What if the logic behind viewing retail labor as an expense to be cut, rather than as an asset to be invested in, is unsound? Zeynep Ton, a Professor of Operations Management at MIT’s Sloan School of Management, argues just that. Her research has shown that by underinvesting in their employees, retailers are actually making their operations much more inefficient, and therefore much less profitable.
After studying this topic for ten years, Ton has consistently found that companies that buck the status quo and invest heavily in their workforce actually are able to not only compete with their competitors on service but on price too.
Running a modern retail store is an incredibly complex task. The reason retailers Ton studied were able to spend much more on labor and still compete on price is that there are all sorts of efficiencies that become unlocked once you have a highly trained, highly motivated workforce.
While investing in human resources may have always been a good strategy, it is one that is more important now than ever for brick-and-mortar retailers. The headlong rise of e-commerce has put extreme pressure on retailers to become more efficient, and to justify their existence to customers. Those who want huge selection, low prices, and no service can find that online, without the hassle of leaving their living rooms.
The retail landscape is increasingly dominated by stores that have adapted to this new reality. Retail success stories like Lululemon and Apple have highly trained, engaging and engaged sales associates who offer a unique expertise that will motivate a shopper to eschew the convenience of the Internet shopping for a traditional brick-and mortar experience.
I hope +Best Buy is listening.
Future of Retail: Companies That Profit By Investing in Employees
Research has shown that by underinvesting in their employees, retailers are actually making their operations much more inefficient, and therefore much less profitable
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After studying this topic for ten years, Ton has consistently found that companies that buck the status quo and invest heavily in their workforce actually are able to not only compete with their competitors on service but on price too.
Running a modern retail store is an incredibly complex task. The reason retailers Ton studied were able to spend much more on labor and still compete on price is that there are all sorts of efficiencies that become unlocked once you have a highly trained, highly motivated workforce.
While investing in human resources may have always been a good strategy, it is one that is more important now than ever for brick-and-mortar retailers. The headlong rise of e-commerce has put extreme pressure on retailers to become more efficient, and to justify their existence to customers. Those who want huge selection, low prices, and no service can find that online, without the hassle of leaving their living rooms.
The retail landscape is increasingly dominated by stores that have adapted to this new reality. Retail success stories like Lululemon and Apple have highly trained, engaging and engaged sales associates who offer a unique expertise that will motivate a shopper to eschew the convenience of the Internet shopping for a traditional brick-and mortar experience.
I hope +Best Buy is listening.
Future of Retail: Companies That Profit By Investing in Employees
Research has shown that by underinvesting in their employees, retailers are actually making their operations much more inefficient, and therefore much less profitable
0 0 Powered by socialditto What if the logic behind viewing retail labor as an expense to be cut, rather than as an asset to be invested in, is unsound? Zeynep Ton, a Professor of Operations Management at MIT’s Sloan School of Management, argues just that. Her research has shown that by underinvesting in their employees, retailers are actually making their operations much more inefficient, and therefore much less profitable.
After studying this topic for ten years, Ton has consistently found that companies that buck the status quo and invest heavily in their workforce actually are able to not only compete with their competitors on service but on price too.
Running a modern retail store is an incredibly complex task. The reason retailers Ton studied were able to spend much more on labor and still compete on price is that there are all sorts of efficiencies that become unlocked once you have a highly trained, highly motivated workforce.
While investing in human resources may have always been a good strategy, it is one that is more important now than ever for brick-and-mortar retailers. The headlong rise of e-commerce has put extreme pressure on retailers to become more efficient, and to justify their existence to customers. Those who want huge selection, low prices, and no service can find that online, without the hassle of leaving their living rooms.
The retail landscape is increasingly dominated by stores that have adapted to this new reality. Retail success stories like Lululemon and Apple have highly trained, engaging and engaged sales associates who offer a unique expertise that will motivate a shopper to eschew the convenience of the Internet shopping for a traditional brick-and mortar experience.
I hope Best Buy is listening.
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After studying this topic for ten years, Ton has consistently found that companies that buck the status quo and invest heavily in their workforce actually are able to not only compete with their competitors on service but on price too.
Running a modern retail store is an incredibly complex task. The reason retailers Ton studied were able to spend much more on labor and still compete on price is that there are all sorts of efficiencies that become unlocked once you have a highly trained, highly motivated workforce.
While investing in human resources may have always been a good strategy, it is one that is more important now than ever for brick-and-mortar retailers. The headlong rise of e-commerce has put extreme pressure on retailers to become more efficient, and to justify their existence to customers. Those who want huge selection, low prices, and no service can find that online, without the hassle of leaving their living rooms.
The retail landscape is increasingly dominated by stores that have adapted to this new reality. Retail success stories like Lululemon and Apple have highly trained, engaging and engaged sales associates who offer a unique expertise that will motivate a shopper to eschew the convenience of the Internet shopping for a traditional brick-and mortar experience.
I hope Best Buy is listening.
Future of Retail: Companies That Profit By Investing in Employees
Research has shown that by underinvesting in their employees, retailers are actually making their operations much more inefficient, and therefore much less profitable
Powered by socialdittoResearch has shown that by underinvesting in their employees, retailers are actually making their operations much more inefficient, and therefore much less profitable
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