Retail Employment Insight Report 2012


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Retail Employment Insight Report 2012

  1. 1. RetailEmploymentInsightREPORT
  2. 2. Survey Methodology 2 The retail sector represents 10% From this, an estimate of the median of the total UK job market, employing salary for each category in roughly 2.6 million people each year is made separately for London and regions outside of Sample size – 427,277 job adverts London combined placed on between January 2007 and To avoid distortions due to a change December 2011 in the job mix the job category mix in 2011 was used in all years to All data is compiled by Marriott estimate the trend in salaries. Statistical Consulting in March 2012 For example, more management jobs in 2011 compared to 2010 would The median salary was calculated in cause the median salary to rise even each year and region if both managers and non-managers suffered a small fall in salary, Each job title is allocated to just one since managers are paid more than job category
  3. 3. Foreword 3 “The economic downturn has led to a far more defined polarisation of buying behaviours”With the continued economic upheaval to value brands for their day to day then adapting both in terms ofin the Eurozone and closer to home items and purchasing one-off premium operating strategy but also in the wayin the UK, coupled with high profile goods for a touch of luxury. they recruit.bankruptcies such as Peacock’s,Game and Jane Norman you could be Some have called this phenomenon Digital specialists and those whoforgiven for thinking that jobs in the the ‘flight from the middle’. This are proficient in softer customerretail industry are in a permanent state change has undoubtedly had an experience skills will undoubtedlyof decline. With this report we set out to impact on retail brands and goes some become ever more sought after asunearth whether this is in fact the case. way to explaining why retailers such brands look to capitalise on the as Tesco’s, Morrison’s and Sainsbury’s predicted economic green shootsAs the largest specialist retail jobs continue to recruit, whereas brands appearing in the coming months.board in the UK we have access such as Mothercare are unrivalled historical data on the This is the first RetailChoice.comnumber of positions being advertised The other significant change that has trend report and our intention is toand the applications per post across had a massive impact on retailer’s produce them on a half yearly basis.every sector of the UK retail industry. strategy is the ubiquity of technology. I hope you enjoy reading this insight With consumers increasingly turning and if you have any feedback pleaseFor me, the most striking thing is to their smartphones or laptops do get in touch.the effect that wider societal changes to complete retail transactions wehave had on the retail jobs market. have seen a significant growth in the Neil BrodieThe economic downturn has led to number of specialist technology and Sales Director, RetailChoice.coma far more defined polarisation of marketing roles being advertised,buying behaviours. particularly for head office roles. For retailers the key to success willConsumers looking to get the most out be understanding how societal trendsof their money are increasingly turning will affect the way they trade and Data analysis provided
  4. 4. Contents 4 Foreword 03 Executive Summary 05 Impact of the Economic Downturn on the Retail Jobs Market 06 Recruitment Strategies and Pay 07 Sector Analysis — Fashion 08 Sector Analysis — Electrical / Telecoms 10 Sector Analysis — Supermarkets / Food 11 Regional Trends 12 Regional Spotlight — London 13 Regional Spotlight — Wales, Scotland / Northern Ireland 14 Emerging Trends
  5. 5. Executive Summary 5 Job Advertisements Vs Applications per Job 120,000 30 100,000 25 80,000 20 No. Applications per job No. Unique Job Adverts 60,000 15 40,000 10 20,000 5 0 0 20 20 20 20 20 07 08 09 10 11 Total No. Unique Job Adverts Average No. Application per Job“Applications per job have increasedby 50% since 2008” The retail sector represents 10% fashion which witnessed a 13% to employ the most talented staff of the total UK job market, employing drop in the number of roles to help them deal with the roughly 2.6 million people. advertised. It is likely that this has fast-changing world of retail. been caused by the knock on effect Since the economic downturn the of a significant spike in national With the ever increasing use of retail number of advertised jobs has fallen unemployment up more than 150,000 technology and the roll-out of considerably. In 2008 RetailChoice. to a total of 2.67 million. With more multi-platform marketing campaigns com advertised around 110,000 than 8% of the working population there has been a clear growth in the roles, which fell sharply to just over unemployed there is significantly advertised salaries of specialist 55,000 in 2009. less disposable income available roles. In some sectors they were to spend on fashion items which attracting as much as a 20% The drop in adverts was mirrored too many are not regarded as premium on the more generalist almost exactly by a steep rise essential compared with things such roles such as store managers. in the number of applications per as other retail goods like food. job. In 2008 there were around 12 In a sign of increased confidence applications per post, but in 2009 The volume of people applying for of a return to economic growth, this had almost doubled to each role demonstrates clearly this 2011 saw the first rise in retail sector approximately 23 applications it is an employers’ market, allowing average salaries since 2008. per role. By 2011 this had fallen back recruiters to be more selective and An average increase of 2.3% slightly too just short of 19 choosing only the very highest should offer some encouragement applications per role. calibre of candidates. For those to recruiters and candidates alike. searching for their next role this One retail sector which was means increased competition but particularly badly hit in 2011 was for recruiters this is an
  6. 6. Impact Of The Economic Downturn On The Retail Jobs Market 6 Job Adverts by Sector – 2011 Vs 2008 Electrical/Telecoms -57% Fashion -17% Footwear/Accessories 10%General/Department Store 68% Health/Beauty -7% Home/DIY -34% Leisure/Hospitality 21% Other Retailers -58% Supermarket/Food -38% -1 -1 -9 -8 -7 -6 -5 -4 -3 -2 -1 0 10 20(Figures in bars show % 1, 0, ,0 ,0 ,0 ,0 ,0 ,0 ,0 ,0 ,0 00 00 00 00 00 00 00 00 00 00 00 00 00change from 2008 to 2011) 0 0“Fallout from the 2008 economic downturncontinues, but there are some signs ofrecovery. Department stores, leisure andfootwear performed better than other sectors”With continued pressure on margins other areas of retail and consequently customer interactions. They are alsoand a necessity to keep costs down have continued to need to hire. more flexible in terms of the hoursretailers are running their organisations For retail sectors that have been they are looking to work for exampleleaner than ever before. Employees significantly affected by the advent of covering part-time or peak time hoursare expected to be more versatile internet shopping there has been – a distinct advantage in uncertainand cover for roles which may no a noticeable increase in the number economic times.longer exist following organisational of roles requiring skills suited torestructuring. a multi-platform environment, in particular for things such as data shows that marketing and logistics. “Our employee turnover remains fairlyalmost all retail sectors saw a fall in static. We’ve always received a highjob adverts between 2008 and 2011, With an ever increasing proportion number of applications, especiallyexcept department stores, leisure and of the UK population falling in to the for head office roles and yes, wefootwear. For department stores this over-50’s age group it is likely that have seen an increase in the volumeis likely to be because they tend to we will a similar change in the make- of these”deal with the luxury end of the market, up of the retail workforce. Asda andan area that has been significantly B&Q are already championing the use Rose Scottless affected by consumer sentiment. of older workers as they are seen as — HR Manager, PaperchaseLeisure and footwear are also seeing being able to offer more soft skills,far less online competition than some extremely important in
  7. 7. Recruitment Strategies and Pay 7 Median Annual Salary 2001 – 2011 £28,000 £27,000 £26,000 £25,000 £24,000 £23,000 2011 2007 2008 2009 2010 £22,000 £21,000 Median Annual Salary“The importance of specialist skills continues togrow - advertised salaries were on average 20%better than for more generalist roles”The retail industry has always suffered attracting 20% better salaries Anecdotally the trend towardswith high staff turnover, estimated than the more generalist store promoting from within has continued,at around 40%; this churn brings with manager positions. further highlighting the importanceit increased costs through recruitment of hiring the very best candidates inand training. With the economy still During the economic downturn many the first place. Recruitment strategiesweak, retailers are continuing to focus organisations underwent restructuring should never be just about fixing theon driving down recruitment and programmes which led to reductions current resource gap; instead it shouldstaffing costs. in headcount. In many instances the be about building for the future. remaining employees were expectedThis has led to a greater focus on to cover the positions which hadrecruiting the right people with been rationalised.the specialist skills to support the “We have continued to recruit fororganisation’s aspirations. Employers Employees have been asked to management roles, but were fairlyare looking for a different type work much harder and cover a greater static in 2011 and chose to promoteof candidate to those they were variety of tasks, this has led to many internally. It was also more noticeableinterviewing in 2008, a proven track retailers re-examining their policies that people were making decisionsrecord with transferable specialist towards holiday entitlement, based upon money.”skills are the order of the day. flexi-time and benefits to retain and recruit the best staff. This may be one Sam data shows that of the reasons why — HR Manager, Paperchasespecialist roles in the areas of digital, data showed the first rise in averagedesign and advertising are on average salaries since
  8. 8. Sector Analysis — Fashion 8 Jobless Total Unemployment and Claiment Count in the UK 1992-2012 3.5 3.0 2.5 No. of Jobless (Millions) 2.0 1.5 1.0 0.5 0 20 08 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 09 10 11 12 Claimant count UnemploymentSource: Office of National Statistics (ONS) Data“After a steep fall in jobs in 2009, a rise in 2010and then a decrease again in 2011, fashion hasbeen one of the most tumultuous sectors in retail”Fashion makes up a significant The availability of fashion roles seems Just as the national picture sawproportion of the jobs available in the to have followed a similar trajectory a steep rise in unemployment in 2009retail sector as a whole, a fact that to the national unemployment picture, then a moderate reduction in 2010,is reflected by’s highlighting how intrinsically this fashion retail saw an equally steepdata where almost half of the jobs area is linked with levels of consumer decline in roles available in 2009 thenadvertised were for fashion roles. disposable income. a slight rise in availability in
  9. 9. Sector Analysis — Fashion 9 London Premium Vs Median Annual Salaries £29,000 30 £28,000 25%Estimated Median Salary (2011 weights) London Premium to other Regions Median £27,000 £27,739 20% Premium Median 24% Median £26,871 Premium £26,000 £26,561 15% Premium 22% Median 26% £25,910 Premium £25,000 10% 25% Median £24,750 £24,000 Premium 5% 21% £23,000 0% 20 20 20 20 20 07 08 09 10 11 Median Annual Salary London PremiumAs the UK’s unemployment levels One highlight of the fashion sector wasrose again in 2011, so the number of a significant rise in advertised roles decreased. Office of National Statistics (ONS) data “It’s an employers’ market at the suggests that for the UK as a whole moment because of the difficultIn 2011 more than 37,000 fashion roles wages rose by 2.3% however fashion economy. But it’s important to lookwere posted to roles on increased after your current staff – it’s morereceiving on average 19 applications by 3.4%. expensive to lose someone.”per role a growth of 2% year on year. Maha MekkaouiWith the popularity of online fashion — HR Manager, Sixtyoutlets such as ASOS, Boohoo andRare it isn’t surprising to see a growthin technology (+20%), IT (+15%)and design (+15%) roles withfashion retailers.This was in contrast to the moretraditional store and area managerroles which decreased by around
  10. 10. Sector Analysis — Electrical & Telecoms 10 Change in No. of Applications per Job 2010 – 2011 Fashion 19.7 Electrical/Telecoms 17.0 Supermarket/Food 25.4 Home/DIY 12.4 Footwear/Accessories 19.1General/Department Store 20.1 Health/Beauty 21.6 Other Retailers 13.1(Figures in bars show -8 -6 -4 -2 0 2 4 6 8 10 12No. applications per jobin 2011)Consumers moving online has causeda significant drop in roles”The research revealed that electrical On the flip side, electrical and Recent research from Capgemini/and telecoms was one of the few areas telecoms was one of the few sectors IMRG has shown that since 2000 salesto have seen a decline in the number to have seen a rise in the number of of electrical goods online have grownof people applying for each job. From roles being advertised with a rise of by a massive 996%, with a particulara high of 26 applications per advert 13% year on year to just shy of 6,000. surge in the last three to four 2009, submissions have fallen to However this is still almost 8,000 lessroughly 16 applications per job. In roles than were advertised in 20082011 the total number of applications prior to the economic downturn.dropped by 20% year on year. “The growth of ‘click and collect’, Although the number of roles multichannel retailing andOne possible explanation for the available has increased in the past m-commerce means more retailersdecline in enthusiasm for these roles year, there has been a significant need to make sure staff are familiarcould be the lack of growth in salaries. fall in the number of sales assistant with their ordering systems to ensureDespite some growth in 2011 (+0.9%) roles available. The number of these the customer experience is seamless.they are still a full percentage point types of adverts dropped by almost Customers increasingly expect staff toless than the peak in advertised 20%, a pattern which is likely to be be experts in their category, ready tosalaries in 2009 when the median linked to the wider trend of increasing help them make an informed choice.”annual salary stood at £23,321. online shopping. Anne Seaman — Chief Executive, of Skillsmart
  11. 11. Sector Analysis — Supermarkets & Food 11 Change in No. of Applications per Job 2010 – 2011 Sales Assistants Store Manager BuyingOther Head Office Vacencies Pharmacy Department Management Supervisor Logistics Administration & Support Merchandising -7 -5 -2 0% 25 50 75 10 12 15 17 20 5% 0% 5% % % % 0% 5% 0% 5% 0%“The number of applications for each roledoubled between 2010 and 2011”The number of supermarket and food and Tesco may have led to a surge Salary increases were most marked inretailer roles available has not followed in unemployed people looking for the supermarket and food sector witha steady pattern. After a huge fall of roles in these areas, leading to the the advertised median annual salarymore than 60% between 2008 and spike in competition for roles. In line standing at £34,327, 7.4% higher in2009, things began to look up with with the supermarkets looking to 2011 than in 2008 when candidatessome growth in 2010, however this recruit more, data could expect £27,457.fell back again in 2011. revealed a 200% rise in sales assistant jobs in 2011. The ‘London premium’ continuedFrom a peak of about 9,000 jobs to grow in 2011 with London basedadvertised in 2008, 2011 saw just over In fact sales assistant’s roles candidates being able to commandhalf the amount at 5,500. constituted two thirds of all the 23%, up 10% on 2010, extra payAlthough the number of roles supermarket roles advertised in 2011, compared to those in other regions.advertised has been on somewhat whereas in 2010, 45% of adverts hadof a roller coaster one thing that has been for store managers.consistently grown is the number ofapplications per role. Specialist roles also saw an increase in demand, in particular pharmacyBetween 2010 and 2011 this doubled and logistics, which both saw anto an average of 25.4 applications increase in adverts of more thanper advert. In 2008 this number had 100% in 2011. Senior head office rolesbeen approximately six per position also rose as supermarkets lookedavailable. National publicity around to strengthen their leadership teamsthe recruitment drives of some of the to deal with an increasingly toughmajor supermarkets such as Asda trading
  12. 12. Regional Trends 12 Breakdown of Regions by Selected Sectors in 2011 100% 90% 80% London Premium to other Regions 70% 60%% Job Adverts 50% 40% 30% 20% 10% 0% London South East Other Regions Fashion Supermarket/Food Electrical/Telecoms Others“The South East was least affected between2010 and 2011 with only a 1% drop in job adverts,compared to Northern Ireland which droppedby 24%”The regional picture was similar to the The retail market has likely beennational one with reductions in the less affected in these areas as thenumber of roles available. Perhaps demographic is generally wealthierunsurprisingly London (-4%) and the and has continued to spend during theSouth-East (-1%) have weathered the economic downturn in comparison toeconomic downturn slightly better other regions.with only slight reductions in rolesadvertised between 2008 and 2011. Outside of London and the South-East, the North-West, South-West and Midlands were the next best performers although even they saw reductions in the number of adverts of about 10% between 2010 and
  13. 13. Regional Spotlight — London 13 London Premium Vs Median Annual Salaries £28,000 25% £27,000 20%Estimated Median Salary (2011 weights) London Premium to other Regions £26,000 Median £26,398 Median Premium Median £25,803 23% 15% £25,000 £25,715 Premium Median Premium £25,607 20% 20% Premium £24,000 16% 10% Median £23,964 £23,000 Premium 16% 5% £22,000 £21,000 0% 20 20 20 20 20 07 08 09 10 11 Median Annual Salary London Premium “Fashion roles accounted for 70% of jobs advertised in London” ONS figures show that unemployment the 2011 figures which show that of all in London is the second highest of any the roles advertised in the region, 70% region in the UK, at a fraction short of were for fashion retailers, nationwide “The downturn has forced retailers to 10%. However its demographics mean the figure was just 43%. be even more proactive to ensure they that there is a significantly higher level Factors such as the opening of the get their share of consumer spending of disposable income available new Westfield shopping centre in at a time when we’re all being more to support industries such as retail. Stratford and the upcoming Olympics careful. Especially for smaller retailers, are likely to have been contributing less able to compete on product and It is also a hotspot for tourism and factors to this. price with their larger competitors, with many thousands of visitors each people are where they can make a real year bringing added spending power As the financial centre of the UK, difference and training is key.” it is easy to see why the retail many of the biggest retailers are industry’s fortunes have fared a little headquartered in London. Head office Anne Seaman better in London. roles such as buying, design and — Chief Executive of Skillsmart Retail technology accounted for 29% of London’s reputation as a global centre advertised roles in London as oppose for fashion and design is borne out by to just 9% for other UK regions.
  14. 14. Regional Spotlight — Wales, Scotland & Northern Ireland 14 No. Job adverts in the UK in 2011 is down 27% since 2008 but in Scotland the decline is 43% 120% 100%Index of No. Job Adverts (100% = 2008) Median Median 6,318 6,308 % Year on Year Change % Year on Year Change 80% 0% n/a 60% Median 3,755 Median % Year on Year Change 40% 3,641 Median 23% % Year on Year Change 3,052 -4% % Year on Year Change -52% 20% 0% 20 20 20 20 20 07 08 09 10 11 Scotland United Kingdom “Since 2008, advertised roles in Scotland have dropped by 43%” Recent ONS figures showed that Northern Ireland and Wales were both Scotland has seen an increase in retail hit with significant reductions in roles sales; unfortunately this good news advertised during 2011. Wales saw falls wasn’t reflected in the recruitment of 19% but the worst hit was Northern numbers where Ireland which had reductions of 24%. figures showed a fall of 43% in the number of adverts between 2008 and 2011. In 2007 adverts for jobs in Scotland represented 5.9% of the UK total, in 2011 this had fallen to 4.7%
  15. 15. Emerging Trends 15“Adapting toa multi-platform retailworld will be thedefining challenge”Since 2008 the UK retail sector potential retail platform, providing their best employees whilst attractinghas dealt with a significant consistency of service and brand new ones. This is likely to drive upnumber of challenges including values to the end consumer, will be salaries and demand for the bestthe Eurozone crisis; reductions in the ones who win out. candidates, although for the moment itconsumer spending power; increasing remains an employers’ market.running costs; greater competition; Employing the right people tothe growth in multi-platform retailing provide those specialist skills willand now a double dip recession. be an important foundation stone to achieving this.Consumers have “Retailers still generally hire on attitudeIt is unlikely that the trading always placed great importance rather than specific qualifications, butenvironment is going to get any on the customer service they receive in an increasingly competitive marketeasier in the short term and retailers from retailers. they are all looking to their staff towill need to adapt to this to remain provide that point of difference”competitive. In particular the growth An increasing number of majorin multi-platform retailing is likely to retailers are returning to this ethos in Anne Seamandefine the next five years. an effort to boost sales, most notably — Chief Executive of Skillsmart Retail Asda, Tesco and John Lewis haveRecruiting the staff that understand all been vocal about their strategy ofthis new model and can deliver value putting the customer experience at theto the business and consumer will be centre of their operating model.Againkey. Not only will this change require this is an area which will require staffpeople with different skill sets it with the right skills.will also mean that retailers have torestructure their business operating As glimmers of green shoots beginmodel. The retailers who are able to to appear in the economy it will beget the balance right between each important for retailers to keep hold
  16. 16. Credits 16Further informationSince its launch in 2004, has pioneered If you are interested in finding out more about howonline recruitment for the retail industry. Working with a can help you and your business,range of retail businesses across all sectors across the UK, please either email:it has developed a strong reputation as a leader in its field,,helping both small and large businesses to improve their or call 020 7572 4284recruitment and retention processes. to speak to a recruitment expert. Register to receive future Retail Employment Insight reports today at cover Image: Photo