2009-2010
Learning Economics through current issues (3)
Local Retail Industry
Source 1
為提升零售業的專業形象，本地大型家具品牌-實惠家居計劃於未來半年增開五間分店
及增聘二百多名員工，並設立培訓課程，為員工提供在職培訓。
實惠家居有限公司副行政總裁梁兆邦表示，零售業一直以來的流失率較其他行業高，且
零售業從業員經常給人一種基層、不專業的印象。為此，實惠計劃於未來一年投資一千
萬元，設立內部培訓學院，為每名員工提供在職培訓。另外，亦為主任級以上人員設計
一個能銜接大學學位的零售業管理人員證書課程，保送員工上班時間內進修一年。梁於
訪問中有信心地表示，培訓有助提升員歸屬感及競爭力，令他們更願留低。
梁兆邦指，雖然失業率居高不下，但銅鑼灣、灣仔分店經常「有工無人做」，該處屬旅
遊區，每店需三十名員工，但長期有五、六個空缺，不少住九龍及新界的應徵者對跨區
到港島工作的意慾不大。為解決此問題，實惠特增設每月約四百元的交通津貼給港島分
店上班的員工，並改由分店直接張貼招聘啓示，望此問題得以改善。
資料整理自：
「港島『有工無人做』
」，星島日報，2009 年 9 月 14 日。
「好老闆培訓員工保送大學 實惠擴五分店增聘 200 人」，星島日報，2009 年 9 月 14 日。
Learning Economics through current issues/2009-2010/Local Retail Industry
Page 1 of 5
Source 2
A summary of Turnover Rates and Vacancy Rates in the First Quarter of 2009 (by business sector)
5%
4%
3%
2%
1%
0%
Wholesale,
import/export, Manufacturing
trading
Overall
Retail
Telecom
Biz/prof.
services
Turnover Rate
1.56%
3.79%
1.64%
2.54%
1.90%
Vacancy Rate
1.89%
1.86%
1.62%
2.58%
1.20%
Engineering
Financial
services/
banking/
Property dev./
community/
Transport/
real estate/ social/ personal related services
construction
services
(storage)
1.65%
0.95%
1.23%
3.09%
1.58%
1.14%
2.65%
1.16%
3.92%
4.28%
Hotel
Others
0.75%
1.80%
2.80%
0.82%
0.23%
0.72%
Remarks:
1.
The turnover rates captured in this survey are voluntary resignations. Any turnover caused by voluntary or involuntary redundancy, dismissal or
retirement is excluded.
2.
Business sector “Others” in turnover rate includes Property Management, Head Office, Medical, Oil/ Chemicals, Garment Sourcing, Direct Selling
and Entertainment.
Source: HKIHRM survey shows employee turnover at record low for first quarter of 2009 (Chart 2)
http://www.hkihrm.org/common_files/press/english/files/12865.7311201096trvrQ109_pr_e_web_v2.pdf
Source 3
A summary of Turnover Rates and Vacancy rates (First Quarter of 2003-First Quarter of 2009)
5.00%
4.50%
4.00%
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
1Q 2003 2Q 2003 3Q 2003 4Q 2003 1Q 2004 2Q 2004 3Q 2004 4Q 2004 1Q 2005 2Q 2005 3Q 2005 4Q 2005 1Q 2006 2Q 2006 3Q 2006 4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009
Turnover Rate
1.73%
2.04%
2.05%
1.82%
2.07%
2.90%
3.57%
2.37%
2.99%
2.98%
3.66%
2.33%
2.97%
3.08%
3.23%
2.66%
2.85%
4.22%
4.54%
3.08%
3.94%
4.36%
4.23%
2.00%
1.56%
Vacancy Rate
1.35%
1.29%
1.61%
1.60%
1.51%
1.83%
2.49%
1.93%
2.42%
2.95%
2.48%
2.51%
2.85%
2.79%
3.09%
2.71%
3.10%
3.51%
3.97%
3.93%
4.60%
3.90%
3.77%
2.39%
1.89%
Source: HKIHRM survey shows employee turnover at record low for first quarter of 2009 (Chart 1)
http://www.hkihrm.org/common_files/press/english/files/12865.7311201096trvrQ109_pr_e_web_v2.pdf
Learning Economics through current issues/2009-2010/Local Retail Industry
Page 2 of 5
1.
According to Source 1, how would Pricerite improve its staff professionalism?
Pricerite would
(i)
(ii)
2.
spend HK$10 million to establish an internal training institute to provide on-the-job
training to every staff.
design a curriculum which can connect with a university degree program of retail
management for its senior staff. The staff can receive training during working time
for one year.
Why are there still job vacancies in Pricerite even with a high unemployment rate in Hong
Kong? Explain your answers from economic perspective.

For the case of Pricerite, some branches in urban districts on Hong Kong Island have
vacancies due to the full cost of working cross-district (e.g. transportation cost and
time cost of travelling) is higher than the benefit (e.g. income return) of doing so for
people living far away.
3.
Do you think the travel subsidy scheme offered by Pricerite can attract more people living
in Kowloon or the New Territories to work in its branches on Hong Kong Island? Explain
with the aid of a demand-supply diagram.




Yes.
The cost of cross-district working decreases.
More people are willing to work on Hong Kong
Island, so the supply of labour will increase
(From S1 to S2)
Number of employees of Pricerite will increase
from L1 to L2
W
P
S1
0
S2
W1
W2
D
0
L1
L2
Staff in Pricerite
L
Q
0
4.
According to Source 2, which industry has the highest staff turnover rate?
Retail Industry
5.
According to Source 3, the employee turnover rate of the fourth quarter is the lowest
throughout every year over the period shown in the chart. Can you think of any reasons
behind? (For more able students, teacher can jump to Q.6)
Students’ free answers
Many enterprises offer double-pay or year-end bonus at the end of the year and this would
discourage the resignation intention of the employees. Hence, the turnover rates of the
fourth quarter are usually lower than those of the other quarters.
Learning Economics through current issues/2009-2010/Local Retail Industry
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6.
With reference to Source 3, can you figure out the pattern of the quarterly turnover rate of
the years presented in the chart? Discuss the reasons behind.
Students’ free answers
The turnover rate of the fourth quarter is the lowest throughout the year over the period
shown in the chart. It is probably because many enterprises offer double-pay or year-end
bonus at the end of the year, hence employee’s resignation intention would be discouraged.
So the employee’s turnover rate of the fourth quarter is the lowest throughout the year.
7.
Is there any relationship between employee turnover rate and Hong Kong economic
environment? Discuss with reference to Source 3.
According to the trend shown in Source 3, it seems that employee turnover rate is positively
related to the economic performance. During 2004-2006 which Hong Kong experienced a
recovery, employee turnover rate was on a rise. Until 2007-08, there was a boom in
economy, the highest turnover rate hit 4.53%. However, during 2008, financial tsunami was
wreaking havoc, Hong Kong economy got seriously hurt, the turnover rate decreased from
4.23% in the third quarter of 2008 to 1.56% in the first quarter of 2009.
8.
Visit the website of Hong Kong Institute of Human Resource Management (HKIHRM), try
to figure out which industry recorded the highest employee turnover rate between 2003 and
2009.
Retail Industry
9.
Why does the above industry have the highest employee turnover rate among the others
regardless of the economic situation? Explain your answers with economic perspective.
High occupational mobility is one of the factors causing high turnover rate in retail industry.
Workers in this sector are not required to possess much specialized skill. Thus their
opportunity cost of changing job is relatively lower than those in other industries (e.g.
engineering etc). Since the occupational mobility of the workers in retail industry is high,
its turnover rate is also higher than the others.
10. What are the adverse effects to the enterprises with high employee turnover rate?
High employee turnover rate means enterprises need to hire new workers, the operation and
training cost will then increase. Besides, the newcomers may not be able to work as efficient
and professional as the experienced workers, the productivity will then decrease.
11. Can you name some local/foreign enterprises which also have their own employee training
center?
Local examples: Café de Coral, Tao Heung Holdings Limited
Foreign examples: McDonald’s, Disneyland
Learning Economics through current issues/2009-2010/Local Retail Industry
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12. With reference to Q.11, why do the above enterprises establish their own training centers?
Students’ free answers.



Standardizing skills required
Increasing labour productivity through on-the-job training.
Increasing the employees’ sense of belonging to help reduce turnover rate.
13. Besides providing training, are there any other methods which can also increase labour
productivity?
Students’ free answers.



Providing good working environment
Providing promotion opportunities
Good management skills

Using more capital goods.
14. Do you think it is necessary for the retail industry to boost up its professionalism? Explain
from economics perspective.


Students’ free answers
Yes, I think it is necessary to boost retail industry’s professional due to the following
two reasons:

Professionalism can enhance labour productivity, thus the total output of Hong Kong
will increase.

Tourism is one of the main economic pillars in Hong Kong. If the tourism industry
increases its professionalism, more tourists will be attracted. It does not only have a
positive impact on the tourism industry, but also on the GDP of Hong Kong.
15. Apart from the training courses provided by the enterprises, can you suggest some methods
to the government to enhance the professionalism in retail industry?



Students’ free answers
Offer some diploma/bachelor degree courses in retailing
Legislate for statutory training holiday
Report:
Pick one industry from Source 2 and analyze, from economic perspective, how this industry is
affected during economic fluctuations.
(Hints: Students can focus their analysis on the period that the economy underwent dramatic
changes, e.g. SARS, financial tsunami etc.)
Remark:
For details of employee training of Pricerite, please refer to its official website.
Learning Economics through current issues/2009-2010/Local Retail Industry
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