More Than Just Labor: The Vital Role of Human Resource Development in Retail

By: Reza Fahrezi

JurnalPost.com - The retail world is a sector that relies heavily on human resources. Amidst technological advancements and the increasing number of tasks handled by digital systems, the human element in retail remains crucial.

Retail employees are not merely people tasked with selling goods. In practice, they must understand products, serve customers, manage displays, handle stock, communicate with suppliers, interpret sales data, and help the company achieve its business targets.

The significant role of the trade sector is also evident in the number of workers involved. According to Statistics Indonesia (BPS) data reported by Katadata, there were approximately 147.67 million people employed in Indonesia as of February 2026. Of that number, the wholesale and retail trade sector is one of the largest fields of employment, accounting for about 17.95 percent of the total working population.

These figures show that the trade and retail sector holds a vital position in the Indonesian labor market. However, a large workforce does not necessarily mean that companies possess human resources with competencies aligned with business needs.

Consumer behavior is shifting, technology is evolving, price competition is intensifying, work systems are becoming more digital, and the number of products in circulation continues to grow. This situation means that the competencies of retail employees cannot remain stagnant for years.

The Ministry of Manpower explains that job training is an activity designed to provide, acquire, improve, and develop work competencies, productivity, discipline, attitude, and work ethics according to job requirements.

In my view, this concept is highly relevant to the current state of the retail world. It is not enough for an employee to simply know their general duties. They also need to understand how their work impacts sales, margins, customer satisfaction, operational efficiency, and the company's overall results.

I have observed this condition firsthand through my experience working in the building materials retail sector. In daily operations, each individual's capability significantly determines the outcome of the work.

A merchandiser, for example, is not just tasked with entering products into the system or ensuring items are available. They also need to analyze sales, identify fast- and slow-moving products, negotiate with suppliers, arrange displays, understand customer needs, and coordinate with the team.

From this experience, I see that companies should not view employees merely as labor to perform tasks. Employees are assets that need continuous development.

HR Development Is More Than Just Training

Human resource development is a vital part of human resource management (HRM). Its goal is to improve employee capabilities so they can perform their jobs better while preparing them to face changing organizational needs.

Hasibuan explains that human resource management relates to managing the workforce so they can work effectively and efficiently to achieve company goals.

Meanwhile, Mangkunegara explains that human resource development can be carried out through the improvement of employees' knowledge, skills, and abilities.

In practice, HR development does not always have to take the form of formal classroom training. The process can occur through daily work, coaching from supervisors, performance evaluations, mentoring, job rotation, and the assignment of new responsibilities.

For the retail world, this approach is particularly important because many skills cannot be mastered through theory alone.

The ability to handle customers, negotiate with suppliers, read sales data, arrange product displays, and make decisions when problems arise requires direct experience.

The Ministry of Manpower also provides various training programs related to the needs of the working world, ranging from digital literacy, digital marketing, and Microsoft Office to productivity and other skills.

In fact, there is digital marketing training that covers digital marketing activities for retail businesses as well as the utilization of e-commerce to support sales and service.

This shows that the competency needs of the workforce are constantly changing in line with the development of the business world.

The Retail Problem Is Not Just Finding People, but Developing Them

One tendency that I believe still occurs frequently is that companies are too quick to look for new employees when they need specific skills.

In reality, the company may already have employees who understand the work culture, products, customers, systems, and business processes.

If there is a skill gap, looking for new people is not the only option. Companies can first determine whether those competencies can be developed from existing employees.

In my work in the building materials retail sector, I have seen that a team can consist of people with different abilities.

Some are strong in communicating with suppliers. Others are better at reading sales data. Some are very meticulous in administration. Others excel when handling field work.

Such differences should not always be considered a deficiency. In fact, one of the tasks of management is to identify each employee's strengths, then place and develop them according to job requirements.

The same applies to a supervisor. In my opinion, it is not enough for a supervisor to simply give targets to their subordinates. They also need to provide guidance on how those targets can be achieved.

When the sales target for a product category is not met, for example, the cause is not necessarily that the employee is not working well.

It could be that product knowledge is still lacking, the display is unattractive, stock is empty, prices are less competitive, promotions are not running, or coordination between the store, merchandiser, buyer, and supplier is not optimal.

If all these problems are immediately blamed on individual failure, the company risks making the wrong decisions.

Conversely, through proper evaluation, the company can find the root cause and determine the type of development needed.

This is where human resource management becomes important in the retail world. HRM should be able to see the relationship between people, work processes, and business results.

Digital Competencies Are Increasingly Needed

Technological changes make the competency needs of employees increasingly complex. The working world no longer only requires technical skills according to the job description, but also the ability to utilize technology and read data.

The BPSDM Komdigi (Human Resources Development Agency of the Ministry of Communication and Digital) in its 2025–2029 Strategic Plan notes a gap between the availability and the need for digital talent in Indonesia.

The document states that the availability of digital talent in Indonesia in 2024 is estimated at around 6.5 million people, while the need reaches approximately 10.7 million. BPSDM Komdigi also notes a mismatch mismatch between the skills of the workforce and industry needs.

In my opinion, this condition is also very relevant to the retail world.

Currently, almost all retail activities generate data. Sales, stock, margins, purchases, promotions, and product performance can be analyzed and used as a basis for decision-making.

Therefore, retail employees need to have basic skills in reading and processing data.

A merchandiser, for example, should not stop at the conclusion that the sales of a product have declined. They need to find out the cause.

Is the stock empty? Is the price too high compared to competitors? Is the product less visible in the display area? Is the promotion not running? Or is the demand for the product actually declining?

With the ability to read data, decisions can be made based on more measurable information, rather than just guesswork.

However, technological development does not mean that communication skills become unimportant.

Retail remains a business that involves human interaction. Employees must communicate with customers, suppliers, supervisors, and team members.

Therefore, HR development in the retail sector needs to combine three main elements: technical skills, digital skills, and communication skills.

Supervisors Must Participate in Developing Employees

HR development should not be considered solely the responsibility of the Human Resources Development (HRD) department.

Direct supervisors have a major role because they are the ones who most frequently observe the work and development of employees on a daily basis.

A manager should not only provide instructions or targets but also act as a mentor for their team members.

When a Junior Merchandiser is not yet able to read sales data, for example, the manager can show how that data is analyzed.

When a Buyer is still having difficulty negotiating with suppliers, the supervisor can provide guidance or mentoring.

Likewise, when an Admin repeatedly makes mistakes in administrative work, the solution should not stop at a reprimand, but also include an evaluation of work procedures and the provision of clearer guidance.

In my opinion, this approach is far more effective than just reprimanding someone every time a mistake occurs.

Development can also be carried out through the gradual assignment of responsibilities. Employees who have mastered basic tasks can be given work with a higher level of complexity.

Through this method, the company can see potential while preparing employees for greater responsibilities.

I have observed that employees who are given the opportunity to develop usually have a stronger sense of responsibility toward their work.

Conversely, if someone is constantly doing the same work without room to learn and grow, their skills have the potential to stagnate.

What Should Companies Do?

There are several steps that I believe retail companies can implement to strengthen human resource development.

First, companies need to create a competency map for employees. Management needs to know everyone's abilities, both in terms of technical skills and soft skills. From this mapping, it can be determined who needs development and who has the ability to become a mentor for other team members.

Second, training must be tailored to job needs. Training does not always have to be general. In the retail business, material can include product knowledge, customer service, communication techniques, supplier negotiation, stock management, sales analysis, system usage, digital marketing, and administration.

Third, companies need to strengthen a culture of coaching from supervisors. Evaluations can be conducted periodically through brief discussions regarding targets, work obstacles, mistakes, and solutions. Such evaluations will be more beneficial if the goal is not just to find faults.

Fourth, companies need to provide opportunities for rotation and career development. Employees with potential can be introduced to other work related to their field. This method helps them understand the business process more broadly.

Fifth, employee evaluations should use clear data. Assessment should not be based solely on the subjective impression of a supervisor. Achievement of targets, productivity, accuracy, service quality, teamwork, and other work indicators can serve as the basis for evaluation.

Sixth, HR development must keep pace with technological developments. Companies need to ensure that the digital skills provided are truly relevant to the work, not just following training trends.

Employees Are a Long-Term Investment

The success of a retail company is not determined solely by product prices, store location, quantity of goods, or the scale of promotions.

Humans remain one of the main factors that determine how all those resources are managed.

Employees who understand their work, know the products, can read data, communicate well, and have a desire to continue developing will contribute far more to the company.

Therefore, HR development should not be viewed merely as a cost. Human resource development is a long-term investment.

Companies should not wait until they need specific skills to look for new labor. At the same time, companies need to build the capabilities of the people already working within the organization so they can keep up with business changes.

In the building materials retail world, this process can even start with simple things: providing clear guidance, evaluating work routinely, improving product knowledge, teaching how to read data, improving communication, and giving employees the opportunity to take on greater responsibilities.

Technology can indeed make work faster and more efficient. However, humans remain the ones who use the technology, control the processes, read situations, communicate, and make decisions.

The more a business grows, the more important it is for the company to pay attention to the development of its human resources.

Ultimately, employees are not just people who come to perform tasks every day. They are part of the company's process in sustaining the business, facing change, and achieving better results.

Sources

1. Ministry of Manpower of the Republic of Indonesia. (2025). What Is Job Training?

2. Ministry of Manpower of the Republic of Indonesia. (2026). Strengthening the Employment Ecosystem, Kemnaker Signs MoU with Wadhwani and Indosat, May 5, 2026.

3. BPSDM Komdigi. (2026). BPSDM Komdigi Strategic Plan 2025–2029. Ministry of Communication and Digital of the Republic of Indonesia.

4. Katadata. (2026). Majority of Indonesian Citizens Work as Laborers in Early 2026, May 7, 2026.

5. BPSDM Komdigi. (2026). Early Year Coordination, Meutya Asks BPSDM Komdigi to Accelerate 2026 Programs and Strengthen Cross-Unit Collaboration, January 14, 2026.

Bibliography

Hasibuan, M. S. P. (2016). Human Resource Management (Revised Edition). Jakarta: Bumi Aksara.

Mangkunegara, A. A. A. P. (2017). Company Human Resource Management. Bandung: PT Remaja Rosdakarya.

Handoko, T. H. (2014). Personnel and Human Resource Management (2nd Edition). Yogyakarta: BPFE.

Ministry of Manpower of the Republic of Indonesia. (2025). What Is Job Training? Jakarta: Ministry of Manpower of the Republic of Indonesia.

Ministry of Communication and Digital of the Republic of Indonesia. (2026). BPSDM Komdigi Strategic Plan 2025–2029. Jakarta: BPSDM Komdigi.