New research reveals urgent need for workforce innovation as hiring freezes and redundancies loom
Economic Pressures Drive Workforce Strategy Rethink
New research by WorkJam, the world’s leading digital frontline workplace with customers including M&S and Co-op, reveals that UK retailers predict a workforce crisis amid current economic turbulence.
The study found that over half (53%) of retailers have already frozen recruitment due to government budget pressures, with nearly 60% expected to make redundancies within six months. Such strategies are expected to put further pressure on existing employees, with 41% anticipating continued strain on managers.
“Given the pressure many UK retailers face, it is more crucial than ever that they embrace technical innovation to make significant improvements in engagement and motivation among frontline workers as part of a strategy to ensure long-term viability.” – Mark Williams, Managing Director, EMEA, WorkJam
Retailers also revealed a significant lack of confidence in the support provided by the government: 35% view the reduced Business Rates Relief scheme negatively, believing it will have little or no impact on their ability to manage rising costs.
The Disconnect Between Recognition and Action
Despite these growing pressures, an alarming 76% of retailers admit their frontline workforce management needs improvement, yet many still lack basic tools to support staff, optimise scheduling and relieve pressure on managers.
Even more concerning is that while nearly all retailers (98%) recognise 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
- 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.
Barriers to Innovation
For organisations looking to invest in workforce management tools, corporate buy-in (31%) represents the biggest blocker. This hesitancy comes at a critical time when retail operations could benefit most from technological support.
“The retail sector stands at a pivotal crossroads where workforce management technology is no longer a luxury but a necessity for survival in challenging economic conditions.”
Without the capabilities these technologies can provide, organisations miss 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.
Editorial Commentary: The Hidden Cost of Inaction
The findings from WorkJam’s research point to a troubling disconnect in the retail sector. While leaders clearly understand the importance of employee experience, many are failing to make the necessary investments to support their frontline workers during increasingly challenging times.
This hesitancy to invest in proper workforce management tools represents a false economy. The immediate cost savings of avoiding technology investments are likely to be dwarfed by the long-term expenses associated with high staff turnover, decreased productivity, and diminished customer experience.
With economic pressures mounting and government support perceived as insufficient, retailers who fail to prioritise their workforce strategies risk entering a downward spiral of understaffing, overworked managers, and disengaged employees. The eventual cost, both financial and reputational, could be devastating.
Forward-thinking retailers will recognise that investing in their workforce isn’t merely an operational expense but a strategic advantage. By empowering employees with flexible scheduling, self-service capabilities, and proper digital tools, these organisations can build resilience against economic headwinds while simultaneously improving both employee satisfaction and customer experience.
The retail workforce crisis isn’t just looming, for many organisations, it’s already here. The question is whether retailers will take the necessary steps to weather the storm by properly equipping their most valuable asset: their people.
Research was carried out among 118 attendees of the Retail Technology Show, April 2025.