Are Changes in Organisational Structure Affecting Career Progression within the Retail Sector?

A recent survey of 600 middle and senior managers within the retail sector revealed that the single largest area of dissatisfaction is career progression.

The survey conducted by executive head-hunter Lann Consulting, also revealed that a shift in organisational structures is at the top of the list when it comes to top talent considering a job or career change.

These findings raise the question as to what extent changes in organisational structure affect the opportunity for managers to climb the career ladder. Has the noticeable de-layering of senior positions in recent years widened the rungs when it comes to making the next step upwards? And if so, what can individuals do to ensure they are equipped with the correct skills and experience they need to gain promotion?

Steve Smith, Head of Group HR at leading direct home shopping group N Brown, believes that the move towards flatter organisational structures within the retail sector, coupled with an unstable market place, has led to an ëartificial ceilingí effect that is contributing to concerns over career progression amongst senior managers.

He comments: ìCompanies are becoming smarter when it comes to talent management, implementing retention strategies that will keep employees loyal to the company in an uncertain retail environment.

ìBenefits such as annual bonuses and share schemes tie talent into a company, ensuring that they feel proud of business successes and work hard to achieve a well deserved reward at the end of each year.

ìIt is perks such as these that keep people in senior positions from changing jobs and being tempted by the competition. At the end of the day, if moving companies means losing a bonus payment that you have been working towards all year ñ more often than not an employee wonít want to walk away without remuneration.

ìWith retention strategies taking effect, added to top talent not wanting to face the uncertainty of redundancy that a new company may bring, managers at lower levels are finding that there is limited chance to move into vacant positions further up the hierarchy and instead are having to explore sideways opportunities.

Liz Jewitt Cross, former HRD at Mosaic Fashions and proprietor of Cross Human Resources, agrees that organisational structures across the retail sector are changing at an amazing pace, creating the need for companies to understand and manage internal talent and career progression.

She adds: ìYoung retail talent is looking for fast track career development to fulfil their aspirations. What both employees and businesses need to understand is that changes in organisational structure means progression is as much about career breadth as it is about being upwardly mobile.

ìEmployees can increase remuneration, and more importantly widen their knowledge and skill set in order to facilitate future upward movement within a company if they are prepared to widen their breadth of experience. Talent must also develop a global perspective to effectively take steps up the retail ladder. Flexibility is absolutely key for those with ambition who are looking for rapid progression and donít want to get left behind.

Ben Bengougam, Group HR Director at electrical retailer, DSGi also observes that a flatter organisational structure now exists within the retail industry, which requires top talent to work towards fulfilling their own ambitions, as much as HR functions having to map out clear promotional pathways on their behalf.

He concludes: ìNow more than ever employees must take a broad-minded approach when considering career progression. It is important that talent within the retail industry accepts that to progress upwardly they must first move laterally to broaden their horizons and ensure that they make necessary developments to ultimately become more marketable within the sector.

ìManaging their own career, rather than relying on their employer to show them a clear route to promotion is essential. A pragmatic approach pays dividends in enabling employees to realise and then go on to successfully fulfil their own potential.

Taking these opinions into account and in light of the survey results, Steven Murdoch, managing director of Lann Consulting, believes that individuals concerned about their career progression within the retail industry should pursue a number of avenues to gain the experience and knowledge needed to facilitate the next step.

He advises: ìSpeak with people at the level to which you are aspiring and understand what skills, experience and traits have facilitated them getting there. There is a good chance you will need a breadth of experience outside of your existing departmental function, so build that into your PDP and get involved in cross departmental projects.

Finally, keep your career planning aligned with business strategy. If you can foresee opportunities or changes which will affect your role, use your own initiative to take on more responsibility or re-skill rather than wait for your company to act. Taking full control of your own progression will ensure that you reach your full potential.î

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