Best practice when hiring staff in the luxury retail space

It is widely known that luxury brands maintain their retail stores to deliver a personalised shopping experience that can’t be replicated online. The high level of customer service that is expected in stores can sometimes create difficulty for prestigious brands to attract and retain good quality candidates. Consumer expectations continue to evolve, and so do the requirements for talent in this industry. Hiring the best candidates with minimum legal risk is vital. In this article, we explore some of the legal risks that are associated with the recruitment process and look at the steps that retailers can take to avoid them.

Discrimination risks

Many organisations fail to realise that a job applicant can file a claim for discrimination in the Employment Tribunal against a prospective employer at any point during the recruitment process.

There are nine protected characteristics listed in the Equality Act 2010 (EqA 2010), that prohibit prospective employers from discriminating against job applicants as follows:

• Age
• Disability
• Race
• Gender reassignment
• Marriage and civil partnership
• Pregnancy and maternity
• Religion or belief
• Sex
• Sexual orientation

It is vital that retailers avoid treating any candidates less favourably because of one or more of these protected characteristics than they treat or would treat another candidate who does not have the same protected characteristic. For example, it would be unlawful for a prospective employer not to invite a candidate to a second interview simply because they were over fifty years old, because they walked with a walking stick or because they were pregnant. In addition, if a prospective employer is aware that an applicant has a disability then they should consider making “reasonable adjustments” to the recruitment process so as to avoid that applicant suffering any substantial disadvantage.

For example, if an applicant indicates that they suffer from severe dyslexia or dyspraxia and, as such, would find the process of completing an online application form extremely difficult, then a prospective employer should consider allowing that individual to make an oral application instead. A luxury retailer may have a defence to a discrimination claim where it can demonstrate that having, or not having, a particular protected characteristic is a “a genuine occupational requirement” for the role, however this will not be the case for the majority of retail roles.

Before hiring

Having a written recruitment policy in place which sets out the organisation’s commitment to comply with discrimination laws is the first step retailers should consider. Once a compliant policy is in place, we recommend that specific training is given to those employees who will be involved in the recruitment process which focusses on the businesses’ equality responsibilities. This will assist luxury retailers to comply with legislation, to help limit the scope for discriminatory practice as well as maintaining a consistent approach to recruitment.

Job specification and advertising

The EqA 2010 states that an employer must not discriminate in its arrangements for advertising jobs or through the actual content of the advertisement. Care should be taken when drafting a job specification and job advert. A job specification should set out genuine requirements for a role and avoid using wording which could be deemed discriminatory. In the fast-paced world of luxury retail, it is important for brands to have streamlined job descriptions which focus on the skills and experience requirements and their objective approach to filling the role.

Inappropriate wording in job adverts could give rise to the risk of discrimination claims or be used as evidence of a discriminatory culture. Luxury retail is synonymous with a high level of service, sophisticated product knowledge, and an unwavering commitment to customer satisfaction but employers need to ensure that wording in adverts avoids giving rise to any suggestion that people with certain protected characteristics would not be suitable for the role.

In addition, employers should be aware of the risks of searching for applicants on social media, given that information relating to a protected characteristic may well be identified on an applicant’s profile. If such information is subsequently used to make recruitment decisions, this may well amount to discrimination.

We recommend advertising a job role both internally and externally. By doing this, retailers can reach a broad spectrum of potential applicants by using a mix of advertising channels. Using multiple forms of advertisement is likely to attract more of the people who are interested in the retailer’s brand, share its values and also appeal to a wider talent pool. It is important to ensure that the same selection procedures and criteria are applied to both internal and external applicants.

Interview process

Employers should try to be flexible about arrangements made for interviews and should consider in advance where they are to take place and if, for example, they are able to take place remotely. We recommend that candidates are informed of what to expect and that reasonable adjustments are offered for disabled applicants. It is advisable for interviews to be conducted by more than one person. This reduces the risk that a decision has been made based on one person’s subjective view of the applicant. This should remain the case even when an interview takes place virtually.

Conducting interviews strictly on the basis of any job description and agreed selection criteria will help an employer to ensure that all applicants are assessed objectively and solely on their ability to do the job. To assist with this, it is recommended that prior to the interview a set of questions are prepared for each applicant. The interviewers should apply an objective scoring system, limiting scope for bias and discrimination.

During these interviews, questions asked can be about real-life situations in luxury retail, such as how they would deal with difficult customers or how they have hit their targets in previous roles. How the interviewee answers these questions gives a good idea of their problem-solving skills, how well they communicate, and if they’ll adapt to the culture of the workplace.

It is also essential that legible notes of a candidates’ answers to the questions asked at interview are retained and that the interview includes a written summary of the interviewer’s opinion/overall impression of the candidate in case these are ever needed as supporting evidence in an employer’s defence to a discrimination claim.

Making an offer

Once the interviews are complete and an employer has identified their ideal candidate, they will need to write to the candidate to make an offer of employment. This is not just an opportunity to talk about the salary for the role but also the potential benefits, work culture and growth opportunities that are linked to the role. Presenting an honest view, at an early stage, of what their employment will look like is essential.

The offer must be sufficiently clear to enable the candidate to accept it. It should address the job title, starting salary, location, and any conditions to which the offer is subject and any timescale within which conditions need to be satisfied.

It is also good practice to offer feedback to unsuccessful shortlisted candidates. This demonstrates respect and professionalism, which are crucial aspects of maintaining an organisations’ reputation. Feedback should focus on areas they could improve in future situations rather than their shortcomings. This approach will motivate candidates to strive for growth and potentially become suitable candidates for future roles.

Conclusion

Streamlining recruitment processes will enable retailers to make thoughtful decisions by considering candidates who align with their culture and values. In addition to legal risks, there may be other ramifications of discriminatory practices in recruitment, such as grievances from other employees, adverse publicity and reputational harm. It is imperative for luxury retailers to adapt and implement effective recruitment strategies to secure the best talent for sustained growth and excellence in customer experience.

How we can help

If you need assistance in updating your recruitment policy or advice in relation to a recruitment process, please contact our employment team.