Sri Lankan Supermarkets: Recruitment and Selection
“…With supermarket and hypermarket expansions also on the rise, driven by an increasingly sophisticated and brand-conscious consumer group, all segments of the retail value chain holds vast potential for future investment and expansion." (Oxford Business Group, 2016)
The Supermarket Sector in Sri Lanka
According to Oxford Business Group (2016), ‘Sri Lanka’s modern supermarket-hypermarket segment is among the fastest-growing sectors, with supermarket penetration increasing from 5% in 2005 to around 8% in 2012. The dominant players in the sector include Cargills Food City, Keells Super, Laugfs Sunup, Arpico, and Lanka Sathosa. Cargills chains command a ~50% market share in terms of turnover, with the company holding over 220 outlets spread across the country.’
According to a research
article published by Ratnayake (2015), he states that, compared to
supermarkets and malls, retail shops, more importantly, street-based retail
sector has been growing at an increasing rate during the last two decades and
also contributes to generating employment, particularly for poor people.
On the other hand, with
the rapid expansion of the supermarket and
hypermarkets, we can predict recruitment and selection for supermarket
operators are becoming increasingly tough and competitive. However, Booz (2018),
in his research article, published on LinkedIn gives a different perspective.
He states that the retail industry traditionally records a high turnover, and with
the rise of online shopping, companies need fewer people on the floor. This
will result in many former sales personal to find completely new careers.
According to his data collected from LinkedIn members, he argues only 35% of
people leaving jobs in retail stay within the sector.
While this could be
true in the global context, In contrast, Sri Lankan supermarket recruitment data
gives a different picture. 2019/2020
Annual Report of John Keells Holdings, the parent company of Jaykay Marketing
Services (Private) Limited, that manages Keells Supermarket chain states that,
it employs approximately 4,900 individuals across 109 Outlets island-wide as of
31 March 2020. According to the 2019/2020 Annual Report of Cargills Ceylon, as
at 31 March 2020, 411 Cargills Food City outlets (including Cargills Food City
Express and Cargills Food Hall) are operational across all 25 districts of Sri
Lanka, provides employment for 10,522 employees on a permanent basis. On the
other hand, the Annual Report of Richard Pieris and Company PLC, parent company
of Arpico chain of Supermarket states that, its subsidiaries employed 27,390 at
the yearend 2018/2019.
Reference list:
All Answers Ltd. November 2018. Supermarket Culture in Sri
Lanka. (online). Available from:
https://ukdiss.com/litreview/the-sri-lankan-retail-market-marketing.php?vref=1
(Accessed 15 October 2020).
Cargills. (2020). Cargills (Ceylon) PLC – Annual Report
2019-20. Available at:
https://www.cargillsceylon.com/pdf/annual-reports/Cargills%20(Ceylon)%20PLC%20-%20Annual%20Report%202019-20.pdf (Accessed: 15 October 2020).
Keels Super. (2020). John Keells Holdings PLC AR 2019 20 CSE.
Available at: https://www.keells.com/annual-reports
(Accessed: 15 October 2020).
Linkedin, (2017). ‘’Industries
have highest talent turnover rates’’, https://business.linkedin.com/talent-solutions/blog/trends-and-research/2018/the-3-industries-with-the-highest-turnover-rates,
(Accessed: 14 October 2020).
Oxford
Business Group. (2016). Retail becomes one of Sri Lanka's fastest-growing
sectors. United Kingdom: Oxford Business Group. Available
at: https://oxfordbusinessgroup.com/analysis/setting-shop-retail-has-become-one-fastest-grow%C5%9Fing-sectors-and-being-driven-sophisticated-consumer
(Accessed: 15 October 2020).
Ratnayake, R. (2015). ‘Traditional
Small Retail Shops vs. Emerging Supermarkets and Shopping Malls in a Sri Lankan
City’. ‘Bhúmi, The Planning Research Journal’ – Special Issue September 2015.
pp.44–57. DOI: http://doi.org/10.4038/bhumi.v4i1.4.
Richard Pieris and Company PLC (2019). RPC Annual Report 2018-19.
Available at: https://www.arpico.com/contents/pdf/annual_reports/rpc/RPC_Annual_Report_2018-19.pdf
(Accessed: 15 October 2020).
Sri Lanka Department of Census and Statistics. (2019). Computer Literacy Statistics – 2019 (Annual). Available at: http://www.statistics.gov.lk/Resource/en/ComputerLiteracy/Bulletins/AnnualBuletinComputerLiteracy-2019 (Accessed: 15 October 2020).
Retail recruiting is different from most recruiting because the potential “prospects” have a varied background and can number in the hundreds of thousands. But on the other hand, because prospects are generally very visible, they are easier to assess and communicate with (John, 2000).
ReplyDeleteWorld Economic Forum Report (2016) suggests that, sales and related jobs may see an increased demand for creative skills and ideas for promoting a memorable shopping experience, as brick-and-mortar retail has to reposition itself in relation to e-commerce and online competition as a preparedness for the fourth industrial revolution.
DeleteA fascinating paper. I would like to draw your attention to the relevance of e-recruitment, however. Competition has grown significantly with globalization. The rise of e-recruitment can therefore be seen in any part of the world (Marr, 2017). I would say that in this decade, e-recruitment would supersede and develop as the norm for recruitment from all types and methods
ReplyDeleteWhile this being true, according to Sołek-Borowska and Wilczewska (2018), benefits of e-recruiting can differ between organizations, because every organization has its own strategy, and recruitment objectives should support that strategy.
DeleteThe transfer/deploy its existing city staff cadres to suburban branches across Sri Lanka in keels Supermarkets, the policy that is adopted in an organization must be both fair and systematic to be acceptable to employees. When the transfers involve a large number of employees, it is typically quite difficult to find suitable alternative positions for everyone. Some preliminary results are reported in ( Acharyya S, Bagchi 1998).
ReplyDeleteDeployment practices are aimed at supporting employee’s engagement, employee motivation and increased productivity and leadership development across all level of
Deleteemployees across all levels of employees within the organization. Deployment is defined as the movement of staff from ones’ current assignment to another to meet operational needs. We have different types of Deployment, mainly: Inter-location Deployment, Inter-departmental Deployment and Re-designation Deployment (Mponda and Biwot, 2015).
Recruitment is the process of attracting a large group of qualified people for employment and this includes planning for human resource to job design, job description, job analysis, creating perception among others (Bernerth, 2009). Selection on the other hand is the procedure which organizations make decisions about who will or will not be allowed to join the organization (Bernerth, 2009). Often the performance of businesses relates straightly to the people working within it, meaning the right people need to be hired to secure the organizational success (Henry & Temtime, 2009).
ReplyDeleteWhen an individual or groups of employees are able to achieve their goals and objectives in an organization, it can be termed as organizational performance (James, 2012). When all the elements of an organization operate together in achieving positive result in an organization, a high level of organizational performance is achieved (James, 2012). In order to assess the success of an organization, the performance results are compared to the predefined goals and objectives. Long term strategic objectives, organizational hierarchy, performance measures and techniques, organizational culture and values and also rewarding pattern are the various elements which supports an organizational performance (Wijesundara, 2018).
DeleteHi Mihiran,Very interesting to read your inputs and we can get more idea about our supermarket chain. As per my knowledge supermarket chain main concern about gender wise labour availability per the labour market survey (2019),estimated economically active population is around 8.6 million, and of that about 64.6 percent are male. That is about 5.6 million. Majority among the economically inactive population are females (73.7%). That is about 5.8 million.Due to high female unemployment , this industry may face some issues in current and also in future.
ReplyDeleteAccording to the Annual Report of John Keells Group (2019/20), the parent company of Keells Supermarkets; In 2017, the Group was one of 16 corporates to join the International Finance Corporation's (IFC) 'SheWorks' Sri Lanka partnership which is one of the flagship initiatives of the Women in Work Programme, in collaboration with the Australian Government (DFAT), with the objective of working with the private sector to close gender gaps by enhancing gender smart solutions, while improving business performance. The achievements of 16 women and men who have championed gender equality in their workplaces over the last two years were celebrated as part of the launch of a new campaign 'Together We Can'.
DeleteWhilst the Group has revised its maternity and paternity leave policies as well as introduced flexible work arrangements, it has seen an increase of 5 per cent of women in the workforce since joining the programme, where commitments were made to; increase women's business leadership, ensure recruitment and retention of talent in the workplace, promote effective anti-sexual harassment mechanisms, support women in the value chain as employees and entrepreneurs and foster the Group's leadership and commitment to women's employment as a smart business strategy.
The Group is in the process of considering the setting of gender targets for its workforce, having women-centric training, male mentors and supporting childcare facilities to further support female participation, retention and leadership opportunities.
Hi Mihiran, I do agree with the content. Generally speaking, HR's main duty is to find competent individuals or workers to work for an organization that selects and recruits the backbone for all HR activities(Gareth, 2005).HR as a goal is to maintain an organization's skilled workforce to keep it running smoothly. The HR department is responsible for finding and training people, and these people need to be motivated.
ReplyDeleteMaslow’s Theory which is popularly known as Maslow’s Need Hierarchy is very much interlinked to Herzberg’s Theory. There are five levels of needs as per Maslow; Basic needs, Security, Belonging and love, Esteem and Self-Actualization. Needs of a person should be met as per the lower to higher level to increase the productivity of the Individual (Furnham et al, 1998). Maslow’s Need Hierarchy is used by several organizations for designing their motivational strategies and one of them is HSBC bank (Baker & Hart, 2008).
DeleteFrom clothing and accessories to grocery and convenience stores, retail makes up quite a large portion of the job world. First, retail has a high employee turnover. Retail workers are quick to leave for new positions, better pay, or even to get away from management they disagree with. The retail industry also has a strong seasonal need. People shop more at different periods throughout the year, meaning stores need to hire more employees to help meet the demand. When trying to hire full-time, part-time, and seasonal retail employees, you need to have a solid strategy in place to ensure you are getting the right people in your open positions. Some of the tips for recruiting in 2019 were
ReplyDelete• Define your hiring goals
• Know your candidates.
• Create an employer Brand
• Utilize data and recruitment tools
• Develop a retention Plan (Harver. 2018)
Adding to your valuable comments, the effective recruitment is important for an organization as it provides numerous benefits in the long run. To do effective recruitment Desseler (2014) emphasized that employers require a proper brand to differentiate themselves from other competitors and to gain competitive advantages in the labor market.
DeleteJob satisfaction is a very important part of an employee’s lifecycle and motivation to remain
ReplyDeleteloyal to and employed within supercenters in Sri Lanka's supermarket sector. Therefore, HR must also remember that how HRM practice impact on happy employee job satisfaction and will help it reap financial, cultural and brand equity benefits in the industry (Dartey 2016).
According to Weerawardane and Weerasinghe (2018), the employer brand equity is the outcome of the employer branding activities. The employer brand equity propels the potential applicants to apply and the existing employees to retain. If the employer brand activities are successful it will result in the retention and the attraction of the potential and current employees.
DeleteRecruitment defined as the process of attracting future employees and encouraging them to apply for a particular position in an organization. Armstrong & Taylor has cited that recruitment is about understanding every activity in relation to the position and directed the potential employees. Supermarket chain should ready for recruitment always due to high employee turnover
ReplyDeleteAs explained in the social identity theory, if a company does have a positive aspects of employee image (brand), the possibility of candidates being attracted to the company is higher. Further, Xie, Bagozzi & Meland (2015) cited that the studies in the personnel psychology suggests that company reputation plays important role in the recruitment process. Hence, it can be mentioned that the more the company looks prestigious the more potentials will get attracted to the firm as being a member of the company will heighten its self-image.
DeleteSince the high staff turn over in supper market chains , we can use electronic resources as a recruitment method, typically the internet but also HR software, to guide or assist the hiring process to reduce the administrative and financial burden of recruitment and gain access to a wider pool of talent (Rutledge 2008).
ReplyDeleteTheurer, Tumansjan, Welpe & Lievens (2016) introduced an ‘employer branding value chain model’, which depicts the employer branding as a value chain. It does consist with overall framework on employer knowledge development and investment, applicant, employee mindset, firm performance and how the brand gives competitive advantage whilst enhancing the shareholder value. The third stage the model, emphasizes the organizational level outcomes that is gained through the employer brand for the competitive advantage and performance. These outcomes can be quantified through the job acceptance ratios, retention, or the turnover ratios etc.
DeletePractical Implications for employers, supplementing existing recruitment and selection methods with candidates to meet organizations’ needs strategically and in the global economy where competing for talent becomes a priority, recruitments provide a relatively safe option in attracting potential candidates and evaluating their qualifications(Thaly, 2013).
ReplyDeleteMoreover, according to Theurer, Tumasjan, Welpe & Lievens (2016) the employer branding is viewed based on three perspectives. First, in the job market perspective: that is employer branding is suggested to be used in the highly competitive job markets. Second, from a functional organizational perspective: that is the employer branding has been suggested to serve as a framework for career management programs as a novel concept in talent management. Third, from an HR cycle perspective: that is the employer branding target group has been generally considered to be both the potential employees for the recruitment and current employees for retention.
DeleteLabor or work force is the key factor of an organization before it creates, operate and maintain in order to achieve the purpose for the organization was setup (Harky 2018). Recruitment defines the process of bewitch individuals on correct time, in required numbers, and with adequate qualifications, and embolden them to find the best place with an organization (Mondy & Noe, 2008). Selection describes the aspect of choosing from a group of applicants the individual best befit for a role or a position and organization (Mondy & Noe, 2008). Selecting best personals for the best position will reduce the turnover and will provide a change to get the maximum out of them while achieving the organizational goals and objectives.
ReplyDeleteIn addition, the effective recruitment is important for an organization as it provides numerous benefits in the long run. To do effective recruitment Desseler (2014) emphasized that employers require a proper brand to differentiate themselves from other competitors and to gain competitive advantages in the labor market.
DeleteA recruitment method must be chosen which reflects employer branding and which will attract suitable candidates. The aim must be to reach not only those actively seeking a new role, but also those who may be attracted by the new challenges being presented (Torrington et al, 2014). Potential methods include company websites, recruitment agencies, trade journals, job centres, direct advertising (internet-based as well as more traditional media such as newspapers), social and professional networking and alumni groups.
ReplyDeleteMoreover, Brotheringe & McFarland (2013) claimed that a favorable image; for an example being granted the award of the ‘best employer award’ will benefit the organization to attract the pool of talents. With the grown importance of this concept, businesses around the world have begun to improve in on building their employer brand or the Employee Value Proposition (EVP). Further, the Economist Magazine reported that effective EVP management can bring tangible benefits, including a 20 percent increase in the pool of potential workers, a four-fold increase in commitment among employees and a 10 percent decrease in payroll costs.
DeleteThe successful recruitment and selection process is that the needs and offers of both organization and the individual must perfectly meet each other. The ‘fit’ in term of skills and expertise, as well as value and need. Individuals want that the organization which they are thinking of joining must offer some form of development which will enhance their resume. (Shafique,2012)
ReplyDeleteAttracting the best and the brightest is vital for a company’s survival and development since the human capital is a valuable resource that does contribute for the organization success (Xie, Bagozzi & Meland, 2015). As the talent shortage has been increased within the global context, to attract and retain the best talent in organizations the ‘employer brand’ has been significantly used during last three decades (Theurer, Tumasjan, Welpe & Lievens, 2016).
DeleteIt is clear as above, that within the retail industry, supermarkets and grocery sector contribution for job opportunities are higher. The sector, though seems dominated by two major chains and is highly competitive, with a reputation for low profit margins, mundane jobs and low pay. This sector is recognized for an employment structure that is segmented with one holding permanent jobs with core benefits and others on part-time employment with poor working conditions (Price Anne, R 2004).
ReplyDeleteThe benefits of this practice for the organisation were flexibility in labour usage and substantial wage savings, while the negative consequences were recruitment difficulties, exacerbated by high levels of staff turnover. For the employees, the consequences depended on their position in the organisational hierarchy and their individual circumstances, but involved initially accepting limited working hours and low pay in order to gain entry into the organisation. The research undertaken for this thesis leads to the development of a revised model, the casual internal labour market model, which more accurately depicts the labour usage strategies within the case study organisation (Price , 2004).
Delete