TheRetailer_Summer_19

Solving the unplanned absence equation

NEIL PICKERING MANAGER OF INDUSTRY AND CUSTOMER INSIGHTS IN EMEA Kronos Incorporated

HOW ADVANCED WORKPLACE TECHNOLOGY CAN IMPROVE MORALE, BOOST THE BOTTOM LINE, AND KEEP CUSTOMERS COMING BACK FOR MORE For any business, the consequences of unplanned absence can be a significant drain on employee productivity and the bottom line, especially with so many retailers feeling the squeeze in such a challenging time. More than ever, retailers need to explore every avenue in order to retain their workforce and cultivate an exceptional customer experience — but without a present, engaged workforce, this becomes extremely difficult. According t o a recent survey by The Workforce Institute at Kronos Incorporated, retail managers across the globe revealed that last-minute absenteeism leaves their stores understaffed a quarter of the time, while more than half of retailers surveyed (52%) cited unplanned absence as one of their organisation’s most difficult, complex, and time-consuming issues. In the U.K. specifically, more than half (53%) of retailers are given less than three hours’ notice when an employee is not going to show up for work, and close to half (44%) of these retailers report their absenteeism striking hardest on the weekends. From holiday breaks, to seasonal vacations, and unexpected social moments in time such as the Game of Thrones finale, it can be difficult to account for when — and why — employees might call out from work without advanced notice. However, there are steps that retailers can take to relieve the burden that absence creates on their workforce and reduce the likelihood of unplanned absence altogether. Recognise the impact of unplanned absence on store success and staff morale Across countries, headcounts, and sectors — from groceries and warehouses to department stores — the challenges posed by unplanned absence are universally felt and can directly impact a store’s bottom line: At least one in 10 in-store labour hours budgeted is essentially “wasted” due to staffing misalignment resulting from absenteeism. Retailers have long been working to get ahead of the absence curve. Particularly as organisations begin to prepare for the upcoming holiday shopping season, it’s not uncommon for managers to proactively overschedule a busy shift in anticipation that associates may call out. However, without accurate and actionable data to inform when and where additional staff support will be needed, overscheduling can often lead to wasted labour hours — both for managers and their staff, who ultimately feel underutilised and unchallenged. But the opposite can be just as corrosive: If managers don’t overschedule, they run the risk of depleted coverage and vacant shifts, creating unnecessary stress for store managers who are trying to optimise schedule hours and reduce the risk of overtime among their associates. Filling shifts on such short notice also leads to at least one in four retailers working at least half the time with staff that have the wrong or lack of skills. Not to mention, tapping into overtime and increasing individual workloads can swiftly impact morale of current employees — in fact, they’ve been found to be two of the three largest contributors to burnout.

Reduce unplanned absence with strategic workforce management Identifying the root causes of unplanned absence can be tough, and even when retailers know what can help to address the issue, they aren’t always taking advantage of it in their own organisations. Only 55% of retailers worldwide — and just 41% in the U.K. — have technology in place to help manage unplanned absence compared to three-quarters of retailers using automated technologies to track time and attendance (76%) and manage planned absence (73%). And although more than half (59%) of retailers worldwide believe scheduling technology has a positive impact on staff productivity, 28% are still using either spreadsheets or pen and paper to manage staff schedules. It’s clear that retailers are embracing at least some workforce technology, but increased adoption of solutions that specifically mitigate and manage unplanned absence would further enable managers to improve retail performance. Building accurate demand forecasts, creating stable schedules that promote strong teams, assigning shifts based on associates’ preferred availability and roles, and automating shift-swapping approvals to ensure real-time coverage for vacant shifts would reduce manager administration burden, improve sales performance and engage employees. The good news? These solutions are already here — and they’re getting smarter, thanks to the incorporation of AI (artificial intelligence). Recent innovations in workforce management technology can meet modern expectations of workers and provide associates with self-service, mobile-friendly and device-agnostic solutions to request time off, swap shifts, confirm their schedule preferences, view holiday and time balances, and record time and attendance. It’s no surprise that employees who can select shifts that fit their needs without manager intervention are less likely to call out at the last minute. And, as a bonus, data gathered by these solutions enable patterns of attendance and activity to be visualised, giving managers early insight into potential issues with staff that can be addressed – thereby helping to sustain performance and customer service. Solving the unplanned absence equation can significantly reduce operating costs; the key is to empower employees with technology that enables them to manage their work schedules to accommodate flexibility and preferred availability while still delivering the coverage required by their employers. This in turn allows managers and teams to optimise productivity and cultivate a great customer experience. Retailers have the opportunity to deliver a differentiated customer experience by first delivering a differentiated employee experience. By embracing next-generation workforce management technology not only to plan shifts accurately and fairly,but also use AI-driven labour forecasting to intelligently predict when more or fewer employees will be needed, retailers can ensure their staff remain happy and motivated with schedules that harmoniously balance their individual needs with the needs of the business. Enhance the employee experience, see better business results

8 | summer 2019 | the retailer