Lack of Hong Kong retail talent is negatively affecting customer services

Manpower issues are among the major challenges faced by Hong Kong retailers, which may bring negative impacts on sales, and hinder the digital transformation of the industry, according to the latest report by KPMG and the Hong Kong Retail Management Association (HKRMA).KPMG and the HKRMA have jointly released a report “ Minding the Retail Gap: Hong Kong's talent challenges and future strategies” which conducted a survey of 281 retailers with operations based in the city earlier this year. The report found that high rent remained (79%) the biggest hurdle of Hong Kong retailers, followed by a shortage of workers and a high staff turnover rate. The most difficult roles to hire for are front-line customer service staff and retail salespersons, at 72% each. They were followed by technicians supporting retail technologies/digitalisation/eCommerce (64%), and supervisors or managerial grade staff (63%). Retailers also recognise they need a technologically savvy workforce to lure customers and prospective talent."The new era of retail enabled by the latest technologies is essential not only to customer experience but also to Millennials setting their sights on careers in the industry," said Annie Yau Tse, chairman of the HKRMA.A majority of surveyed industry leaders expect the undersupply of talent will lead to lower customer service quality, slower or negative sales growth, and diminished staff morale and productivity in the next two years. Each of the three effects is anticipated by more than half of all respondents.The report pointed out that if the retail manpower shortage persists or worsens, customer service could suffer, affecting Hong Kong's image as a shopping destination compared to other cities. The lack of talent could also frustrate the industry's ability to transform technologically, further hindering its competitiveness regionally and globally."The retail industry is a pillar of Hong Kong's economy, and its workforce is vital to its continued success," explained Alice Yip, partner and head of consumer and industrial markets for Hong Kong at KPMG China. "Retaining those who work in retail and making the industry more attractive to prospective employees are high priorities."Those surveyed singled out reinforcing staff training as the top strategy they would consider in the next two years, at 64%. That was followed by providing higher staff incentives (57%), adopting technology-enabled service/automation (53%), highlighting career possibilities associated with their brand (52%), and hiring more mature or older staff (52%)."The next generation of talent in Hong Kong needs to be nurtured, and we need to up-skill at all levels. If traditional businesses stand still, they are finished," said Anson Bailey, partner, head of consumer and retail for Asia-Pacific and head of technology for Hong Kong at KPMG China.