What's Happening?
A recent study by the Retail Trust and AlixPartners reveals that over half of retail workers are considered a 'flight risk' due to growing concerns over job security. The Retail People Index indicates a 19% increase in flight risk from the previous year, marking the highest percentage since the index began tracking two years ago. The survey, which included responses from over 600 employees, assessed factors such as pay, recognition, development, and work-related anxiety. The findings show a decline in overall wellbeing, with a seven-point drop year-on-year in Q2 2025. Additionally, the number of retail staff working while feeling unwell rose by 12%, reaching 44%. The Office for National Statistics reported a significant decrease in retail jobs and vacancies, further exacerbating the situation.
Why It's Important?
The increase in flight risk among retail workers highlights significant challenges within the retail sector, impacting employee morale and stability. As job security concerns rise, the sector faces potential disruptions in workforce continuity and productivity. Retail managers, who are crucial in maintaining team cohesion, report feeling under-resourced and unsupported, which could lead to higher turnover rates and decreased employee engagement. The economic pressures from rising employment costs are contributing to these challenges, affecting both managers and their teams. Addressing these issues is vital to prevent further decline in morale and ensure resilience in the retail industry.
What's Next?
To mitigate the impact of these challenges, there is an urgent need for increased support and training for retail managers. Enhancing leadership skills and providing resources to manage under-resourced teams could help improve morale and reduce turnover. Employers may need to explore strategies to bolster job security and employee wellbeing, potentially through policy reforms or financial incentives. The findings suggest that addressing these issues promptly is crucial to maintaining stability and resilience in the retail sector.
