Industry Research Reveals Retailers Must Rethink Workforce Strategy to Weather Economic Pressures

LONDON, 30 APRIL 2025 – WorkJam, the world’s leading digital frontline workplace, has released new survey findings* showing that UK retailers fear a looming workforce crisis. Over half (53%) have already frozen recruitment due to government budget pressures, and nearly 60% expect to make redundancies within six months. As frontline teams face growing pressures, 76% of retailers admit their workforce management needs improvement, yet many still lack basic tools to support staff, optimise scheduling and relieve pressure on managers.

Despite nearly all retailers (98%) recognising that employee experience directly impacts customer satisfaction, many are failing to equip their frontline teams with the tools they need. Just 14% offer flexible pay options, only 22% support shift swapping and 21% provide no self-service digital workforce management tools at all. With most organisations still relying on basic workforce management systems, the gap between operational pressures and available support is widening – putting both staff wellbeing and customer experience at risk.

For those organisations looking to invest in workforce management tools, corporate buy-in (31%) is the biggest blocker. Without the capabilities these technologies can provide, organisations are missing out on smart and dynamic scheduling and self-service capabilities that allow employers to adapt shift patterns according to supply and demand. In contrast, putting employees in control of their shifts and freeing up managers’ time has an empowering and engaging effect on the workforce, increasing job satisfaction and productivity. As such, it also improves employee retention rates, saving the recruitment costs of replacing lost workers in future.

Confidence in government support is also low – 35% of retailers view the reduced Business Rates Relief scheme negatively, believing it will have little or no impact on their ability to manage rising costs. This contributes to the perception that pressure on the sector will persist, with 41% anticipating continued strain on managers and over a third (35%) predicting ongoing hiring freezes over the next six months.

“Given the pressure many UK retailers face, it is more crucial than ever that they embrace technical innovation,” said Mark Williams, Managing Director, EMEA, WorkJam. “By doing so, they can make significant improvements in engagement and motivation among frontline workers as part of a strategy to ensure long-term viability.”

Click here to download the full report.

*Research was carried out among 118 attendees of the Retail Technology Show, April 2025.