First published on Monday, December 8, 2025
Last updated on Monday, December 8, 2025
According to Government statistics, there are over 300,000 retail businesses in the UK. And while this includes some of the largest market shareholders, this figure also accounts for some of the smallest in the country. From your local pet shops to the off licenses on street corners. And in the 21st century this figure also accounts for online retailers too!
Having said that, it is also a sector under increasing pressure. Small retailers in the last 12 months have suffered considerably due to rising costs and red tape employment laws. As the industry faces further complications under new employment laws and budget pressures, it is no surprise this sector often faces HR headaches.
Let's delve in as we uncover the HR challneges faced by retail business owners and how HR software can support teams.
What are the HR challenges faced by retail businesses?
Recruitment, onboarding and staff retention
The retail industry hires over 2 million people in the UK with some of the highest rates of staff turnover. It is a sector that often has to battle with more complicated recruitment than most. From:
Dealing with a hoard of job applications
Onboarding more than one new starter at a time
Training staff on systems unfamiliar to them
Handling updates to employment contracts
It can be hard for retrial business owners and managers to keep on top of recruitment whilst also managing the day-to-day operations.
Employee scheduling
Once onboarding is done and a team is ready to go, the challenges don’t stop there. Most retail businesses operate on long working days. Often staying open 6 or 7 days a week with staff rotating shifts to cover different working patterns.
However, with the demand from consumers for long opening hours, scheduling employees to ensure the store is manned and fully staffed can be challenge. Particularly when you must consider staff annual leave, sickness, health and safety and compliance with the Working Time Regulations.
Employee wellbeing and handling high staff turnover
Retail shops can be high pressure environments. Particularly during peak periods such as Christmas, Black Friday, and other seasonal holidays such as Valentine’s Day and Mother’s Day. Staff can quickly become overwhelmed, overworked and tired of their day-to-day responsibilities. Because of this pressure, and often the low pay that comes with retail work, the industry experiences higher rates of employee turnover than most.
To mitigate this, employee wellbeing should be a priority for employers. However, it is often difficult to implement processes when other business operations come first.
Handling HR documentation and compliance with employment laws
Due to high turnover, retailers are more likely to hire temporary workers. Using this as a stopgap for staff shortages. However, with this comes a pile of paperwork.
From CVs to employment contracts to dealing with agency workers. The HR admin soon builds up. Handling HR documentation and employee data with care is not only an admin issue but a legal one too. One small error and businesses can quickly find themselves dealing with the ICO for breaches of the Data Protection Act.
Ways to enhance HR processes in the retail industry
With all the tasks that come with running a small business, it’s no surprise business owners in the retail sector have limited time to address HR processes. However, with some small changes, it can be simplified:
Smart employee scheduling software
By moderninsing you approach to rota planning with shift and rota software you can rid your business of piles of paperwork and organise staff rotas in a matter of minutes. With a tool like BrightHR, it’s simple:
Remove the risk of shift conflicts
Fill open shifts in an instant with instant alerts
Complete rota planning in just a few clicks for the week or month ahead
Keep shop floors fully staffed at all times to ensure the best customer experience and compliance with health and safety rules
Implement an efficient onboarding process
Your approach to onboarding can make all the difference in supporting a new hire to settle into their role. In retail, a fast-paced and often overwhelming environment for new starters, onboarding should be seamless. Ensuring that those new to their positions are trained across all systems and processes and have been introduced to their colleagues.
For retailers it’s not just about keeping your staff happy, you also must consider your customers. And for staff in customer-facing sales roles, early training helps to set the bar for exceptional customer service.
Utilise recruitment tooling to secure top talent
According to data from UK Money, the retail sector has a higher average turnover than most of 33.6%. With this high turnover rate, and the sectors number of employees dropping year-on-year, it’s not surprise that recruitment is one of the biggest HR headaches for UK retailers. However, with smart recrtuiment tools, this process can be automated. Helping businesses save time and money.
Business owners just like you can tackle recruitment head-on with a tool like BrightHR’s Turbo Talent Navigator you can:
Stay on top of applications in a single online platform
Write job descriptions with AI assistance to target specific audiences
Build a secure database of job applications and CVs you can dip in and out of
Can AI tools support retail businesses to streamline HR?
At BrightHR we are developing our HR tools with the use of AI automation. Making our products and features work even harder for our customers.
With AI integrated into our HR software you can:
Write perfectly curated job listings
Reduce HR headaches with instant answers to your employment law queries
Set performance goals and objectives in a flash for retail staff
With AI automation built directly into the software, UK retailers can now save even more time. Overcoming common HR challenges and enhancing their employee engagement and wellbeing.
To discover HR software built for small businesses like yours, book a free demo with BrightHR today.
