IHLConsulting GroupThe Future of Workforce Management for RetailersAnalysts Lee Holman, Jerry Sheldon, Greg BuzekDate Released: 1/14/2005The Future of Workforce Management for RetailersIHL Consulting Group1064 Cedarview LaneFranklin, TN 37067+1 615-591-2955 Phonewww.ihlservices.comAbout IHL Consulting GroupWhoWeAreIHL Consulting Group, a wholly owned subsidiary of IHL Services, Inc., is an independent business-consulting organization headquartered in Franklin, Tennessee. We specialize in business consulting, professional and technology referral, market analysis and business planning for retailers and information technology companies that focus on the Retail industry.WhatWeDoWe provide market research and business consulting in the area of information technology as it is deployed in the Retail Industry. Our customers are retailers, consulting firms, consumer products manufacturers and retail technology providers who want to better understand what is going on in the overall technology market, or wish to identify specific equipment needs for the retail market.WhenWeStartedGreg Buzek served as Product Development Manager for two Fortune 500 retail technology suppliers for 6 years. Faced with making recommendations to senior management based on spotty external research reports stuffed with technical jargon and unsubstantiated data, in 1996 he left to form IHL Consulting Group as an arms length consulting firm that delivers exacting research to corporate managers. HowWeWorkReliable market analysis is essential for corporations to accelerate revenue and expand their market share. Most research providers do not disclose data sources or statistically defend the validity of their assumptions. We do. We disclose in precise detail exactly how and why we reached our conclusions so that our customers can be comfortable with the data they are using. WhatWeKnowOur associates and advisors have combined over 100 years of retail technology experience. Our associates have worked as product managers, sales representatives, teachers, trainers and executives in the retail market. We have the relationships, tools, and experience to meet your research and consulting needs. Table of ContentsIntroduction4Background and Objectives4Workforce Management Defined4Labor Scheduling Defined4Time & Attendance Defined4Key Economic Trends Affecting Retailers5Rising Labor Costs5Union vs. Non-Union Labor5Lack of Available Workforce5Lack of Workforce Loyalty6Price Pressure6General Economic Conditions6Labor / Workforce Pain Points for Retailers8Challenging Labor Force8Training Needs8Shrink is Home Grown8Does it Translate to Retail?8Integration with Other Applications9Key Technology Trends Affecting THE WORKFORCE10Browser Based Design10HQ Hosted vs. Store-Based Server Location10Staffing vs. Service Levels10Broad Application Suites vs. Point Solutions10Looking Ahead, Whats Next?11Are They Really “OS Agnostic”?11What About Hardware?11Application Enhancements Going Forward11Survey SaidWhat About 2005 and Beyond?12Best Practices Awards13Aramark Providing those Hot Dogs at the Game Just went Hi-Tech13American Eagle Outfitter Labor Scheduling takes Retailer to new Heights13References15INTRODUCTIONBackground and ObjectivesThis report addresses the various aspects of Workforce Management Systems, including Labor Scheduling and Time & Attendance, as applied to retailers. Specific key trends in both retail and technology are addressed, as are the pain points for retailers. Some of the specific Workforce Management issues facing retailers will be touched on and some examples of best practices will be presented.Retail in the early part of the 21st century has been impacted by many factors, not the least of which is competition caused by some members of the GMS retailing group. Mass Merchants in general and Wal-Mart in particular, are responsible for the margin pressure that every retailer feels. Wal-Marts supply chain system efficiency, coupled with their data warehousing capabilities and sheer size has allowed them the flexibility to pressure suppliers and increase efficiencies. In an effort to not just grow but to compete with Wal-Mart, other retailers are forced to compete differently; some with mergers or divestitures, others with targeting key demographics and focusing on increased service. Along with the retail trends there are key technology trends that continue to impact retailers as we approach 2005. Customers are becoming savvier as the use of the Internet increases. Security has been boosted at physical locations as well as over the Internet due to terrorism, virus, and hacking fears. In 2004, we have seen the continued consolidation of the retail software market, with at least two acquisitions of excl