Retail surgery: What are the effects of cutting out middle management?

Retailers have been under pressure to make staff cuts throughout the recession and the removal of the middle level of management has been a particularly popular strategy.

These managers are traditionally the role models to junior teams and junior management, leaving a gap that has not been completely filled.

The removal of this tier can be necessary to ensure future prosperity of a business, but it has had an impact on the sector in the short term.

Diane Coolican, managing director at Redsky Learning, says it often leads to junior managers having greater responsibility and stepping up to fill the gap of the middle managers.

She says this can be problematic because they might not have the leadership skills of their predecessors or a role model immediately above them to learn from.

She adds: “We have still seen a high staff turnover in retail despite the recession. This suggests the absence of a role model.

“Many junior managers do not realise that they are now role models to junior members of their teams and responsible for motivating their teams.”

Although cutting management is often a necessary short-term measure for the industry to remain on its feet, Coolican says retailers should look at how they can revive the development of the role models.

Coaching junior managers to ensure they believe they are role models is important, and it is also a good idea to run workshops on effective people management. Communicating with senior members of staff and planning properly are other skills that often need improving.

Finally, Coolican says, track the progress of these managers, so they can see their own development and think of themselves as role models.