The Olympic Games present a huge opportunity and challenge for the HR community; 34,000 permanent positions are expected to be created together with 15,000 jobs in the construction phase and this is only in Stratford.
The decision of the IOC to award the 2012 Olympic Games to London was greeted with much euphoria in Trafalgar Square and throughout the UK. There is little doubt that many sectors of the UK economy will be anticipating an upturn due to the ‘Olympic Effect’.
A number of key industries will benefit. There is little doubt that construction will prosper, after all it is the regeneration aspect that is widely credited with winning London the bid, as will the housing sector in this area, with 4,500 new homes being constructed. With over 2,000 new hotel rooms and a huge influx of international and national tourists there will be a substantial increase in the leisure, entertainment and hospitality sectors too.
One of the largest existing UK employment sectors – retail – will also be dramatically affected. Over 6,000 jobs are expected to be created in the retail element of the 1.5 million square feet of Stratford City, which will compromise 100+ retail units and three anchor stores.
The planning application for the Stratford City area includes over 2,900m2 of new retail floor space ready for the games and an additional 9,654m2 would occur as a legacy of the games. By 2007 Stratford City will be just a 10 minute journey from Kings Cross. This will have a significant impact on the retail economy.
A key issue affecting HR professionals within the retail, and indeed hospitality sectors, is staff retention. Skills within these industries are often transferable – customer service, presentation and flexibility are essential for both types of work. With the wealth of job creation, businesses are going to have to work harder to improve loyalty and hold on to their valued employees. Yet how is this to be achieved?
Early communication of any planned expansion due to the Olympics is key. If employees are aware from the outset of the opportunities for promotion, extra responsibility or chances to develop their skills sets – such as expansion into a new area of retail – they are far more likely to engage with their work and remain loyal to the organisation.
As retail activity increases across the board, it is inevitable that a number of skills gaps will emerge.
Whilst many businesses may procrastinate and convince themselves that with seven years to go, they need not worry unnecessarily, it makes sense for retailers to begin planning their additional training, attraction and recruitment strategies sooner rather than later.
Furthermore, the uptake in consumer spending within the industry means that businesses will need to recruit faster and more efficiently than ever before. As a consequence, security will become an increasingly business critical issue, leaving HR professionals with less time to check references and follow up on employee claims.
Companies need to act now, and investigate technological and e-HR systems to ensure they are fully equipped to handle the demand for their businesses products and services.
One of the major challenges facing HR professionals in the retail sector leading up to 2012 is to ensure that their plans and activities are closely aligned to those of the tourism sector to achieve maximum synergy. Yet with such a wealth of attractions available and competing for tourist pounds in London, this will be difficult.
In the short term, just prior to the Games, the positive impact of the decision on London consumer confidence will provide a stimulus for increased retail spending.
In the mid-term there is the benefit of more employment – creating a prime opportunity for the HR profession to make a real impact on the UK economy by enabling businesses to respond to and deal with increased demand. In the long-term, The Olympic Games provides a real opportunity for provincial and national economic development that benefits all of the UK.
John Salt is commercial director for Retailchoice.com
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