Retailers prioritise cost control over staff experience

WorkJam has published research suggesting retailers are putting cost control ahead of employee experience, marking a broader shift in workforce strategy across the sector.

Its poll of more than 150 retail professionals found that 37% now prioritise cost control over employee retention and experience, while only 5% said employee experience remains the priority.

The findings reflect the strain on retailers as higher labour costs and wider operational pressures weigh on decision-making. Employers are adjusting staffing and pricing in response to changes including higher National Insurance contributions and increases to the National Minimum Wage.

Almost half of respondents, 44%, said they are reducing or slowing hiring. A further 29% said they are raising prices.

The research also suggests many retailers still rely on basic or outdated workforce systems. Some 31% said their organisation uses basic workforce management tools, while 26% still depend on manual or outdated processes or have no formal process at all.

This points to slow progress in digitising frontline operations at a time when businesses are under pressure to simplify processes and contain costs. It also comes as retailers face new compliance demands, with only 25% saying they are making changes in response to the Employment Rights Bill.

AI adoption

Use of artificial intelligence in workforce operations appears to be spreading, but deployment remains limited. While 74% of respondents said their organisation is using AI in workforce operations, only 13% said it has been deployed at scale.

Just 20% of retailers described their AI maturity for workforce optimisation as advanced or mature. More than half, 56%, said efficiency and productivity were the main reasons for investing in AI for workforce management, while only 15% cited improving employee experience.

The data suggests the sector is still in the early stages of applying AI to staffing, scheduling and related processes. It also indicates that retailers are treating the technology primarily as a cost and efficiency tool rather than a way to address retention or engagement.

Alongside this, 66% of respondents said workforce pressures are forcing their organisations to rethink operating models. That underlines how labour costs and staffing constraints are driving broader changes in store operations and management structures.

Mark Williams, Managing Director EMEA at WorkJam, said the retreat from employee experience could carry longer-term consequences for retailers already dealing with disruption on the shop floor.

He said: “This is one of the sharpest and most risky strategic reversals we have seen in the sector in recent years. The pressure retailers are facing is real, but deprioritising employee experience is a short-term reaction that will negatively compound over time. The challenge for retailers is finding ways to reduce costs and simplify operations without losing focus on frontline engagement. With the right platform strategy, retailers can consolidate their tech stack while also improving the employee experience.”

His comments reflect a wider debate in retail over whether employers can cut spending without worsening staff turnover, engagement and day-to-day execution in stores. Frontline teams remain central to customer service, stock handling and in-store compliance, making workforce decisions especially sensitive during periods of cost pressure.

Operational strain

The survey points to a gap between the pressures retailers say they face and the systems many have in place to manage them. Employers may be looking for savings, but the results suggest many are doing so with fragmented tools and limited automation.

Williams said retailers should treat staff experience and operational efficiency as connected issues rather than separate goals. A more joined-up approach to scheduling, communication, task management and learning, he argued, could help reduce complexity.

He said: “Frontline operations platforms are becoming increasingly important as retailers look to simplify operations without creating additional friction for employees. By bringing together scheduling, communication, task management and learning into a single platform, retailers can reduce the complexity and costs associated with fragmented systems, while also creating a more connected and engaging experience for frontline teams. The retailers that will be most successful are those recognising that operational efficiency and employee experience are closely linked, not competing priorities.”