Is HR the lifeline for retail chains in a recession?

There are HR departments, and then there are HR departments.

HR has traditionally been a department that has existed somewhat in parallel with the rest of the business. When we have asked why, the reasons have been:

• "They don't have their own profit responsibility"
• "They are a support function"
• "They only work with soft values"
• and so on.

HR unlocks competitive advantages

Given the level of competition in retail today, we would argue the opposite – HR is actually the department with the greatest potential to drive profitability in both the short and long term.

HR works with the people, and the people are one of the best assets you have for differentiating yourself from your competitors.

• It is the staff who help customers and sell to them.
• It is the staff who ensure high campaign execution rates.
• It is the staff who give customers a fantastic experience. This increases conversion rates, raises the average transaction value, and creates more loyal customers.
• It is the staff who create your vibrant and winning culture. A great culture will attract better employees who stay longer.

But this only holds true if the staff have the tools they need to do their job optimally. And only if the staff are engaged and want to do their job optimally.

Who is it that works with the people again?

HR has an obvious place in the retail chain's leadership team

Not having HR in the leadership team today brings to mind the scene from Top Gun: when the Admiral dresses down Maverick and Goose with the famous line, "Son, your ego is writing checks your body can't cash."

The HR department of course also has a responsibility here. They need to step up and take on this role by familiarising themselves with the business goals and the needs of the sales and marketing departments. They also need to understand the challenges facing regional and store managers. In order to understand what tools they can offer.

We can see that just in recent years, a lot has already changed in this regard. For many retail chains, HR already has a clear and central role in driving business and profitability. Some others still have some work to do.

There are HR departments, and then there are HR departments.