A study from Deloitte and the National Retail Federation finds that while retailers agree hiring, developing, and retaining top talent is essential to achieving their business strategies, efforts around attracting tomorrow's leaders among the Gen-Y generation are often lacking.
In the study, Thom McElroy, U.S. talent leader, retail, Deloitte, noted that, according to numerous findings, Gen Yers "value career progression, accelerated learning, and a work culture that matches their values." A survey of senior executives from 29 of the largest retailers in the U.S. conducted in Fall 2009 found many of these issues are "already on the radar screen for many retailers" but not as high as they presumably should be.
For instance, 41 percent of the respondents felt that their companies were not effective at helping employees develop the skills needed to move up and succeed at the next level, while half acknowledged that their organizations did not effectively map clear career paths for ambitious employees. A third felt that their organizations did not have effective succession planning.
"These deficits will especially loom large for talented, ambitious workers in today's job market," wrote Mr. McElroy. "If they see greater long-term opportunity elsewhere, they will likely pursue it."
The study also found that while 75 percent believe their compensation levels are competitive with the rest of the industry, the study's authors believe paying a "competitive" wage may not be enough when it comes to attracting and keeping talent.
"That could prove particularly problematic as retailers strive to please younger and increasingly less loyal and more opportunistic Generation Y workers," wrote Mr. McElroy.
Finally, the survey found that even in the tight labor market, respondents considered employees' increasing demands for work-life balance to be only a mid-level talent issue, based on the average score of only 3.0. The highest ranking was 5.0.
"We believe retailers who adjust their talent management strategies to Gen Y will be better positioned to tap into this crucial talent pool," said Mr. McElroy. "Retailers who do not will likely face challenges, as this group tends to be less loyal and more restless than prior generations."
Other
findings from the survey:
- Retailers ranked merchandising as the function that most needs highly talented resources, followed closely by retail operations. Merchandise planning, store associates, and finance all tied for third.
- A wide majority of executive (76 percent) cited "financial rewards and incentives" as the primarily tool for attracting and retaining high-potential employees. That was followed by offering "training and development opportunities", 69 percent; and "brand attraction", 66 percent.
- Forty-one percent do not have the human resources technology to support talent management within their organizations.
- Twenty-four percent are not tracking what key competitors are doing to
manage critical talent.
Discussion Questions: What in your opinion are the primary talent development challenges faced by the retail industry compared to other industries? How, if at all, will recruiting and developing talent have to change for Gen-Y workers versus previous generations?