| Most
emerging sectors that grow at breakneck pace invariably
face scarcity of manpower leading to high rates of attrition.
This has happened to the sectors like IT (software),
ITeS (BPO), and hospitality. Retail is the new sector
which is experiencing severe shortage of people, particularly
in the area of front-end manning.
As against over 35% rate of attrition in ITeS (BPO)
and around 20% rate of attrition in IT services, the
rate attrition in the retail sector could cross 80%
in a year.
Shopper's Stop, despite increase in pay packet is struggling
with 48% annual rate of front-end staff attrition. The
company decided to increase the salary packets by a
whopping 25%, with a negative effect on the profitability.
Vishal Retail, faced with an attrition rate of 35%
last year, is looking at offering ESOPS and incentives
to retain employees. Incentives may be offered on achieving
sales targets within smaller divisions or section within
a store.
Kishore Biyani owned Future Group, could achieve the
distinction of stemming the attrition to just 8.36%;
perhaps the lowest in the sector. The company has a
policy of offering incentives to the employee teams.
This annual incentive could go as high as 30 to 40%
in a year. The group's current employee strength is
around 18,000 persons, which is likely to increase this
year by another 12,000, because of expansion. Apart
from monetary benefits, the employees also receive regular
training, which helps them to 'connect' with objectives
of the group.
The highest rate of attrition of 83% is perhaps experienced
by the US based fast food chain, McDonald. In true American
style, it tries to retain people by offering them the
incentive of promotions. From becoming manager and then
consultant, they can someday even aspire to become CEO
of the company.
This is just the beginning. In the coming years, the
problem of manpower is going to only worsen as the numbers
and reach of new retail chains with deep pockets grow
further. The organised retail is projected to leapfrog
from $12 billion now to $239 billion by 2015.
Resource: www.indiaretailbiz.com
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