The retail workforce is the biggest employment sector in the world, employing millions of people across retail storefronts, warehouses, and corporate offices. While retail employees smile, ship, sell, and ring up transactions, their HR teams are creating strategies to address retention challenges and overcome a wide host of workforce challenges that all impact employee engagement, business outcomes, and profitability as well. 

While consumer expectations continue to rise and the world’s workplace continues to change, retail employers must prepare to adapt to new hiring practices, new ways of retaining employees, and new technologies that transform workforce management.

Thus, all the above workforce challenges can be mitigated or prevented entirely, and if retail companies focus on these initiatives, they will also build employee engagement and be prepared for the future. 

Let’s take a closer look at the most difficult workforce and HR challenges retail employers face and how they can be addressed.

1. High Employee Turnover/Retention Challenges 

A requirement put on retail employers that may be one of their largest compliance concerns is related to the employment and retention of staff. As we know, retail positions have some of the highest levels of employee turnover compared to other industries, whether for seasonal components of staffing, wage and compensation issues, or career growth prospects, to name a few factors. 

Why Is Turnover So High in Retail?

• Irregular scheduling 

Many employees work an inconsistent schedule, limiting their long-term job security. 

• Limited career advancement 

Many entry-level jobs do not provide a clear path for future job advancement, which leads to disengagement. 

• Burnout 

Retail is a high-pressure environment, particularly during the busy season. Many employees become mentally and physically exhausted. 

• Better jobs elsewhere 

Employees move on from retail jobs frequently for work opportunities in other industries that provide more pay and better benefits.  

Strategic Responses to Retention 

• Provide Competitive Compensation and Benefits 

Raising hourly wages, offering incentive programs, and providing wellness programs are ways employees can continue working at an organization. 

• Provide Career Advancement Opportunities 

Investing in employee training, job promotions, and leadership development will likely lead to sustained employment with the organization. 

• Increase Flexibility 

Providing options for customizable shifts improves employee satisfaction and reduces turnover.

• Support Employee Well-being 

Addressing mental health needs, helping to ensure equitable job responsibilities, and paying attention to the importance of recognition are ways to improve employees’ engagement in their jobs. 

Organizations that work to build a more stable workforce using better compensation and benefits, along with career paths, can experience significantly reduced turnover rates. 

2. Shift Work and Scheduling Conflicts

Retail does not adhere to standard schedules. Team members often work shifts that require evenings, weekends, or peak seasons. The job of human resources managers (HRMs) encompasses managing employee schedules, addressing needs and availability without compromising the needs of the business, and staying compliant with local, regional, and national scheduling laws. 

Common Scheduling Issues in Retail 

• Last-minute cancelled shifts 

Business is left short-staffed, resulting in a lack of productivity.  

• Forcing employees to work excessive shifts 

Employees become equally fatigued, resulting in reduced performance. 

• Lack of stable staffing availability 

Employees may want to change their shifts regularly, causing confusion in work schedules. 

Maximizing Scheduling Using Workforce Tools 

• Scheduling Platforms 

Automated retail staff scheduling software and some other tools can assign work shifts based on availability and demand.

• Self-Serve Shift Ownership 

Employees can manage shift changes, swaps, and requests online, taking the burden away from HR so HR can focus on higher value activities.

• Demand Management

Provides a prediction of staff during busy times to avoid being short-staffed.

• Compliance Tracking

Easily check compliance with labour laws and workplace regulations as they relate to fair scheduling.

Now, with modern workforce management capabilities, scheduling errors are significantly reduced, and organizations can keep their trains running while making reasonable accommodations for employee needs.

3. The Problem with Employee Training & Upskilling

Retail is fast-paced, and employees must continually evolve using knowledge, developing customer service traits, and evolving the business’s operational practices. Unfortunately, with a limited training budget and antiquated training strategies, employees remain underequipped within their roles.

Why Employee Training in Retail Struggles? 

• Lack of structured learning programs 

New employees experience some training but lack a structured onboarding plan that guides their roles and deliverables. This could negatively impact the employee’s performance and confidence.   

• Turnover negatively affects long-term skills & assets 

Disruption from continuously departing employees makes ongoing education and training complex and inconsistent. 

• Tech is forefront, unrealistic 

Employees can be successful with tracking and reporting by utilizing retail management software and hardware.

How to Improve Training & Upskilling 

• Digital Learning Platforms 

Online courses and video-based tutorials have made training flexible and accessible. 

• On-the-Job Coaching programs 

Structured mentorship enhances learning experiences. 

• Gamified Training Modules 

Online exercises enhance engagement and knowledge retention. 

• Technology Workshops 

Staff have regular learning sessions to utilize new retail software efficiently. 

Employers can ensure employees remain effective, engaged, and adaptable in the constantly changing retail environment by investing in new, up-to-date methods of employee training. 

4. Workplace Culture and Employee Well-Being

Retail workplace environments can have significant levels of pressure, which can leave employees susceptible to mental fatigue, stress, and burnout. Employees are typically required to work in a fast-paced environment with increased workload and expectations, which affect their morale and job satisfaction. 

Elements Contributing to Workplace Well-Being in Retail 

• High levels employees workload in busy seasons – Holiday rushes mean the most for employees.  
• Lack of recognition for work – Employees feel undervalued.  
• High interaction with stressful customers – It is damaging to mental health. 

Building a Positive Workplace Culture 

• Initiatives for Employee Recognition 

Recognize accomplishments! Recognize dedication!  

• Initiatives for Work Life Balance 

Protect against burnout with reasonable scheduling policies!  

• Mental Health Initiatives 

Offer Employee Assistance Programs and stress reduction workshops!  

• Initiatives for Team Experiential Engagement 

Develop workplace relationships with informal Employee Engagement activities. 

Your retail operation can impact retention and customer satisfaction when employee well-being is a priority! 

5. Diversity & Inclusion 

While the retail sector is serving a diverse customer base, the retail community is struggling to create inclusive workplaces. Unconscious bias, uneven hiring practices and a lack of reflection in the workforce all contribute to workplace culture and employee satisfaction. 

The challenges Retailers face in Diversity and Inclusion 

• Lack of balance in the representation of leaders 

Don’t differentiate: link between those who make decisions and those being recruited.  

• Discriminatory hiring practices 

Despite a commitment to diversity, the hiring process is influenced by implicit bias.  

• Workplace discrimination issues

The inability to act upon issues of inequity creates workplace culture issues. 

Solutions for a More Inclusive Retail Workforce

• Bias-Free Hiring 

Using AI to source workforce recruitment tools will remove discrimination.

• Diversity Training for Managers 

Ensure that your HR teams are trained on inclusive principles.

• Workshop on Cultural Awareness 

To build knowledge and understanding with your workforce across all backgrounds.

• Equity-Focused Career Development Programs 

Ensure all employees have access to career opportunities.

Retail businesses with diversity have new ideas, higher employee morale, and better experiences with their customers.

Final Thoughts

Retail HR is harder than recruiting and assigning schedules. When factoring in turnover (raising cash), training deficiencies (knowledge lost), employee scheduling (forces outside our control), employee culture (team dynamics), and diversity (makes us stronger), we have a lot to consider moving forward.

Retail can evolve and transform with investments in innovative workforce solutions, improving workflow, employee experience, and evolving HR management support systems.