Attracting, Developing and Retaining Talent
Retailers continue to navigate an increasingly tight labour market, challenged by ongoing skills shortages, waning interest in traditional retail roles and rising expectations around flexibility and pay. Today’s workforce is seeking more varied working patterns and roles with greater purpose. Many potential candidates are opting out of retail altogether in favour of better hours, stability or clearer progression pathways.
To overcome the shortage of candidates and reduce turnover, retailers should prioritise engagement, retention and career development. High-quality employer branding, better workplace culture, and investment in wellbeing have become essential, particularly as wellbeing is emerging as a core retention factor.
Retailers should also consider how to offer more flexible schedules and work arrangements, reflecting a widespread demand for autonomy over hours and locations. This shift is especially strong among younger workers.
Melanie Stancliffe
Partner
Technology as a catalyst for productivity and new skills
At the same time, rising wage costs and economic uncertainty are putting pressure on retailers to increase productivity while controlling labour spend. Technologies such as self checkout, robotic stock management, warehouse automation and AI powered chatbots are helping retailers bridge labour gaps and streamline operations. These innovations reduce the need for certain traditional roles while creating new opportunities in digital retail skills, data analysis, machine learning and customer-facing brand advisory positions. As demand for in store experiences remains strong, retailers are enhancing stores with immersive, AI enabled experiences supported by human experts who provide personalised service and product guidance.
Despite technology’s expanding role, people remain central to retail success. The retailers that will thrive in 2026 are retailers that adopt a forward-thinking approach, embracing innovation while prioritising people strategies that foster a rewarding and engaging workplace.
Employment rights act quick summary
The Employment Rights Act 2025/2026 introduces major reforms that will significantly reshape employer responsibilities from 2026 onwards.
From April 2026, changes include the removal of SSP waiting days, day one rights to paternity and parental leave, easier union recognition, stricter and more costly redundancy consultation requirements, and tighter rules around changing terms and conditions.
From October 2026, tribunal time limits will double to six months, employers will face broader liability for sexual harassment—including third party harassment—and forthcoming limits on “fire and rehire” are expected to reduce contractual flexibility alongside new obligations around shift change notice and compensation.
Looking ahead to 2027, further reforms include unfair dismissal rights after six months, expanded collective consultation triggers, new requirements for zero hours workers to be offered permanent hours, stronger protections around flexible working, day one bereavement leave, automatic unfair dismissal protection during and after pregnancy and maternity leave, and tighter rules limiting NDAs in harassment and discrimination cases.
Businesses are advised to prepare now by updating contracts and HR policies, strengthening industrial relations, improving recruitment and performance management, assessing harassment risks, ensuring accurate statutory payments, planning for greater tribunal exposure, and allowing longer lead times for workforce changes.
To jump to our Employment Law updates, including more information on the latest on the Employment Rights Act, click here.
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Melanie Stancliffe
Partner
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