Attracting employees in the Austrian SME retail market

Abstract

This paper explores the intricacies of talent acquisition in the Austrian retail sector, focusing on the challenges and strategies relevant to small and medium-sized enterprises (SMEs). This is set against the backdrop of a retail landscape dominated by a small number of large companies, intensifying competition for qualified employees. The research highlights the importance of sustainable recruitment and retention practices for SMEs, which are critical to maintaining a competitive advantage. The economic importance of the Austrian retail sector and the transformative impact of the pandemic on the labor market are discussed, as well as the shift towards remote working triggered by the pandemic and an increased demand for digital skills. The thesis is that the traditional retail sector has become less attractive, particularly to younger workers who are drawn to the dynamic environments offered by tech startups and global companies. There is a notable research gap on this topic. While there is extensive literature on talent management in large multinational companies, there is a lack of targeted studies on SMEs, particularly in the European Union where they make up the majority of companies. This thesis aims to fill this gap by providing insights into effective talent attraction and retention strategies tailored to the constraints and opportunities of SMEs.The methodology applied in this thesis utilizes artificial intelligence to conduct a comprehensive literature review. This approach uses tools such as Chat GPT-4 and Consensus AI Beta to identify and analyze relevant topics, ensuring an unbiased perspective and the ability to synthesize a variety of academic texts.The core of the thesis revolves around the conceptualization of employer branding, employee experience and workplace culture as key elements in creating a compelling employer proposition for SMEs. It argues that these elements, when used effectively, can significantly improve an SME's ability to attract and retain talent. Strategies such as competitive compensation, career development, effective recruitment, employee referral programs, diversity and inclusion, and generational preferences are also discussed and analyzed. The applicability for SMEs in the Austrian retail sector is also part of this discussion.In conclusion, the paper argues that SMEs should focus on cultivating a robust internal culture and promote employee-centric marketing. This strategy is a means of developing an authentic employer brand that resonates with potential employees. The paper suggests that such an inward-focused approach is likely to have a stronger and more lasting impact than strategies that focus solely on external image. The paper concludes with reflections on the limitations of the study and suggests avenues for further research. The findings and recommendations outlined in this paper provide valuable guidance for SMEs seeking to navigate the complexities of the Austrian retail labor market.