Retail cash cow

Employees in the retail sector can expect a cash bonanza and fresh opportunities going forward – find out why.

Retail recruitment during the Christmas period is expected to be steady according to the 2013/14 Michael Page Salary & Employment Forecast – Retail.

Retail employment levels are also expected to be positive over the next six months.

According to the study there are several factors are contributing to the positive outlook, such as: improving consumer confidence since the global financial crisis and record low interest rates.

An anticipated above forecast increase in consumer spending over the coming festive season has also contributed.

Following positive business results recorded during Christmas 2012, hiring activity in the retail sector was fairly steady and this enhanced opportunities in the retail job market throughout 2013.

This is expected to continue over the next six months – particularly off the back of a predicted strong Christmas trading period – with opportunities continuing to rise in NSW and VIC as well as QLD, particularly across food and non-food operations.

A strong flow of executive-level opportunities is also expected due to changes at the leadership level of operations, buying and merchandising roles at a number of large retailers.

Commenting on the outlook, Michael Page regional director Richard Wynn said the influx of foreign retailers could also open up employment opportunities for locals.

“This trend is expected to continue over the coming year, particularly as new international brands like Williams-Sonoma, Uniqlo and H&M enter the Australian market.”

Based on market observations, physical stores that strengthen the customer experience through store theatre and visual merchandising are competing with the online retail sector for consumer attention.

As such, retail professionals skilled at visual merchandising have also been in demand in the lead up to Christmas to enhance physical store presence.

Bonuses and salary increases remain a key component in attraction and retention strategies for retailers, but businesses are shifting their attention to building strong company culture.

Rather, companies are recognising and rewarding staff with non-financial rewards, such as career development opportunities and flexible work arrangements.

Other key survey findings and industry insights included:

• 92 per cent of employers will consider awarding bonuses as part of employees’ salary package.

• 80 per cent of employers chose flexible working arrangements as the most popular employee support option, prompting businesses to consider non-financial rewards to retain talent.

• 60 per cent of surveyed employers say all their employees will receive a salary increase but the amount will vary according to performance.

• 83 per cent of employers plan to increase employee salaries up to five per cent compared with between one per cent and two per cent in previous years.

• An increase in executive-level opportunities is expected due to the debut of new international brands in the Australian market.

Source: 2013/14 Michael Page Salary & Employment Forecast – Retail.

The Michael Page Salary & Employment Forecast was completed by over 1,800 employees across a range of industries.