Human resource technology in retail is most effective not just when using advanced systems, but also when it supports frontline employees in transforming store space into a more engaging customer experience, PTI reported, citing recent research.
The report cited a study conducted by researchers from the Goa Institute of Management (GIM), Indian Institute of Management (IIM) Ranchi, and the University of Missouri, Kansas City, USA, which has been published in the International Journal of Sociology and Social Policy.
The study indicated that, within the social and technological context in which firms function, their strategic decisions influence their HR strategy, which eventually directs technology choices.
The research, released amid pressure on Indian retail leaders from competitors and consultants to digitise human resources and workforce management, indicates that merely adopting the technologies popular among large global retailers can be ineffective in many retail settings.
“In retail, technology does not create value, frontline employees do. The real question is not what technology exists, but what helps a store earn more per square foot profitability with the people it already has and in the location it operates,” Anamika Sinha, Professor, Organisational Behaviour and Human Resource Management, GIM, told the news portal.
“Socio-technical thinking helps leaders make disciplined choices instead of expensive mistakes,” she added.
Importance of right technology
The study also mentions that using the right technology with frontline employees not only boosts sales, basket size, and customer engagement but also enhances the utilisation of store resources to achieve these objectives.
Retail formats vary significantly in location strategy, customer traffic, price sensitivity, and labour intensity, it added.
These differences reflect frontline staff need different levels of autonomy, and technology may need to assist, replace, or simply stay out of the way.
“Many retail technology investments ignore these differences, resulting in higher costs without better results,” Sinha said.
She further mentioned that the main factors driving productivity improvements include digital literacy among frontline staff, inventory management systems, and training programmes that enhance assisted selling capabilities.
Additionally, operational factors such as store layout, hiring practices, supervisory behaviour, and peer-driven learning culture also affect whether technology facilitates or hinders progress, Sinha said.
Sinha noted that data-driven recommendations generally perform better in premium stores. “In high-frequency hypermarkets, staff guiding customers through crowded aisles can save time, raise basket size, and build loyalty,” she said.
The research indicates that technology neglecting social and operational contexts tends to introduce more complexity than it enhances performance.
The largest gains were seen where technology supported employee judgment, enabling staff to act as informed sellers rather than simply processing purchases, it said.
“The research shifts focus from the adoption of technology to that of value, defining human resource technology as a retail store display and not as a strategic benefit,” Sinha said.
Challenging the idea of universal best practices and opposing the retail industry by rejecting the use of technology. Unlike other studies, it assesses the realities of retailers, which are not necessarily best practices, Sinha said.
