Webinar: HUMAN RESOURCE MANAGEMENT FOR RETAIL CHAINS IN THE DIGITAL TRANSFORMATION ERA

On March 13, 2021, 1Office, in collaboration with HSM, successfully organized the webinar “Human Resource Management for Retail Chains in the Digital Transformation Era.” The program featured insights from three guest speakers: Ms. Tran Thi Thu Hong – Human Resources Director of Golden Gate Group; Mr. Nguyen Viet Hoa – Chairman and CEO of YODY Fashion; and Mr. Le Viet Thang – CEO of 1Office, along with the enthusiastic participation of over 120 leaders, managers, and HR specialists from various businesses and industries.

1. Trends and Characteristics of Personnel in Retail Chains

During the webinar, Ms. Tran Thi Thu Hong – Human Resources Director of Golden Gate Group, shared: People play a crucial role in any industry or field, especially in chain-based service businesses. This is a core element that no technology can replace. Essentially, people are the ones who interact directly with customers, deliver the company’s values to them, and directly influence satisfaction levels and whether customer return rates increase or decrease.

Although personnel play such an important role, the turnover rate in retail chain businesses is very high. According to specific statistics, the average employee turnover rate in the F&B industry is 80-90%, and this rate is 72% in the US. This rate is predicted to continue to rise due to the nature of the work in the industry and labor competition both within and with other sectors.

Ms. Tran Thi Thu pointed out 05 human resource management trends for 2021:

– Focusing on employee experience

– Investing in employees’ mental health

– Designing and transforming training content and methods

– HR data is a crucial factor for decision-making

– Businesses are doubling down on digital transformation

So, in chain businesses, what is the most critical factor in determining service quality?

2. HR Challenges for Retail Chain Businesses

2.1. Lessons Learned from YODY’s Story:

With over 06 years of building and achieving breakthrough development, Mr. Nguyen Viet Hoa – Chairman and CEO of YODY Fashion, has drawn out 07 development solutions for retail chains that YODY has been successfully applying.

– Choose the right people with shared motivation, vision, and goals (people first, work second)

Recruitment must be implemented effectively and correctly from the very beginning. It’s essential to find people who are a good fit for the company, align with the organizational culture, and have a high level of commitment. Only then can the team stay for the long haul, ready and always dedicated to the organization in any circumstance or difficulty.

– The mid-level management team must be decisive, strong, and diligent in everything they do:

In the early stages, a business may face many difficulties in recruiting and finding talent. However, the smaller the business, the harder it must try, exploring all methods, working passionately, always thinking of solutions, never giving up, and never blaming the company’s size. It’s important to understand that all outcomes depend on whether one has tried and made enough effort.

Proactively learn and draw experience from other large companies to find solutions for yourself.

– Educate first, train later:

For new employees, much like a “new bride joining her husband’s family,” a gentle approach is needed. Helping them acclimate to the work environment should be the top priority. Set aside discussions about work performance and KPIs; in the first few days, we need to share our company’s culture.

For example: Why does YODY exist? What is YODY’s mission, vision, and the company’s general direction? Why should you contribute to YODY and not another organization? ….

In training, there is always someone to guide and instruct, but never to do the work for them or cover up mistakes. After each probationary period, the evaluators will be those who work closely with the employee to ensure objectivity and fairness.

– Mindset for inter-departmental & divisional collaboration:

(Back-office provides maximum support to the front-line, reducing non-revenue-generating activities)

The first principle in inter-departmental collaboration is that information must be transmitted quickly, timely, and accurately.

There are two main types of customers: External customers using the service (the customer is #1) and internal customers (superiors, subordinates, other departments, etc.). Work collaboratively with a service mindset, figuring out how to help your collaborators spend the least amount of time, with fewer procedures, saving effort and money, while still ensuring the work gets done.

The perspective is that the back-office (office) must serve the front-line (direct sales). All tasks, from paperwork and approvals to processes, need to be streamlined and simplified as much as possible to effectively support the front-line in their business operations.

Anything that doesn’t reach the lower-level teams or doesn’t serve and support the front-line should not be done.

All non-revenue-generating activities should have their time reduced and be streamlined.

Don’t argue about right or wrong, don’t place blame; instead, focus on analyzing how to serve better.

– Use a technology platform to optimize the entire workflow and transmit information effectively. Yody has succeeded by using the 1Office software in its operations.

Use an internal social network and other tools to transmit information quickly, timely, accurately, and completely.

An effective information transmission system is needed to avoid information loss. Use supporting tools and technology platforms to ensure information reaches everyone, requiring confirmation and commitment to implementation from the staff.

– Empower mid-level managers:

Empowerment is both a way to cut down on complex processes and a way to motivate and increase the team’s commitment to the company and organization.

Reduce monitoring, competency assessment, and performance evaluation activities, allowing employees to focus more on business activities and serving customers more effectively.

– Always care for, guide, and encourage one another:

This is one of the most crucial factors in retaining talent. Even if salary, bonuses, and benefits are not highly competitive, regularly caring for employees’ mental well-being, and always providing dedicated guidance and encouragement, creates a powerful bond.

This helps employees always feel happy, fulfilled, and cheerful, making them feel like they are coming home, where they can be most comfortable and do their greatest work.

2.2. Lessons Learned from Golden Gate’s Story:

The Impact of Covid-19 on the F&B and Service Industries:

– F&B/services were impacted the earliest, most strongly, and suffered the greatest losses.

The opportunity for a quicker, faster recovery is due to a young population with high social engagement and diverse, modern dining needs.

– Market