S&R Membership Shopping

Emmanuelle Salazar is an award-winning subject matter expert with a solid track record of over two decades in the industry. Having served several HR leadership designations, Salazar has spearheaded numerous restructuring programs, mergers, acquisitions, organizational integrations, and regional expansions.

Currently, as the Vice President of Human Resources at S&R Membership Shopping, Salazar is renowned for transforming the conventional HR approaches. His dedication to delivering value-added HR solutions and services is instrumental in driving business profitability and bolstering employee engagement.

In an interview with Manage HR, Salazar shares his insights on the challenges and emerging trends in the HR industry and modern ways to adapt to the upcoming changes.

Could you describe your current role and daily activities in your organization?

My leadership extends to an HR team that serves around 10,000 employees across the Philippines. Our business model includes 26 membership clubs, which operate as retail outlets, alongside 55 quick-service restaurants and a comprehensive supply chain division.

Collaboration with our leadership team is a cornerstone of my role, where I act as a strategic ally. The core of our business being labor-intensive necessitates a focus on HR strategies that mirror the company's efficiency and profitability goals. Thus, my emphasis lies in devising HR solutions that are both cost-effective and impactful to the company’s financial health. Beyond personnel management, my role is integral to harmonizing HR initiatives with our business trajectory.

Day-to-day, my oversight extends to the HR service delivery team, responsible for pivotal transactional roles, including benefits, compensation, payroll, and recruitment. Equally important is my coordination with HR business partners assigned to various business units, ensuring a seamless melding of HR services with internal client needs. The management of centers of excellence also falls under my purview, encompassing talent development, performance management, succession planning, and technical training.

What are the key challenges you encounter in the retail industry, and how do they affect the services you provide to your employees?

The primary issue we face is finding individuals with the required competencies and capabilities to fulfill our business demands. This could stem from multiple factors; the readiness of academic institutions to tailor their programs to business needs, or the workforce’s job preference outside of retail.

Even if we have acquired the talent, the next significant challenge is retaining them. Despite ample opportunities in our organization, we face difficulties maintaining our workforce. Factors such as ‘The Great Resignation’ and the allure of new opportunities in other sectors like business processing or offshoring contribute to high turnover rates, not just in operations but also in support functions. The current job market heavily favors job seekers, offering them numerous alternatives. For example, drivers in our business might find more appealing options like managing their own online businesses instead of working in a traditional setting.

Technology presents another hurdle. The retail sector generally lags in adopting new technologies. While the workforce adapts to mobile and other tech advancements, retail has limitations, such as restricting mobile phone usage during work hours. This gap in technology adoption is a challenge in enhancing our business efficiency.

Economic factors also play a role here. The Philippine retail industry is susceptible to commodity prices and competitive pressures. Although some businesses thrived during the pandemic, the playing field has shifted, with digital commerce gaining prominence over traditional brick-and-mortar stores. Our predominant model is still in-person, but the market shift towards digital commerce adds pressure to transform and adapt.

“Automation in HR is not just about efficiency; it’s about elevating our role to that of strategic partners who can significantly influence business outcomes.”

To remain viable, we must continually evolve our business approaches. This necessitates a shift in the capabilities we require from our workforce, creating additional pressure for HR. We are transitioning from traditional roles like cashiers and clerks to more technologically adept positions. This transformation in our business model places a significant burden on HR to adapt our strategies to meet these evolving internal demands.

Considering the challenges technology brings, could you elaborate on how it has transformed the way you provide services to your internal stakeholders?

Embracing technology amidst a multi-generational workforce certainly presents its unique set of challenges. While remote work isn’t applicable in our retail setting, the diverse age range of our employees adds complexity.

I believe the essence of digital transformation lies not just in acquiring advanced technology but in the readiness of our people to embrace it. Having cutting-edge software is futile if the workforce isn’t prepared or equipped to leverage it effectively.

In HR, numerous aspects require automation for efficient service delivery. We are witnessing the most sophisticated human capital management solutions, capable of streamlining operations and enhancing our HR functions. For instance, productivity is a critical measure in the retail industry, hinging on customer service and output. Our focus on maximizing efficiency calls for accurate monitoring of these productivity metrics, which is where technology plays a pivotal role.

We have also transitioned from manual to semi-automated systems and are now exploring HR systems that can capture and analyze detailed productivity metrics. This includes attendance, performance, and matching workforce capabilities with job expectations.

I am particularly excited about the potential of advanced HR analytics and Generative AI to revolutionize how we manage HR functions. Such technologies can facilitate more insightful discussions with stakeholders about our human resources.

The more we automate and leverage HR technologies, the more bandwidth my team and I gain to focus on strategic, value-adding work. Automation in HR is not just about efficiency; it’s about elevating our role to that of strategic partners who can significantly influence business outcomes.

What advice would you offer to emerging HR leaders who are just starting their careers?

My guiding principle for new HR professionals in my team, which I always emphasize, is the importance of rapid and extensive learning.

I often say, “Learn as fast and as much as possible.” It is crucial to continuously empower and educate oneself, gaining a deep understanding of how the business operates. This understanding is vital to comprehend how one’s work contributes to the broader business objectives.

Moreover, the HR body of knowledge has expanded significantly, offering a wealth of information to grasp. Moving beyond traditional HR functions like payroll and training, it is essential to embrace areas like HR analytics. It’s not enough to monitor attendance; one must also articulate how it correlates with business results. This era demands accelerated learning to keep pace with rapid global changes.

It is equally important to have the courage to question conventional HR wisdom. With over two decades in HR, I have learned that what was relevant 20 years ago might not hold the same significance today. Continuous engagement with professional HR communities and staying updated, especially in the technological realm, is crucial.

The future of HR is intertwined with technology, including emerging areas like generative AI. While these technological advancements are significant, they cannot replace the human element in human resources. HR professionals will always remain the stewards of every organization’s most vital asset: its people. My advice would be to ensure the human element remains at the heart of whatever you do in HR.