Page 26 - DMGT551_RETAIL_BUSINESS_ENVIRONMENT

Unit 1: Introduction to Retail Environment

For suitable candidates, the Harrods Sales Degree provides the high level sales skills the Notes
company needs. This is the first and only degree of its kind in Sales. It is recognised
globally and can be completed in two years.
High Potential programmes are concerned with succession planning. They are aimed at
ensuring there is a strong pipeline of potential senior managers. The Harrods Management
Programme develops ambitious and career-focused employees into a management role.
Jessica joined the company after graduating with a degree in Art History. After just 3 years
she is now a Harrods Retail Manager. She runs the Designer Collection sales floor,
managing 26 employees and controlling a substantial budget.

‘My quick progression to Retail Manager was helped by the fact that Harrods allows
people to take control of their own development to a large extent. Harrods supports you
if you are keen to get on. The Harrods Management Programme gave me eight months of
training, both in-house and external. This, together with the support of my mentor, has
equipped me with the specific skills I need to carry out my job effectively’ Jessica said.
Harrods offers other programmes:
The Business Academy which supports managers as they progress into more senior
positions.
The Oxford Summer School which is a challenging academic learning opportunity
held at Keble College, Oxford. This is designed to highlight some of the problems,
decisions and challenges of running a retail business. 10 prized places are awarded
to high potential managers.

The Buying Academy which develops our Assistant Buyers into Buyers of the future.
Retaining talent
Employee retention is important for businesses. A low employee turnover can keep
recruitment costs down. It also ensures a skilled and experienced workforce. Employee
development is beneficial for both the employee and the business. However, sometimes
employees think that their new-found skills will enable them to gain a better job elsewhere.
Harrods, therefore, has put in place strategies to keep its talented Retail Managers. It has
found that employees who develop within the company tend to stay. Those brought in
from outside are more likely to leave. Another vital part of retention for Harrods involves
identifying the ‘DNA’ (key factors) of great sales people. It then matches applicants to
these factors.
To reduce employee turnover Harrods has developed a better management structure,
improved benefits and created initiatives which make Harrods a ‘great place to work’.
Harrods has put in place a system of rewards and incentives:

An excellent package of employee benefits including good pay, employee discounts
and a good working environment.

Commission and sales bonuses for individuals and teams.
Improved work schedules which help to give a better work-life balance.
Harrods also has systems to improve employee communications so that it can listen to
feedback and address any issues. There is an Internal Communications department, regular
performance assessment meetings and SMART targets for employees to reach. These
initiatives have seen employee turnover fall from 51.4% in 2006 to 25% in November 2011.

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