SINGAPORE — The labour-starved retail industry will be getting a leg-up over the next five years to implement more manpower-lean practices and schemes to train and retain workers under a plan launched today (Dec 10).

The Singapore Retailers Association (SRA) told TODAY that more than 40 per cent of frontline positions in the industry still remain unfilled, and the figure is unlikely to change because of current restrictions on foreign manpower. 

The new manpower blueprint by SPRING Singapore and the Singapore Workforce Development Agency for the retail sector includes a study starting next year that will involve up to 30 retailers from different industries and company sizes. 

The study will identify training and skill needs for the sector, and offer guidelines for companies to adopt leaner manpower models and create higher value-added job roles.

During the second stage of the study, retailers who are keen to implement the findings can tap into grants offered by SPRING. The guidelines from the study will serve as best practices for industry players — mostly Small and Medium Enterprises (SMEs) — to learn at a quicker pace and from each other, noted Manpower Minister Lim Swee Say at the plan’s launch.

According to SPRING, small retailers with annual revenues of less than S$10 million make up 98 per cent of the retail sector.

Under the new manpower plan, up to 100 retail companies can also revamp their existing human resource (HR) strategies to improve on their compensation, and learning and development aspects. Companies will be able to receive up to 70 per cent in funding from SPRING, while employers can also tap into SPRING to review and give recommendations on current HR practices. 

Other measures to help the retail industry include piloting new job roles for interns so as to equip them with skills needed for future jobs, and programmes to support existing staff with skills upgrading and leadership development.

Decks, a fashion retailer that carries brands such as Surfers Paradise, was hailed as an example for the retail sector at the launch today. 

The company has invested about S$700,000 in a Radio Frequency Identification (RFID) system — receiving Government grants of close to 85 per cent of its investment cost — which has helped to cut down on manpower needs. According to the retailer, in the past, its annual stock-taking took up to 600 hours with an accuracy rate of  88 per cent. But by using RFID, it is now able to complete its annual stock-taking in five hours with 99.8 per cent accuracy.

Decks’ sales supervisor Lilian Yeo, 58, said it is a matter of getting used to using technology in her work. By reducing the time needed to scan clothing piece by piece for stock-taking, “it is more convenient now and I have more time to interact with customers”, she added.

SRA’s executive director Anthony Gan noted that providing funding will encourage retailers to adopt technology. However, he noted that this might be more applicable to larger companies that have the resources to tap into technology more cost-efficiently. “Technology can help some retailers, such as self-checkouts at supermarkets and other large retailers ... but for many, technology cannot help, and the need for staff will remain,” Mr Gan said.

Robinsons & RSH Group of Companies group human resources director Chee Nian Tze noted that it is still a challenge to attract Singaporeans to work in the retail industry. The company is currently looking into using technology to take over routine jobs so that its employees can focus on serving customers.

“(But) the challenge is to convince the employees not to feel insecure about job loss, but that technology will help them to (do) more meaningful and interesting work,” Ms Chee said.