Wanted! Skilled retail manpower - Retail industry expected to create 80 lakh jobs in next 6 years

The cultural mindset and education system of our country makes it difficult to get skilled manpower in the retail sector. There are hardly any dedicated institutes in India that address the issue of this ever-widening gap between employee demand and supply. Furthermore, believes Sanjeev Duggal, there is an immediate need not only for formal education but also for practical job skills so as to make human resource functional on the very first day of work The profile of the Indian consumers is changing rapidly. They are now richer, younger, have higher aspirations, and demand value for every rupee they spend. It is this new breed of consumers that the Indian retailers are targeting, resulting in a boom in the Indian retail market. Estimated at US $ 200 billion (Rs 9,20,000 crore) the Indian retail industry is the fifth most attractive emerging retail market in the world. The organised part of the Indian retail sector amounts to 3 per cent, or US $ 6.4 billion (Rs 29,440 crore), and is expected to grow at 25 to 30 per cent annually. It is projected to reach US $ 23 billion (Rs 1,05,800 crore) by 2010. This boom is expected to create 80 lakh jobs over the next five to six years. Such figures often give rise to the important question, "Where is the skilled manpower for this industry which is growing by leaps and bounds?" With half of India's 1.2 billion population aged below 25, shortage of manpower in the retail sector seems to be highly ironical, but a fact nonetheless. According to a KPMG-FICCI study (January 2006), the Indian retail industry is set to face critical manpower and capacity shortage in the face of the rapid growth projected for it. The attrition levels, which currently are low compared to global standards, will rise in the coming years as the war for talent across the industry intensifies and modern retail expands. The cultural and social mindset of our country makes it even more difficult to motivate the youth to enter the retail sector. Added to that, the education system is not geared towards training potential employees in this area. The education system has done precious little to address this changing paradigm and demand in business. These factors have led to skilled manpower shortage in this sector. And the irony of the situation is that India has over 40 lakh unemployed graduates at a time when employers are desperate for talent! What we need are more institutes dedicated to retailing in India to address this ever-widening lacuna. And, importantly, formal education in retailing should involve training students in practical job skills so as to make human resource functional at the first day of work. Presently the gap lies in finding people with the right skill-sets, like customer orientation and selling, which is critical. This problem exists in both in-store and non-store resources available in India. Though senior managers from the FMCG sector are quick to learn and adapt to the demands of retailing, and can still address the gap in the managerial cadre, some still lack the competency levels expected of them. Also, supply chain and customer relations followed by merchandising, facilities management and vendor development are areas that need to be addressed. With an ever-changing environment and rising competition, it has become essential for the employer to provide constant learning to their staff members, and to go that extra mile to keep them motivated. This is because "the quality of service that customers receive from the staff never exceeds the quality of service that the staff receives from the manager". It is time to invest in people, not only because the single largest cost for a retailer is the manpower cost, but also because people are the infrastructure of the retail industry. Proactive training of employees will play a key role for Indian retailers and become a competitive differentiator, given the resource and competency shortage in India. Global players have their training strategies in place, like Costco, which has Costco University; McDonald's has its Hamburger University; and Coca Cola has Coke Academy for Retail Excellence. As a result of training, employees develop a greater sense of self-worth and well-being, as they become more valuable to the firm and to society. Usually, they receive a greater share of the material gains that result from their increased productivity. These factors give them a sense of satisfaction, having achieved their personal and corporate goals. Training also makes an organisation well-equipped to keep pace with the fast changing dynamics of business. As the KPMG-FICCI study points out, "Indian retailers need to develop a combination of good HR practices to enhance competency and retention while simultaneously developing processes and systems to ensure that high people turnover does not disrupt operations."