Consumer & Retail: Embracing the challenge to hierarchical structures
Organizations share strategies for engaging and attracting a new generation of leaders in the Consumer and Retail sector.
Consumer goods companies are navigating rapidly shifting consumer preferences and the opportunities and challenges brought by different, evolving channels to market. With new entrants sparking innovation, organizations must seek leaders who can adapt and respond effectively to meet these demands. Many businesses are seeing the leadership baton increasingly passed to Millennials, with Gen Z becoming a significant percentage of the workforce.
Lucie Shaw, Managing Partner at Amrop UK and Co-Leader of Amrop’s Global Consumer Practice, share reflections and insights from the sector: “Demographic shifts are already having a significant impact on our leadership talent pipeline. As more Gen X and Baby Boomer employees retire, Millennials are already struggling to step into their shoes, without considering the upcoming transition to Gen Z. Recognizing and addressing the specific needs and aspirations of these new generations of leaders and employees is crucial - it pays off to incorporate their unique perspectives and contributions for long-term growth.”
Amrop asked leaders of a number of organizations within the Retail and Consumer sector what, if any, strategies they are implementing to engage and attract the emerging generation of leaders. Here’s what the CEO of a privately owned consumer durables company in the UK said:
“In terms of strategies for our younger generation of leaders, most of the work here is being done at our online company - just under a quarter of its workforce are Gen Z, and therefore it becomes more important to get right and lead in this space as opposed to the Sister Company, where less than 10% of our colleagues are Gen Z, and many of them either work in our warehouses or are in administrative roles.
As a result of our exposure to this generation, I would say that we have found these colleagues to be digitally native, of course, possessing a greater willingness to challenge hierarchy, and a higher degree of social and environmental awareness that they expect us to support. We have a purpose and a set of values, and it is more important than ever that they are not simply words on a poster on the walls, but rather that we live and breathe them and demonstrate our commitment to them. We have removed job descriptions and replaced them with Purpose and Performance Profiles which clearly define our brand, values and what leadership looks like in our organization. We have changed our formal appraisals and introduced "Be your Best You" conversations - we are supporting line managers to be more skilled in coaching and mentoring so that these conversations can actually be valuable for both parties.
Across both organizations, we have also introduced employee committees to underpin and drive one of our five priorities of "doing good, doing well". 
We also have a network of mental health first aiders, and of course, with everyone else, we are constantly evaluating our hybrid working policy and ensuring that we are better at managing to outputs rather than time served. Our recruitment language and style (for example, our company is being classed as a Great Place to Work, which has had a positive impact for us) has also become more informal, more real, showcasing real colleagues and also sharing, for instance, a bloopers video of outtakes.”
In a nutshell
- The company recognizes the generation's comfort with technology and online communication and thus priorities digital proficiency and engagement.
- Gen Z employees are permitted to voice their opinions and challenge traditional leadership hierarchies.
- The company emphasizes living out its stated purpose and values, which is crucial to attracting socially and environmentally conscious young leaders.
- Job descriptions have been replaced with Purpose and Performance Profiles, redefining what leadership means within the organisation
- Recruitment strategies focus on a more informal and authentic style, showcasing real employee experiences.
Another response came from a People Director at a £1bn private-equity owned hospitality company:
“As technology is coming in to do the technical jobs, the role of the leader is becoming ever more human – however, this is a gap for the generations coming through, who often fall a bit short of that human leadership element, especially since the COVID-19 pandemic, and that is making it really hard to find the right caliber of leader. When it comes to the ways we support the younger generation of leaders, it’s crucial that we find balance between needing to manage for swift progression versus having to build a solid foundation, especially within a hybrid environment. Likewise, as AI comes through, we are hoping to use AI tools to practice coaching and difficult conversations: we see it as becoming an invaluable tool for L&D.”
In a nutshell
- Technology is shifting leadership to emphasize human qualities.
- Finding a balance between rapid advancement and solid foundational skills a must in hybrid environment.
- AI tools will enable leaders to hone coaching and difficult conversations, making them valuable for L&D.
Find out about Amrop’s Consumer and Retail expertise, methods and tools, by contacting Lucie Shaw or our local Amrop Consumer Practice Partner in your country!