How the retail sector can tackle high staff turnover
Updated 12th February 2025 | 5 min read Published 23rd January 2025
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The staff turnover rate is notoriously high in the retail industry, particularly in entry-level positions, with many stores facing a constant challenge to continuously replace staff who have resigned.
At the moment, the situation shows no sign of improving, with a report from the Retail Trust finding that a significant number of retail workers are planning to leave the industry.
Why is staff turnover so high in the retail industry?
Many factors contribute to the high employee turnover rate, including:
- Low wages
- Long hours
- Lack of job security
- Limited opportunities
- Customer abuse
- Post-pandemic fatigue
Due to the seemingly never-ending hiring cycle, a constant monetary and time burden is placed on retailers to find new staff.
For example: research found that an employee earning the average UK salary of £31,722 could end up costing their employer £62,892, once factors such as recruitment, training, National Insurance and pensions, are accounted for.
The cost of living is impacting everyone, and retailers can't magic up more money to entice staff, so what can be done to improve job satisfaction and hold on to your valuable team members for longer?
1) Better understand your people
A more enjoyable work environment is sure to better retain staff.
However, to do this, you need to understand what your people want and how they are feeling.
Encourage open communication and feedback through regular check-ins with staff, offering an opportunity to better understand how each staff member is feeling.
Do note that not everyone will be comfortable sharing in a face-to-face setting.
A less direct method to gather feedback is to run staff surveys.
While a survey may not offer insight into individual issues, it provides an overview of overall sentiment, enabling you to make quick, meaningful changes.
2) Show people a clearer future
Another step you can take is to invest in staff learning and development (L&D).
According to research, two in five workers in the UK are planning to leave their jobs within a year due to a lack of career prospects.
Offering training that covers all aspects of the retail business, from customer service and product knowledge to sales techniques and people management, can be hugely meaningful to staff.
Typically, people who feel better equipped to excel in their roles are generally more satisfied.
Additionally, if staff see a future with you, they're much more likely to stay; if you are looking for more senior roles like managers and team leaders, consider promoting from within.
3) Celebrate your staff
Celebrating wins and achievements goes a long way in making staff feel valued.
Consider running initiatives such as employee-of-the-month programs or offering incentives for meeting sales goals.
Adding these extras helps build an exciting environment and makes employees feel appreciated.
Also, don’t underestimate the power of a simple “thank you for doing a great job” as these small gestures can make an enormous difference and help brighten someone's day.
Putting people first
Ultimately, the secret to improving staff retention is creating an environment where people want to actually work.
Hopefully, the above offers some guidance, enabling you to improve your workplace.
If you're looking for further guidance, we have more assistance on hand to support you!
Check out our recent guide which covers the above in more detail, as well as tackling other common HR challenges the retail industry is facing.