Developing a career path in retail - A Harrods case study

Harrods of London is a British institution. It is probably the most well-known and respected retail store in the world. For 162 years, Harrods has built its unique reputation supported by its key brand values British; Luxury; Innovation; Sensation; Service. Harrods employs approximately 5,000 people from 86 different nationalities who deal with up to 100,000 customers a day at peak times.

Harrods needs employees who can face the challenges that its reputation and standards bring. It needs people who are looking for an exciting and rewarding long-term career with responsibility and prospects. Its challenge is to find (and retain) employees with the right mix of skills and abilities, who can be developed to become the managers of the future.

To achieve this, Harrods has to counter some of the negative perceptions about working in retail. Working in a shop has traditionally been seen as low-skilled with long hours, poor pay and little chance of promotion. However, because quality is key at Harrods, employees are well-paid, respected and have clear career paths open to them. Senior managers at Harrods have come from all walks of life and started out with various levels of qualifications. All have benefited from development opportunities provided by the company.

Diverse backgrounds

Harrods employees come from diverse backgrounds and different nationalities. They have differing levels of competency, education and experience. Harrods offers comprehensive Learning & Development opportunities. These opportunities are offered at a variety of levels to suit the needs of all Harrods employees. These range from workshops for Sales Associates and Warehouse Operatives to developmental programs for senior managers.

Identifying key competencies also helps Harrods to design its recruitment process to ensure that it attracts the best candidates. They must have the right approach to sales, customer service and decision-making and support the theatre of retail that underpins Harrods reputation. This is about flair, showmanship and expertise. Harrods Learning and Development department must be proactive in responding to changing customer needs. For example, Harrods has introduced cultural awareness training for employees better to serve the increasing number of customers from the Middle East, China, Brazil and Russia.

Each Business Competency is supported by workshops so that every skill can be improved. Learning is offered off-the-job in bite-size sessions. These sessions give employees the chance to learn more effectively over a much shorter period, reducing time away from work and bringing a tightly focused approach to skills development. They have been described as concise and punchy and a workshop typically lasts 90 minutes. All the Business Competencies are supported by self-help guides which are run either on-or off-the-job and include activities such as observation and review, reading, and one minute guides offering top tips and tactics.

Developing a career path

Harrods stands out from its competitors by providing a wide variety of development opportunities for all employees. This means the business can recruit and retain good managers and maintain improvements in sales and business performance. Individuals self-esteem and motivation is raised. Once a year, managers talk to employees about their progress and ambitions during appraisals. Employees then identify their personal development targets.

• The sales and service programs include the Harrods Welcome. This induction provides essential training for new employees, such as Harrods brand values and The Theatre of Selling. Other courses ensure the effectiveness of Harrods sales associates:
• Your Theatre is a two-day program to improve sales skills and provide the highest level of customer service. It introduces the idea of selling as a theatre requiring specific skills and expertise. The Theatre of Selling element covers personal presentation, effective questioning, product selection and closing the sale. The Science of Selling develops employee awareness of customer types and needs.
• The Harrods Fashion Program is run in partnership with the London College of Fashion. It enables sales associates to understand the entire product journey from design to sale.
• The School of Communication offers voice, body language and presentation skills workshops.
• For suitable candidates, the Harrods Sales Degree provides the high level sales skills the company needs. This is the first and only degree of its kind in Sales. It is recognized globally and can be completed in two years.
• High Potential programs are concerned with succession planning. They are aimed at ensuring there is a strong pipeline of potential senior managers. The Harrods Management Program develops ambitious and career-focused employees into a management role.
• 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.

Providing development opportunities is a key factor in how Harrods maintains its high levels of employee retention. The business looks after its employees and helps them along their career path. As a result employees are loyal to the company and continue to offer exceptional levels of commitment and service.

Question 1- Discuss the challenges faced by Harrods learning and development department in developing an effective program. (2 Marks)

Question 2- What are the components used by Harrods to develop their employees? (3 Marks)

Question 3- In your opinion, does the learning and development program of the company show the characteristics of effective management development program? (PLEASE ANSWER WITH REFERENCE TO THE CHARACTERISTICS) (2 Marks)