Blog

In France, as everywhere else in the world, physical trade has been devastated by the pandemic, due to the various lockdown measures implemented by governments. The majority of shops meeting “essential needs” (food, convenience store, etc.) have remained open, but the experience is radically different, whether from the customers’ or employees’ point of view. Numerous initiatives have emerged to provide a means of survival, or even growth, for these crippled organizations, while keeping security measures at the forefront. Let’s take a look at what these measures can implicate for tomorrow.

With the exception of China, where most of the country seems to plan to be “let out” of isolation by the end of April, all the other contaminated countries have taken measures to contain the population and ensure citizen safety, which is reinforced by authorized businesses.
On a French government website, one can even find “practical sheets” indicating the measures to be implemented, trade by trade.
Among the common denominators and apart from the precautions applicable to all, we can point out: the complex issues of wearing masks and gloves, of establishing safety distances marked on the ground, and reducing the number of people in the stores. Moreover, making available hydroalcoholic gel, disinfecting equipment (for shopping carts, checkout mats, and so on), installing plexiglass windows at the checkouts, and rearranging certain “non covid-compatible” sections – bulk, fruit and vegetables, pre prepared food and more.
How open businesses are managed is what can be imagined for businesses that will reopen, if their cash flow allows it. How can we imagine, in a world where we have to “learn to live with the virus”, maintaining an acceptable level of security in clothing shops (fitting rooms, etc.), beauty and hair salons, not to mention the various places of entertainment and socializing (cinemas, restaurants, theatres, etc.)?
Once the wave of astonishment is over, it’s time to prepare for what comes after; shopkeepers striving to be inventive in arranging their spaces and welcoming new ways to visit and shop. For example, a clothing store “seals off ” one fitting room out of two, however as a result, they move upmarket by positioning themselves more like a showroom.
Another example is the sport world, where many techno-gaming players are thinking about initiatives which enable a real audience to virtually visit a stadium to watch a real time match.
While these initiatives remain in unchartered waters, we can note that the pandemic has led to an acceleration in brand transformation, in which the digital relay is often the first vehicle for survival.

The major players in the GSA have long since begun their omnichannel shift: COVID is called “the hour of truth”. Revealing that while some players are keeping up at each point on the supply chain, others only keep up under certain conditions.
Without even mentioning the experience offered to the consumer via digitalization, let’s just talk about “shopping in an alternative way”. Such as, the drive and click & collect solutions, where volumes have grown exponentially as a result of the pandemic. Companies have had to adapt: with improved stock management, an efficient supply chain, optimized job descriptions, etc. In fact, many former salespeople have been mobilized for order preparation.
In hindsight, we are tempted to say that this movement has “precipitated” the urgency to think about unified trade, regardless of the size of the company. Different applications have emerged that allow small non-digital merchants to sell online as well.
The ” authorized ” businesses are also able to accommodate service providers who operate only on the markets.
From this “first wave”, we note, particularly in France, a surge of solidarity: employee “borrowing”, mutualisation of delivery strategies, service redirection and so on. It remains to be seen what changes will survive the crisis and then what lessons can be learned.

In the end, lockdown precautions have forced a majority of the population to favor local as the primary factor in their shopping choice.
Conventional loyalty strategies no longer work in periods of confinement.
The delivery solution is also often preferred. A question will arise: how to create the preference that will allow opening, or rather reopening, one’s trade area, so that the most remote customers will return?
Some companies, particularly in the DIY and automotive sectors, have favored the implementation of “quick services” that allow customers to obtain a quick response or a rapid repair. This additional service, more fluid than in normal times, can make the difference.
The various measures taken to adapt to the customer’s needs are also popular; security, reserved opening hours, etc.
In addition, companies make massive use of content production and distribution to maintain the client bond and compete in terms of innovative brand content, to stay on the top of their game.
Will these strategies come at a cost? Or will the era be resolutely one of “convenience” in the “next world”?
We can safely assume that, at least in France, the appeal of the physical store, the contact with the salesperson, the desire to be able to discuss with a “real human” still makes the difference, versus the all-digital. It will be necessary for these brands to imagine how to reconcile user-friendliness and security in the context of a gradual recovery.

https://fashionunited.fr/actualite/retail/commerces-non-essentiels-le-casse-tete-de-la-reouverture-le-11-mai/2020042123675

What Can be Learned From China as we Prepare to Open Up the Retail Sector in Canada?

https://www.businessinsider.fr/us/dark-stores-could-spread-as-nonessential-restrictions-ease-2020-4
https://www.businessinsider.fr/us/costco-walmart-target-save-lives-restricting-nonessential-items-expert-2020-4
https://www.pymnts.com/restaurant-innovation/2020/how-covid-19-is-accelerating-drive-thru-upgrades/

The global health crisis is undeniably impacting consumer habits in all countries concerned. The closure of so-called “non-essential” businesses has created offsetting effects on the various ways to sell products and services. A company’s capacity to adapt digitally as well as their flexibility in general, are proving to be key data for business survival and profitability.

According to FEVAD, 76% of e-commerce sites have recorded a drop in sales since March 15th, and for half of them, the drop is more than 50%. This probably alarming figure should definitely be put into perspective of the sectors concerned.

According to the Nielsen Institute, e-commerce would have grown 4 times faster than physical stores by mid-March 2020.
The drive is one of the major beneficiaries (+30% vs. the previous year), especially among Ile-de-France residents (+45%). With 164 million euros gained, the drive even exceeds 7% of weekly market share for the first time, the report says.
Generally speaking, home delivery grew by more than 70% at the beginning of March (vs. N-1), particularly on hygiene products and non-perishable food.

The human element: companies need so-called “low added value” labour (order preparation, delivery personnel, etc.). Some giants, such as Amazon, offer to temporarily hire employees from companies in difficulty. Generally speaking, Jeff Bezos’ company needs manpower, and goes as far as increasing the hourly wage for this category of employees, who are also particularly exposed to risks despite the measures implemented in the various countries affected (secure selection process, distancing order delivery, widespread barrier gestures in warehouses, and more).
The technological side: A company’s capacity to adapt digitally is being put to the test. Omnichannel device efficiency is being scrutinized. Yet again, omnichannel companies can be subjected to unprecedented traffic overloads of their online sales, causing “bugs” and thus generating frustration and dissatisfaction.
The logistical factor: At the beginning of April, studies shows a decrease in efficiency, due in particular to:
longer delivery times (85% of websites)
or the closure of the traditional “relay points”, requiring home delivery services to be established for companies that were not particularly accustomed to them.
Certain companies are innovating and rethinking how they fonction, such as Leroy Merlin, which is betting on reopening drives: since March 24, a goods withdrawal service has been allowing consumers to remove basic necessities and emergency products from store parking lots, despite the fact that the stores remain closed. The e-shop is adjusted to the stock available at each point of sale, thus allowing the customer to see directly whether the product is available for collection via the drive of the store in question.

After the “rush” of week 1 on lockdown, the surge in food e-sales is returning to normal, but the level is still significantly higher than before the onset of the nationwide crisis.
In Ile de France, where more convenience stores remain easily open, the food e-trade figure is levelling off.
As in other sectors, delivery times are being extended considerably: firstly on the drive, which Leclerc benefits from while Carrefour misses out. While as well on the home delivery market, where Carrefour makes way for Amazon’s Prime Now delivery service.
The meal delivery market, which had been strongly impacted during the week (-50%), seems to be stabilizing.

Many retailers in urban and crisis influenced areas are forming alliances with companies whose core business was initially focused on meal delivery to open up their business to the broader distribution market. One example is Uber Eats in Paris, which handles certain deliveries for Carrefour.

Some markets are in fact favored by confinement: video games are making strong progress, especially among Generation X (40-60 years old). As for Netflix subscriptions, their already high penetration rate skyrocketed 76% compared to pre-lockdown.
Not to mention the media sites whose traffic is exploding, and whose freemium content is driving traffic.

Fashion and home furnishings are being hit hard, as are the luxury goods sector and – of course – the travel sector. Some “historic” French brands (shoes, family holiday clubs, etc.) are making no secret of their concerns. The automobile industry has not been spared either.

E-commerce is also experiencing a new wave of activity with all kinds of websites emerging that correspond to brick and mortar brands, whether they are small convenience stores or historic shops. The ability to adapt quickly to these new channels can make all the difference, especially in terms of fresh goods.

85% of websites experience longer delivery times
29% of order cancellations
40% are experiencing supply difficulties
40% of companies do not think they will be able to withstand this situation economically for more than three months.
(Source : Fevad, a study of 136 e-commerce websites between march 23rd and march 25th 2020)

https://www.ecommercemag.fr/Thematique/retail-1220/Breves/Covid-delais-livraison-allongent-fortement-348517.htm?&utm_source=tags_169700&utm_medium=email&utm_campaign=newsletter#
https://www.ecommercemag.fr/Thematique/retail-1220/Breves/Leroy-Merlin-met-place-service-urgence-sans-contact-348243.htm
https://www.zdnet.fr/actualites/e-commerce-quand-les-entreprises-sont-encouragees-a-migrer-en-ligne-39901639.htm?utm_campaign=quotidienne_03/04/2020&utm_source=email&utm_medium=newsletter
https://www.cnetfrance.fr/news/covid-19-vs-e-commerce-les-ventes-s-effondrent-en-france-mais-certains-secteurs-sont-epargnes-39901673.htm

Covid-19 : quel impact sur le e-commerce français?

Covid-19 : Les magasins de proximité et le e-commerce privilégiés

https://www.lsa-conso.fr/coronavirus-l-impact-de-l-epidemie-sur-l-e-commerce-europeen,344990
https://www.pymnts.com/news/delivery/2020/food-delivery-companies-turn-to-grocery-delivery/
https://www.sitedesmarques.com/actualite-des-marques/confinement-covid-19-le-e-commerce-s-affole-132581.htm
http://www.leparisien.fr/economie/business/coronavirus-commerces-fermes-pensez-a-creer-votre-e-boutique-31-03-2020-8291133.php

The love that French have for gardening is no secret and the numbers prove it: nine out of ten French people have a small corner to cultivate, seven of whom own a full garden. More than one million acres of garden is planted. While each amateur gardener spends on average 290€ per year.

This passion is driven by an impressive production and distribution ecosystem: 1,700 garden centers, 1,733 self-service farm shops and 15,104 florist shops. Not to mention 3,611 French greenhouse companies, the leading suppliers to garden product distributors. (source : FNMJ).
In 2018, distributors specializing in garden and pet stores accounted for close to 3 billion euros in turnover. However, it should be noted that the sector experienced a complicated 2018 fiscal year. The National Garden Industry Federation (FNMJ) reported a negative balance sheet for the sector in 2018. “The garden centers recorded an overall 1.5% drop in turnover, cancelling out the 1.6% increase in 2017”.

Of course, curbing this pandemic requires drastic measures and sacrifices on everyone’s part. Initially, the public authorities (as of March 14th 2020) sanctioned the closure of the majority of public places, including a huge part of French businesses. Garden centers (not including pet stores) were forced to close their doors. This closure comes at the worst of times, spring, which accounts for 80% of annual sales in the gardening sector.

There were several concerns regarding this decision, which of course shook the entire sector, but specifically a significant number of gardening enthusiasts.
Eating “well”, “organic”, ” produce transparency”, “reasonable and sustainable consumption”: all these terms have a very particular resonance with gardening enthusiasts who cultivate their vegetable garden. This dynamic is a fundamental trend driven by the strategies of major food retailers. Planting, growing, harvesting and monitoring one’s own fruit and vegetable production means knowing exactly what is going to end up on one’s plate.
These numerous small stakeholders are also a reservoir of fresh and healthy products. On April 4, 2020, confronted with Covid-19, OMC, OMS and FAO warned against the risk of a global food crisis caused by a lack of manpower in the fields, logistic difficulties, and lack of employee protection in the food chain. Even if France seems to be safe from a food shortage, it is not unreasonable to anticipate the worst by imagining that we will find ourselves lacking food resources. It was also a pity to deprive ourselves of this windfall. Undeniably, gardeners contribute to food security.
Lockdown measures are extremely restrictive. Forbidding de facto the “French gardeners club” to live their passion is undeniably a source of immense frustration in this crucial period for seeds of all kinds and in turn, future harvests.
For a certain number of people, gardening also can assure a small additional income (selling, bartering, gifting) as well as the opportunity to maintain a social link with one’s community (needless to say, apart from the lockdown period).

On Wednesday April 1st, the Secretary of State for the Ministry of the Economy and Finance, Agnès Pannier-Runacher, authorised “the sale of vegetable seeds and plants, considered as a basic necessities purchase”. However, only outlets that already have their pet store and general food departments open are authorized to sell seeds and plants. From now on, retailers are adapting to welcome their customers, reviewing their organization to respect the barriers, and favoring orders by telephone.
It is also remarkable to see how neighboring countries have accepted in different ways the pandemic constraints. With regard to garden centers, our German, Belgian and Dutch neighbors immediately saw this sector as a basic necessity.

The fear of a food crisis is spreading around the world. Uncertainty about food supply may trigger a wave of export restrictions, “likely to lead to a shortage on the world market,” as the UN Food and Agriculture Organization (FAO), the World Trade Organization (WTO) and the World Health Organization (WHO) warned in a joint statement on Wednesday, April 1st;

The French market seems for the moment to be safe from such a catastrophe. The supermarkets are in place and the “food” stores are stocked. However, the food industry is undeniably under stress. The shortage of agricultural labour and the risk of losing seasonal harvests are evident. The closure of restaurants, school canteens and open markets has significantly unbalanced supply and demand. The French Minister of Agriculture and Food also stresses that “this crisis shows us the need to speed up the environmental transition and to relocate production in order to guarantee European food security”.
However, the farm-to-table distribution model shows promise for maintaining access to fresh food products. The quality of the relationship between committed customers and their fruit and vegetable producers is durable and resilient. The long-established players in local produce are experiencing significant growth in activity. A number of initiatives have been launched in recent weeks.

Grégoire de Tilly, CEO of La Ruche qui dit Oui!, reported to the newspaper Libération: “Over the past month, we have recorded a 70% increase in turnover, combined with a 30% increase in average sized carts”. Buying local and healthy products on a short circuit is a natural response from customers during this pandemic.
In the north of Finistère, France, the Voisins Bio offers weekly baskets of seasonal organic vegetables that can be retrieved at a pick-up point after booking. Voisins Bio’s management team is observing an explosion in demand. “Many people are afraid to go to supermarkets, and since outdoor markets are closed, our activity has increased tenfold!”
Last week, the famous Rungis market launched a digital delivery platform for individuals called Rungis Livré Chez Vous (Rungis delivered to you), in partnership with the Île-de-France Region and the delivery startup Epicery. Epicery brings together food retailers as well as many Ile-de-France produce retailers.

In Centre-Val de Loire, France, the public authorities and the Regional Chamber of Agriculture recently launched the Fresh Local Produce in Centre-Val de Loire initiative. The aim is to link producers, consumers and distributors. The Regional Director, Pierre Pouëssel, set the objective of “eating fresh and local”. Direct sales to consumers are organised within the “Food Drive” in the supermarket parking lots.
In a BtoB approach, Approlocal offers professionals the opportunity to join its platform (supported by the Loiret Department Council) to “participate in eating well and contribute to the local economy”. For two months, registration fees are free for large to medium-sized retailers. Already about fifteen stores have joined the loop.
The Intermarché of Cahors, France, is appealing to local producers by proposing a “win-win” partnership. A distributor who is experiencing problems with their fruit and vegetable supply and farmers who are struggling to sell their produce have formed an unusual partnership. Creating and weaving strong bonds is a unique opportunity for the brand to establish itself in local communities. There is no doubt that this above all responds to a firmly expressed customer expectation. The French want to eat local food. This is demonstrated in a study by the Natural Marketing Institute, according to which 71% of consumers prefer to buy local products.
Local consumption benefits include knowing the origin of your products. To know where they come from creates the desire to participate in the daily and economic community, contributing to the bond between people.
The crisis we are going through is changing our food consumption habits. This crisis offers an unconditional reflection on the organization of our food supply chains. The appetite of certain consumer “tribes” for farm-to-table is not new. However, it must be noted that in a logic of food safety, they are proposing a solution to which the French are turning in this period of high tension. This period also shows us the need to involve all stakeholders (customers, producers, public authorities, distributors, logistics and digital players) in order to enhance the value of the short-circuit sector. New value propositions have emerged (Rungis, for example): it is highly likely that they will continue to be part tomorrow and beyond.

https://www.liberation.fr/terre/2020/04/02/alimentation-le-boom-des-reseaux-de-circuits-courts_1783577?xtor=EREC-25&actId=ebwp0YMB8s1_OGEGSsDRkNUcvuQDVN7a57ET3fWtrS9yGYo5Z3Mqekee5yRh2buo&actCampaignType=CAMPAIGN_MAIL&actSource=501950
https://actu.fr/occitanie/cahors_46042/coronavirus-dans-lot-lintermarche-cahors-lance-appel-producteurs-locaux_32515612.html?utm_content=bufferc7cc7&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer
https://paper.li/e-1484125222#/
https://www.lanouvellerepublique.fr/loiret/coronavirus-produits-locaux-circuits-courts-vers-un-cercle-plus-vertueux

In lieu of the coronavirus health, social and global crisis, the retail food sector is subject to unprecedented tension: more motivated than ever, it is and will remain the main source of basic necessities. However, the variety of protective measures implemented for employee benefit, such as threats to retirement rights, the call for low value-added activity jobs (order preparation, etc.), puts pressure on the sector. In New York, Amazon warehouse employees are planning to go on strike to force their employer to implement appropriate health protection measures.

Where the crisis leaves us floating in a pool of unknown, both on a national and local level, we are witnessing a number of new collaborative initiatives emerging, sometimes even between competitors. Initiatives to help those most at risk, or to limit the risks. For example, giving caregivers quick access to food supplies like Carrefour, which enables hospital staff to avoid waiting on line at checkout.
We have chosen several leading examples:

An intriguing idea in these troubled times to strike a unique partnership between two historical Belgian distribution competitors. Delhaize and Colryut are joining forces to deliver food shopping to hospital staff close to their place of work. An appealing idea, however with a complex implementation, notably a robust logistical organisation necessary for successful delivery.
The roll-out was near the Antwerp University Hospital: caregivers were asked to book ahead of time on Delhaize’s website. Their groceries were delivered to them free of charge nearby. The service is provided by Solucious – the group’s foodservice specialist, which supplies food products to professional clients – based on the assortment offered by the Colruyt Group. The service is centralised in conjunction with the hospital’s logistics department in order to decrease processing time and guarantee the necessary precautions.

While the Aldi employees are particularly in demand, McDonald’s staff has been reduced to those responsible for online and drive-through orders.
A national effort has been put in place through a “personnel pact” allowing McDonald’s employees to help Aldi’s understaffed teams.
The temporary contracts allow employees to return to their initial position once the crisis is over; the objective is to find quick solutions to guarantee food supply to all Aldi branches, on a national scale.
The salary offered by the discounters, as well as Sunday work, could bring in extra money for the employees. The CEO of McDonald’s Germany advocates a “win-win solution” to the crisis.

Lyft, a distribution company specialising in non-food products, which faces difficulties due to containment measures, has partnered with Amazon to offer their employees various positions.
From joining the delivery staff, particularly in the food sector, to working in the warehouses and in order preparation, Amazon has opened its doors.
This is an important human windfall at a time when Amazon is accused of not guaranteeing ideal protection conditions for its employees.
Lyft employees can now apply directly on a dedicated section of the Amazon website and benefit from advantageous salaries.
The company states that no very specific experience or CV is required to be able to apply: total openness or misplaced opportunity ?

Starting 6 April, the two brands joined forces for large-scale deliveries, first in the Paris region, then nationwide.
What could look like a “classic” partnership – for example, Carrefour’s partnership with Gloco – for simplified delivery, seems to be an almost ” mandatory ” shift in scale due to the exceptional measures in place in France.
The orders are supplied by Carrefour, while the deliveries will be made by Uber Eats: the objective is to “combine the strength of Carrefour’s preparation stores and the agility of the Uber Eats application”, says the digital and e-commerce director of the brand.
We can imagine an underlying shared business model.

A similar initiative in China, where the “distribution giants” are inviting traditional businesses employees (restaurants, etc.) to join the effort in trades with potentially lower added value, requiring a large increase in manpower (order preparation, delivery, etc.).
Alibaba and JD.com, for example, are borrowing employees from the restaurant industry, or from other trades that are likely to be in difficulty (local shops, karaoke bars, etc.).
In China, the phenomenon is taking on massive proportions: can we talk about “self-service labour” as we used to talk about uberization? We shall have the answer once everything is back to normal…. Or the day after.
From a legislative point of view, in China, these initiatives are said to be “framed” by programs to protect wages and social insurance benefits – on behalf of the main employer: this is what the Chinese Ministry of Human Resources and Social Security is committed to.
For example, the Freshippo company, owned by the food giant Alibaba, has employed former employees of restaurants and karaoke bars in Shanghai, Beijing and other cities – the same thing with 7Fresh, a branch of the JD.com group.
These “sharing” programs officially allow employees to belong to two companies at the same time. Freshippo thus pays those on loan, who are still under contract with their original employer.

Lack of manpower, logistics and distribution disruption, import shortages… The Covid-19 crisis is causing fresh produce shortages, even if the shortage threat does not yet loom large in France.
The second threat is the lack of personnel needed to supply fresh produce. Food processing (slaughterhouses, packaging, preservation, etc.) is an industry that requires a large number of employees; the contamination risk between employees is therefore high. It is essential that everything possible can be done to protect people working in this sector.
During harvest time, European fields also depend on a massive, flexible and cheap labour force. Most of these seasonal workers come from Eastern Europe and North Africa. But with borders closed, the European Union risks having to do without this shadow army, which is essential to agriculture.
This period saw the birth of new, virtuous partnerships… However, it remains to be unseen how these contractual changes are likely to shake up, with force, the employment systems in the countries impacted.

https://www.chargedretail.co.uk/2020/03/30/amazon-staff-to-strike-until-the-building-gets-sanitized-after-another-employee-contracts-virus/
https://www.chip.de/news/McDonalds-und-Aldi-arbeiten-zusammen-Das-hat-sich-jetzt-in-den-Filialen-geaendert_182574920.html
https://www.chip.de/news/Damit-Supermaerkte-geoeffnet-bleiben-McDonalds-und-Aldi-machen-gemeinsame-Sache_182563577.html
https://www.theverge.com/2020/3/27/21197699/lyft-amazon-coronavirus-ridership-decline-job-referral-warehouse-grocery-delivery
https://www.bloomberg.com/news/articles/2020-03-27/amazon-teams-up-with-lyft-to-recruit-drivers-for-deliveries
https://www.ecommercemag.fr/Thematique/retail-1220/Breves/Covid-Carrefour-associe-Uber-Eats-livrer-consommateurs-348428.htm?&utm_source=ecv_01_04_2020&utm_medium=email&utm_campaign=newsletter
https://korii.slate.fr/biz/chine-entreprises-covid-19-partage-main-oeuvre-flottes-travailleurs-location-libre-service?utm_source=La+kotiidienne&utm_campaign=848f55fc77-EMAIL_CAMPAIGN_2020_03_30_09_16&utm_medium=email&utm_term=0_bcc0e283b6-848f55fc77-131863525

Founded in 1982 by aeronautical engineer turned Buddhist monk Bernie Glassman, the Greyston Bakery social enterprise, specialising in baked goods preparation, is committed to providing jobs and professional training to those who experience difficulty finding work.

The Open Hiring® program launched by Greyston Bakery is based on the idea of investing in human potential by hiring the first applicants whom apply for a job. With no CV to present and no criminal record to disclose, all that matters here is responsiveness.
This innovative and revolutionary recruitment policy is an integral part of the brand’s DNA and is considered a fundamental part of its strategy. “We don’t hire people to bake brownies, we bake brownies to hire people” is one of the mottos of the US brownie manufacturer, which notably supplies Whole Foods and ice-cream manufacturer Ben & Jerry’s.
Over 6 million people in the USA are unemployed and a typical recruitment process is estimated to cost over $4,000.

“In moving away from background checks, we are leading the battle by showing companies that switching to a more progressive model of inclusion pays off”, a spokesperson explains on behalf of the brand’s CEO, Mike Brady. Greyston Bakery achieved a turnover of $22M in 2019.

Make no mistake, Greyston Bakery’s recruitment strategy also makes it possible to identify high-potential profiles that could become future senior executives, offering a new take on the famous American dream by providing a better life and opportunities for everyone. Ordinary people, starting out with nothing, can make a fortune in the United States, the country where anything is possible.

The Open Hiring® policy can be seen as an initial response to the disruption that the labour market is set to experience in Western societies.
How will companies in the future be able to identify and attract new talent if unemployment levels fall dramatically? Olivier Passet, Director of Synthesis at Xerfi, explains that “the first disruptive element is the increase in the working-age population. At full capacity, the increase in the active population is clearly much less today than it was in the past, and this will be the case for some time to come, given the demographic background. Ultimately, during a period of growth, it now takes fewer than 100,000 new jobs to reduce the number of unemployed people, whereas it would have taken 200,000 to 300,000 in the 2000s”. With the arrival of the digital age, the ageing of the population and the dependency problem, we are witnessing an explosion in the number of small, low-productivity service and logistics jobs.
The fact remains, however, that the recruitment policy adopted by Greyston Bakery is inspiring other brands, with English cosmetics retailer The Body Shop also declaring that it operates an ‘open recruitment’ policy. The model could also be adopted by all of the mission-oriented* companies that are currently emerging.
However, an Open Hiring® policy does require flawless management with the ability to train and support new employees. Is it really possible to apply such a human capital policy where high-added-value positions that require demanding skills and expertise are concerned?
*A new type of commercial entity that has a social or environmental purpose as well as seeking to make a profit.