiring the right people based on science, we continue to schedule and pay them correctly but, more importantly, we inspire them at work. It is time to reconsider the definition of workforce management and broaden the scope of that to meet the demands of retail head on!

It’s Time to Rethink What Workforce

Management Really IsBy Chris Love

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The Effects of the National Minimum Wage Increase

Since 1st April 2017, the National Minimum Wage has boosted leading to happier employees, but how will this hike affect retailers?

We think this rise will impact smaller businesses because larger organisations are able to make cut backs on non-essentials, while small businesses pay the price. Research undertaken by smallbusiness.co.uk found that four in ten small companies don’t make it to their fifth anniversary!

According to business experts FSB: in 2016, 99.3% of the 5.5 million private sector businesses in the UK were small – a considerable proportion.

People are so concerned with the impacts of Brexit that they don’t seem to notice other goings-on that really are affecting our economy.

The graph shows how the rate for 25’s and over has gone up significantly within the last 8 years, whereas for under 18s it’s pretty much stayed the same.

We constantly complain that we don’t get paid enough to cover the cost of living so this increase is great news isn’t it? We aren’t so sure…

Does the national minimum wage increase mean a hike in product prices, lower margins and a cut back of staff?

The UK government predicts that the national minimum wage (now called ‘living wage’) for over 25’s will increase to £9.00 per hour by 2020.

An increase in wages also means an increase in the price of products sold. Not only this, but profit margins for products may be affected and this increase could even result in businesses having to cut back on staff.

The Financial Times has reported that at least 3,700 staff have been made redundant throughout the UK as retailers find ways to save money. Retail executives admit that sharp increases in the minimum wage have added urgency to their efforts to use workers

more efficiently, by investing in technology that makes many low-skilled jobs obsolete.

At REPL Group, we have several solutions to help make processes more efficient, for example; workforce management solutions. Our systems empower employees to improve workflow and build an enhanced customer experience. Your organisation will reap the benefits - from optimising staffing levels to minimising payroll errors. Stay ahead of the game with REPL’s array of products.

To ConcludeThe Government ought to consider smaller businesses and the impacts on the economy before making major changes, while we all need to carefully consider the impact a rise in wages will have on product prices. If the national minimum wage is to increase, then let’s leave product prices as they are and focus on optimising the operation, rather than making job cuts.

Links: Smallbusiness.co.uk: http://smallbusiness.co.uk/digital-tax-remains-confusing-large-portion-small-businesses-2533942/ The Financial Times: https://www.ft.com/content/d38c30b8-0a3c-11e7-97d1-5e720a26771b (insert hyperlink)FSB: https://www.fsb.org.uk/media-centre/small-business-statistics REPL: https://www.replgroup.com/

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apprentice

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National Minimum Wage Rates 2010 - 2017

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Once we’d listened carefully to understand Costa’s needs, we set up camp in 15 stores for five days. As an independent company, we could integrate with the teams and dip below the surface of everyday store life. We used four different study methods:

1. WE ACCURATELY TIMED TASKS

We measured how long it took Costa’s people to complete in-store tasks, from brewing a Chocolate Orange Mocha to cleaning sandwich grills. Then we produced average figures. These Standard Minute Values (SMVs) help companies build labour budgets so they can set sales targets, understand how many work hours they actually need, and analyse variance across their people, stores and sites.

2. WE QUANTIFIED TIME SPENTSERVING CUSTOMERS

We looked at how baristas split their time across different types of activity and grouped them into three categories: tasks that directly served customers – like making drinks and taking payments; tasksthat indirectly supported customers – like cleaningor restocking; and time spent not working – takingbreaks or waiting for customers. We measured over

the course of the trading day and across the whole week, using a method called Rated Activity Sampling. It illustrates the pace of work in different stores, and it’s a chance to compare benchmark percentages against other companies.

3. WE SPENT A DAY IN THE LIFEOF MANAGERS

We followed in the footsteps of four store managers and three assistant managers over a seven-hour shift, to understand the split of their work responsibilities. How long did they spend serving customers and how much time did they dedicate to guiding colleagues?

4. WE WATCHED AND LISTENED

Drawing on our knowledge and experience of other retailers and industries, we made anecdotal observations during our time spent in the stores, taking note of opportunities for improvement around things like layout, equipment and communication. We recorded sound bites from team members, too, about what was working well and what wasn’t. It was an opportunity for them to speak freely and tell senior management what they’d like to see change.

CUTTING COSTS AND BOOSTING SALES:

HELPING COSTA FIND THE PERFECT BLEND

We know building a productive business relies on an understanding of the finer details. It’s about clocking the seconds spent; spotting the bottlenecks; counting the beans. So when the UK’s favourite coffee shop asked us to take a close look at their organisation, we were able to kick-start improvements in their efficiency.

If you’ve got 3,000 stores with 20,000 employees, how do you make sure you have the right number of people, serving the right

number of customers, at the right time? It’s a question that Costa had to ask when their parent company, Whitbread, brought in a new workforce management system to deal with staff scheduling. Until then, they’d never really stopped to look at how efficient their business is – and how they could improve. They needed to build a picture of productivity across their stores and find the opportunities behind the facts and figures. That’s where we came in.

WHAT DID WE DO?

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TO FIND OUT MORE ABOUT HOW WE CAN HELP YOUR BUSINESS, GET IN TOUCH WITH SIMON HEDAUX AT SIMON@RETHINKPRODUCTIVITY.CO.UK OR ON 07983 427670.

RETHINK TAILORED THEIR APPROACH TO EXACTLY MATCH OUR BUSINESS NEEDS. THEIR WORK FORMED A VITAL PART OF OUR PROJECT TO OPTIMISE LABOUR ACROSS OUR COSTA STORES, AND WE VALUED HOW FLEXIBLE THEY WERE AS THE PROJECT’S SCOPE CHANGED AND DEVELOPED.”

TONY SANDERS,PROJECT MANAGER AT WHITBREAD, COSTA’S PARENT COMPANY

HOW DID IT HELP?Because we’ve spent time on the client’s side, we know how important it is to be given practical next steps. To not only have in-depth data, but also clear advice on quick wins and longer-term strategy.

We gave Costa the information they needed to build an effective budget model. For the first time, they could accurately estimate how much to spend in stores to meet forecasted sales – and give customers a better experience.

We showed them how they could align their employee schedules with customer demand. We gave them new insights into their business. And we suggested actions they could take to improve performance. Here are just some of the ways we’ve helped set the wheels in motion:

• We found the layout of the counters was causingbottlenecks and long queues. So Costa are triallinga new design, including a customer waiting area.

• We highlighted that food took much longer toprepare than coffee in drive-through stores,which meant customers had to park. Now they’ve

introduced a new, faster panini press. Customers no longer have to wait and baristas don’t lose time walking to the car park.

• We showed that having more than one floor hasa big impact on the time it takes to completetasks. As a next step, Costa invited us back tocarry out a data survey across all their UK stores.With the information we’ve given them, theycan more equitably allocate salary funding andmeasure performance.

• We reported that communication with colleagueswasn’t always consistent, so it was difficult to keepthem up to speed about new offers. Following ourstudy, Costa have ramped up the use of mobilephones and iPads to engage their people.

Our work’s taking Costa on a journey towards better efficiency, greater productivity and happier customers. They see it as a big step forward. So much so that they recommended us to one of their sister companies, Premier Inn.

“

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Technology to Replace

People in Retail Stores?

I Don’t Think So…

Links:

Forbes: https://www.forbes.com/sites/caroltice/2014/08/14/7-fast-food-restaurantchains-that-rake-in-2m-per-store/#c3ac08dff82d

Business Insider: http://uk.businessinsider.com/chick-fil-a-is-the-most-polite-chain-2016-10?r=US&IR=T21

I have a car that drives itself (in certain circumstances!). It’s a great feature and one I use often, especially on the motorway. I do occasionally find myself choosing not to use it and instead, prefer the sensation of actually driving the car. This made me think about how ready we are to pass control of everything to technology.

I also recently read an interesting article about Chick-fil-A, who put their recent success down to training their staff to say ‘please’ and ‘thank you’. According to Business Insider they are statistically the ‘most polite chain’ in the restaurant business. You may ask; is that even an important accolade? Well, the hard numbers back up the theory. As an example, Chick-fil-A generated more revenue per restaurant than any other fast food chain in the US. According to Forbes, average store sales for Chick-fil-A topped a huge $2.85 million per store in comparison to McDonald’s at $2.5 million, and Whataburger which only made an average of $2.1 million per store.

So, what do both of these stories actually tell me? Here are my thoughts:

• People want human interaction,whether it’s driving a car or buying achicken burger. I really can’t see peoplebeing as switched on by a self-servekiosk or robot saying ‘please’ and ‘thankyou’ as a real person with genuinewarmth.

• There are certain transactions andprocesses where real people probablywon’t be necessary. Stacking shelves,driverless delivery trucks and fullyautomated warehouses spring to mind.

• I love the speed and simplicity of self-serve checkouts like the McDonald’sKiosks, however, just like my car, I likeit when technology doesn’t handleeverything for you – humans givethe experience and personal touch amachine just can’t yet do.

• Of course in reality it isn’t enough forstaff to just be polite nowadays, I alsowant that person to be informed andknowledgeable about the productsthey sell. I will give you an example; I

recently bought the latest satellite TV system and what a great product it is! The problem is, the guy installing it had no idea about how to make it work in my house. I felt sorry for him as he had been poorly trained and let down by his employers.

My point is this; technology is great; it speeds up all of our lives, and I am not suggesting we ditch it. I do however, think there is a balance to be struck. I would recommend retailers consider the following:

1. What tasks and processes don’t involveinteractions with customers and howcan technology support these?

2. Give the consumer choice. Back toMcDonald’s, I think some people love thekiosks and some people don’t.

3. Recognise that the role of the employeein retail is shifting, and therefore soare the people you need to hire. ‘Talentscience’ (ensuring you put the rightpeople in the right positions) is goingto become a key differentiatorin retail, and a big part of theworkforce landscape.

4. Engaged employees = productive andmotivated employees. Engaged andmotivated employees = a better levelof service, which in turn, drives sales.Obvious, right? Can a robot or a kioskreplace the passion a great memberof staff has for a business? I don’tthink so. Can technology help engagean employee and make them moreknowledgeable? Of course it can.

So, in summary, engaged, motivated and knowledgeable employees are going to be more important in the future. Technology won’t replace the need for people in stores, but it will fundamentally change the way we hire, train and keep people engaged.

At REPL, we have a number of technology and management solutions available which can help your business greatly in terms of efficiency, ensuring you provide exceptional customer service as well as making sure you keep ahead of the competition. If you’d like further information, give us a call on +44 (0) 844 752 0036 or fill out our online contact form, and a member of the team will be happy to assist you.

By Chris Love

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