Boost Retail Success: Smarter Workforce Management for Reduced Waste

Retail / 31 Oct 2024

Navigating the fast-paced retail landscape demands smarter workforce management. Rising operational costs, labor shortages, and the shift to omnichannel retail put retailers under pressure to work more efficiently. Effective workforce management not only helps minimize waste but also supports employee satisfaction and enhances productivity. This article explores essential trends driving the need for smarter workforce management and reveals how advanced WFM software like MANUS can optimize labor costs, streamline operations, and ensure the right staffing levels across retail channels

Economic uncertainty, technology, and changing consumer behaviors are all disrupting the retail industry. There’s a growing emphasis on operational efficiency, and effective workforce management (WFM) practices are key to helping retailers meet customer demands, reducing operational waste, and minimize costs. Effective WFM can also improve the employee experience and lead to improved workforce productivity.

In this article, we explore the factors driving the need for smarter WFM and how organizations can use a comprehensive workforce management solution in order to adapt and stay ahead.

The Need for Smarter Workforce Management

Several factors are driving the demand for greater efficiency in workforce management within the retail sector.

Cost Pressures

Retailers face ongoing pressure to control costs. In fact, research by McKinsey shows that 76% of European grocery retail CEOs were still concerned about challenging market conditions earlier this year, with 36% expecting conditions to worsen compared to last year. Margins have been tight in recent years, and McKinsey notes the potential to fuel profitable growth by driving efficiency savings.

With labor costs being among the most significant operational expenses, more efficient WFM practices should be a focus, helping organizations to optimize staffing levels and reduce unnecessary overtime.

Labor Shortages

Many regions are experiencing retail worker shortages, increasing the need to optimize existing staff utilization. In fact, retail is among the top 10 sectors in Europe with labor shortages, and 80% of EU employers (across sectors) are struggling to find staff with the right skills.

Deloitte reports on the fact that the European retail workforce is set to transform due to demographic changes, with working age populations set to reduce by 8 million and 12 million by 2030 in the eurozone and EU, respectively. This trend is expected to continue at the same pace in the decades to come.

Compensating for the Shortage

In anticipation, retailers are investing in labor-augmenting capabilities including automation, as well as establishing more flexible working models and doing more to attract and retain talent.

To be precise, 73% of the companies involved in the research are investing in digital transformation to a moderate or major degree, with a view to improve operational efficiency as well as the customer experience. Companies considered as ’leading’ were more willing to invest in automation and upskilling than the two thirds of respondents below them.

64% expect labor shortages to have a detrimental impact on the customer experience, which was one factor driving such changes.

Omnichannel Retail

With retailers operating across multiple channels, they need more sophisticated workforce planning to align staffing with demand across channels. What’s more, the increased demand for online shopping sparks the need for a better in-store experience.

This requires more knowledgeable staff capable of offering expert advice; adequate staffing levels to ensure customers receive prompt attention; and staff trained in both product knowledge and in-store digital tools to bridge online and offline experiences.

Waste in Workforce Management

As well as the current challenges discussed above, there is always the need to remove waste from WFM. Waste typically stems from overstaffing and understaffing, both of which can have significant financial implications and impact customer satisfaction.

Having more employees on the floor than necessary can lead to higher labor costs without delivering proportional benefits in customer service or sales, while a lack of employees during peak periods can result in long wait times, poor customer experiences, and missed sales opportunities.

Effective workforce management helps eliminates these inefficiencies through technology that provides accurate demand forecasting and adaptive scheduling.

The Future of Workforce Management Software in Reducing Waste

WFM software leads to streamlined processes and less time spent on administrative tasks – but that’s the tip of the iceberg. The future of WFM lies in using data-driven insights and automation to optimize every aspect of staffing. Today’s advanced software handles much more than attendance tracking, absence management, avoiding scheduling conflicts, and so on; here are some ways it can assist.

Smart Employee Scheduling

Optimized scheduling ensures that the right number of employees are in the right place at the right time. For example, predictive algorithms within WFM platforms enable labor forecasting, assessing when a store is likely to be busiest and when there’s less foot traffic. It can then create schedules that reflect these patterns.

The ability to adjust schedules in real-time also allows retailers to accommodate unexpected changes, such as a surge in customer traffic or an employee calling in sick.

This approach reduces the risk of over or under-staffing and improves employee satisfaction. What’s more, when employees are scheduled according to their preferences and availability, it reduces the likelihood of burnout, improves morale, and contributes to a more positive working environment.

Flexibility

Flexible scheduling tools are becoming essential for retailers to accommodate employee availability while ensuring adequate staffing during peak periods. Workforce management software can facilitate this by allowing employees to swap shifts or request time off easily through self-service portals.

WFM software also makes it easy to schedule for a broader contract mix, helping provide greater customer satisfaction.

Automated Compliance Management

Retailers must navigate a complex web of labor laws, including regulations around working hours, overtime pay, and break periods. Automating compliance management is yet another way to improve efficiency, ensuring that schedules adhere to these regulations while maintaining flexibility and agility.

Workforce management software can automatically flag potential compliance issues, such as employees being scheduled for too many hours without the required breaks, and offer suggestions for adjustments. This saves HR teams time and reduces the likelihood of costly errors.

Optimizing Staff for Omnichannel Demands

With the help of workforce planning software, retailers can create integrated staffing plans that account for both in-store and online demands. For example, an employee might spend part of their shift handling in-store customers and the rest fulfilling online orders. Using data to balance these roles effectively, organizations can ensure they are meeting customer expectations without overloading their staff.

In addition, cross-training employees to handle multiple functions (such as working the sales floor, managing customer inquiries, and processing online orders) improves efficiency and flexibility, ensuring that staffing resources are utilized to their full potential.

Supporting Upskilling

Modern workforce management solutions can support retailers in meeting the development needs of their employees by analyzing performance metrics. From there, they can identify areas where additional training may be beneficial. In turn, this enhances efficiency and customer service quality, and boosts employee engagement by supporting the development opportunities they seek.

How Our Enterprise Workforce Management Software Can Help

MANUS WFM offers a comprehensive solution to address the evolving needs of retail workforce management:

Data-driven scheduling: Our software uses sales data to optimize staffing levels, ensuring the right number of employees are scheduled during peak and slow periods. It also ensures schedules meet cost targets, and with automated alerts, schedule changes are managed promptly, minimizing the need for costly, last-minute arrangements.
Effective communication: The Employee Self Service App provides flexibility and facilitates clear communication between managers and staff so that everyone stays informed about schedule changes and related updates.
Cross-branch optimization: MANUS WFM enables retailers to streamline operations across multiple locations, from retail stores to logistics centers.
Employee development: Our system helps identify training needs based on performance metrics, supporting cross-training initiatives across different roles and departments
Compliance management: MANUS WFM has an advanced compliance engine, helping retailers stay in line with labor regulations. It manages by exception, reducing the efforts required of your HR team.

Conclusion

The future of WFM in retail is about working more efficiently. The ability to be flexible makes organizations resilient when economic challenges arise by ensuring that labor costs are optimized when margins are tight.

With an advanced workforce management system like MANUS WFM, retailers can navigate the complexities of modern retail operations, meet customer expectations across all channels, and create a more engaged and productive workforce.

To learn more about how it can reduce your labor costs by up to 10%, contact us today to request a demo.

Optimize workforce efficiency with smarter workforce management by MANUS. Stay ahead of retail demands. Contact us today to see how our software can reduce labor costs by up to 10% and elevate your retail operations.

Overcoming Resistance: How to Drive Technology Adoption in Your Workforce

WFM / 09 Oct 2024

Adopting new technology can be challenging, especially when employees resist change. In this article, we explore proven strategies to overcome resistance and drive successful technology adoption. From leadership involvement to employee engagement, we cover all the essentials for smooth transitions.

Welcome to the third installment of our change management series. In part one, we explored the reasons people resist change, while part two examined how different generations respond to change. Despite some differences, we found that strong leadership, effective communication, and a clear understanding of the reasons for change are universally critical in overcoming resistance.

In this article, we’ll focus on practical strategies organizations can use to help employees embrace new technologies and mitigate resistance to change. Whether you’re introducing a new workforce management system or any other technology, these steps will help guide your transition.

Communicate a Clear Vision and Benefits

One of the biggest reasons employees resist change is uncertainty about the benefits. Why would they want to disrupt familiar processes without good reason?

To overcome this, it’s vital to clearly communicate both the vision and benefits of the new technology.

Connect it to the broader company goals. Employees need to see how their role fits into the bigger picture and how the new technology helps achieve these objectives.
Show personal benefits. Especially for frontline employees, it’s essential to emphasize how the new tool will directly improve their daily tasks, such as speeding up workflows or making their jobs more meaningful.

Failing to explain the relevance of the technology could have consequences. Research from Gartner shows that 63% of employees stop using technology they feel is irrelevant to their work.

Key Takeaways:

Use multiple channels to communicate, including meetings, emails, and informal discussions.
Tailor messages to specific departments or employee groups to make the benefits feel personal.

Get Leadership on Board

A lack of support from leadership can derail even the best change initiatives. For employees to buy into the change, they need to see their leaders fully committed.

Steps to ensure leadership support:

Visible leadership involvement: Executives and managers should be vocal advocates for the new technology, reinforcing its importance and demonstrating its use.
Lead by example: Leaders should actively use the technology themselves to signal their buy-in. This builds trust among employees and encourages them to follow suit.
Create a Leadership Communication Plan: Develop a structured plan where leadership regularly communicates updates, celebrates wins, and addresses concerns. This keeps everyone aligned and reassures employees that the change is under control.
Train Leaders: Provide specialized training for leadership on change management strategies, so they are well-equipped to support their teams during the transition.

Involve Employees in the Change Process

Change initiatives are more likely to succeed when employees are involved from the start. In fact, Gartner research shows that involving employees can increase the success rate of change initiatives by 15%.

Ways to engage employees:

Here are some options for getting employees involved:

Create cross-functional teams: Representatives from various departments can test the new technology and provide feedback, becoming advocates for the rest of the company.
Pilot programs: Roll out the new technology to a small group first. Early adopters can then help address concerns and promote the benefits.
Feedback loops: Encourage employees to provide feedback during the process. Make adjustments where possible based on this input.

Provide Comprehensive Training and Support

Proper training is essential to easing technology adoption. Without it, employees may feel overwhelmed or underprepared, leading to increased resistance.

A 2024 report by Whatfix found that 33% of employees received less than an hour of training during a software implementation, and 78% felt they lacked the expertise to fully utilize the technology. These numbers highlight how crucial comprehensive training is to success.

Best practices for training and support:

Role-based training: Tailor training to specific roles so that employees only learn what’s most relevant to their day-to-day tasks.
Ongoing learning opportunities: Offer refresher courses and resources that employees can access whenever they need support.
Create a support network: Establish ‘super users’ who are well-trained on the new technology and can offer peer-to-peer assistance.

Make the Change Incremental

Change can be overwhelming if introduced all at once. A more effective approach is to break the process into manageable steps, allowing employees to gradually adjust to the new system.

Phased Implementation: Start with the most critical features or roll out the system department by department. This allows employees to familiarize themselves with the new technology without feeling overwhelmed.

Iterative Improvements: Collect feedback throughout the implementation process and make adjustments as needed. This shows employees that their input is valued and helps ensure the transition runs smoothly.

Use Data to Drive Adoption

Data is your ally in monitoring how well the new technology is being adopted and where additional support may be needed. Tracking key performance indicators (KPIs) provides concrete evidence of the benefits, encouraging employees to stay engaged.

Metrics to track include:

Usage and performance: Measure how frequently employees are using the system and how efficiently they complete tasks.
Engagement rates: Track how often employees log in, how long they spend in the system, and which features they use.
Productivity gains: Monitor improvements in workflow efficiency and reduced manual tasks.
Employee satisfaction: Gather feedback to see how the new technology impacts job satisfaction.

Keep employees informed about these metrics, especially early wins that demonstrate how the technology is helping.

Anticipate and Pre-empt Resistance

Lastly, anticipating resistance and planning for it can make a world of difference. Conduct a stakeholder analysis to identify potential objections from different groups and prepare targeted strategies to address their concerns.

Also use data to identify where employees are struggling. If certain departments or individuals are lagging in adoption, this may indicate a need for additional training or support.

Metrics to identify struggles include:

Low adoption rates in specific departments or teams
High error rates or frequent support tickets from particular user groups
Longer task completion times compared to benchmarks or pre-implementation data
Underutilization of key features
Negative feedback or low satisfaction scores from specific groups.

By being proactive, you can minimize issues before they escalate.

Motivation, Ability & Prompts

In the first part of this series, we looked at the Fogg Behavior Model, a popular theory that explains the components of behavior and how to leverage them to create change.

Throughout this article, we’ve discussed several tactics that align with the model. For example, communicating the benefits will boost motivation, while providing training and support, and implementing change incrementally, target the ‘ability’ part of the equation. Making sure support resources are easily accessible is another key.

As for prompts, use reminders and notifications within the new system (or through other channels) to encourage regular use. Use email campaigns or other forms of internal communication to share tips, updates, and reminders about the technology, and use the ‘super users’ mentioned earlier to provide peer-to-peer prompts.

Conclusion

Overcoming resistance to technology adoption doesn’t happen overnight, but with the right strategies, it’s possible to ease the transition. To summarize:

Communicate the benefits clearly and consistently.
Get leadership actively involved and supportive.
Engage employees in the change process.
Provide thorough, ongoing training.
Implement the change incrementally, and use data to guide adoption.

At MANUS, we specialize in helping organizations manage workforce changes smoothly with our cutting-edge software solutions. Contact us today to see how we can help you make your next technological transition a success.

Ready to overcome resistance and drive successful technology adoption? Contact MANUS today to learn how our workforce management software can help your organization embrace change effortlessly.