Retailers urged to focus on ‘people’ investment

Amid a very tough year, Philippine retailers are urged to invest on retaining the right people to man the business and keep afloat even during the toughest times the industry may face.

If in the past, the very important proposition of a retail business is “location”, today, the environment has changed, and location may not be an important advantage for retail business to succeed, but employing good people is now the key to a profitable retail business, amid the tough and very competitive environment.

Rodolfo Ang, Dean for John Gokongwei School of Management said the trend of retail industry now, is to put serious attention on sustaining very good and skilled people who are usually at the forefront of the business.

Now, consumers are becoming more sophisticated, very good communicator, and customer friendly sales persons are very important to keep. Unfortunately, he said the retail sector is now suffering from taking the leftovers in terms of manpower issue, as qualified, good people are attracted to high paying jobs in Business Process Outsourcing (BPO) as well as attractive employment offers abroad.

“Manpower is a very important force to consider. Pay your people higher in order to keep them. Don’t cut cost on the pay of people,” he said, stressing that if an employer chose to cut operation cost on salary or benefits, he cannot keep good people to man the business.

He said the biggest retail chain are even affected by the very fast turnover rate of people going to high-paying jobs especially BPOs, while others opt to seek employment in other countries.

“We need people who are good in customer service skills. These skills are also in-demand in call center industry and accommodation establishments abroad,” he said.

Providing good “take-home-pay” is now the “name of the game” in order to sustain the retail business, while it is suffering from very weak consumer demand, due to higher prices in fuel and food.

“Many of us lost our [good] manpower to BPO industry and overseas offers. They make our stores as schools to gain employment abroad and in high paying BPO companies,” Ang told retail players in Cebu during the 2nd Philippine Retailers Association Regional Conference held over the weekend at The Parklane Hotel.

For his part, PRA president Jorge Mendiola said that with the pressure of increasing the minimum wage, PRA may soon release an advocacy to support “reward system” in compensation. – Ehda M. Dagooc