The Advisor Effect: Driving Retail Success by Re-Imagining the Role of the Client Advisor
Over the past decade, the luxury retail labor market has undergone a major transformation, driven by technological advancements, changing consumer behaviors, and shifting employee expectations. Contrary to the belief that the advent of e-commerce and omnichannel would spell disaster for bricks and mortar and that retail would face a proverbial apocalypse, the exact opposite happened: Notwithstanding the temporary store closures brought on by the pandemic, bricks and mortar not only prevailed but experienced a resurgence in demand for in-store experiences. In-store, the quality of those experiences is often the factor differentiating one brand from another, further underlining the importance of the client advisors in helping to deliver these superior experiences. This evolution has presented both challenges and opportunities for luxury brands, reshaping the role of retail teams and the strategies employed to attract and retain top talent.
One of the most notable changes has been the increasing demand for digital proficiency among luxury client advisors. As brands have embraced omnichannel strategies, they are now expected to navigate complex clienteling apps, engage with customers through social media, and facilitate virtual shopping experiences.
Brands now face significant challenges in attracting and retaining talent in this evolving landscape. This represents one of the major pain points for luxury brand operations. The luxury sector competes with other retail segments, such as tech companies and startups that frequently offer more competitive salaries and benefits.
Some luxury brands have increased base salaries and reassessed commission structures to address this.
Another challenge is the need for ongoing training and development to keep pace with rapidly changing technologies and consumer expectations.
From the employee perspective, voices call for more than just competitive compensation. The post-pandemic pent-up rush on luxury and the labor shortage has led to many luxury client advisors feeling burnt out and seeking employment in other industries. Luxury client advisors, particularly millennials and Gen Z, seek employers offering clear career progression paths, ongoing skill development opportunities, and the promise of work-life balance and flexible scheduling. Because of the pandemic, while initially a temporary solution, flexible scheduling and hybrid work have become seemingly permanent expectations and accommodations for employees. In addition, many regard their chosen career and professional role as more than a means to an end. They desire a sense of purpose and alignment with personal values through their work.
Sustainability and ethical practices have become increasingly important to consumers and employees in the luxury sector.
In his book “Drive: The Surprising Truth about What Motivates Us,” Daniel Pink outlines the three-pronged framework of Mastery, Autonomy, and Purpose and makes a convincing argument for the fact that beyond compensation alone, employees require the achievement of these three factors to feel fulfillment in their work. This approach supports intrinsic motivation and leads to better outcomes. Employees can achieve greater competence by striving for “Mastery,” supported by ongoing training and skills development. “Autonomy” is important as it represents the ability to have agency over and direct one’s career, supported by clear career paths and empowering leadership. Finally, “Purpose” encompasses the fulfillment of contributing to something larger. In addition to compensation factors, brands must consider these motivational concepts when crafting and reinforcing their value proposition and employer branding to prospective candidates.
In response to these evolving demands, luxury brands are reimagining their employer value propositions (EVP). Many are highlighting unique aspects of working in luxury retail, such as access to exclusive products and high-profile events. Others are emphasizing their commitment to employee well-being and personal growth.
As the luxury retail landscape continues to evolve, brands that can adapt to changing labor market dynamics—offering compelling career opportunities, embracing technology, and aligning with employee values—will be best positioned to attract and retain the talents needed to deliver exceptional luxury experiences in the future. These are just some of the high-stakes requirements that more and more employees are becoming very vocal about.
