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Navigating the Retail Labor Crisis: 7 Strategies for Overcoming Staffing Challenges

By Shekel

June 30, 2023

7 min read

The coronavirus may no longer dominate the headlines, but its impact has reverberated across all aspects of life, including the retail industry. 

This enduring influence, coupled with shifting demographics, evolving job preferences, and the rapid rise of e-commerce, has led to a retail labor crisis that doesn't seem to be going away anytime soon. In fact, there are currently 5.5 million more job openings than there are workers to fill them. Despite a 14% increase in retail-based pay since the beginning of the pandemic, it frequently remains insufficient to attract job seekers to apply for positions.

It's clear that retailers no longer have the luxury of effortlessly recruiting additional workers to manage increased business demands. And as a result, those ill-prepared now face overwhelming workloads, burdensome responsibilities, and chronic understaffing, all of which pose significant challenges and are prompting changes in their business models. 

The Impact of the Retail Shortage Crisis on Retail Businesses

The retail shortage crisis has unleashed a range of detrimental impacts on retail businesses across various aspects of their operations. Firstly, with understaffing becoming a prevalent issue, retail businesses often find themselves unable to adequately monitor and address security concerns such as theft, fraud, and customer safety. This can result in increased losses and compromised store environments. 

Secondly, the shortage of staff puts a strain on profitability, as businesses may struggle to meet customer demands efficiently. The lack of staff can lead to longer wait times, decreased responsiveness, and diminished overall customer experience leading to missed sales opportunities and reduced revenue. Additionally, the shortage can hinder growth opportunities for businesses, as they may be unable to expand or open new locations due to staffing limitations.

Finally, the burden placed on existing employees due to increased workloads can lead to employee burnout, impacting morale, productivity, and employee retention. 

So, what can be done to combat this? 

Strategies for Overcoming Staffing Shortages

As the retail staffing shortage persists, retailers are compelled to reevaluate their business models, devise fresh operational strategies, and embrace innovative solutions to mitigate the repercussions of having a reduced workforce. 

  1. Competitive Compensation and Benefits Packages

Offering competitive compensation and benefits is crucial in attracting and retaining talented retail staff. Statistics reveal that companies with above-average wages experience 41% less turnover among hourly store employees. Moreover, a study found that 79% of job seekers consider compensation the most important factor when choosing an employer. Retailers must analyze market trends to ensure their salary structures align with industry standards. Additionally, providing benefits like health insurance, retirement plans, and flexible scheduling significantly enhances the overall package.

  1. Enhancing the Employee Experience

Creating a positive work environment is crucial and pivotal for attracting and retaining employees in the retail sector. Retailers should focus on improving the overall employee experience through various means, such as investing in training and development programs, promoting a healthy work-life balance, and fostering a culture of respect and inclusivity.

Statistics indicate that engaged employees are 87% less likely to leave their companies, emphasizing the significance of employee engagement. Moreover, 68% of employees consider training and development as the most important workplace policies, highlighting the importance of investing in these programs. Additionally, with 53% of employees prioritizing work-life balance when choosing a job, retailers must strive to promote a healthy equilibrium. By fostering a culture of respect and inclusivity, retailers can further contribute to employee satisfaction and retention, ultimately leading to a more successful and stable workforce.

  1. Leveraging Cutting-Edge Technology

By integrating technology into retail operations, retailers can effectively address staffing challenges and unlock new opportunities for success. Automation and self-service technologies play a crucial role in streamlining processes, reducing the dependency on excessive staffing, and enhancing overall efficiency. In fact, a survey revealed that 56% of retailers leverage automation specifically to lower labor costs. 

However, it is the advanced retail checkout solutions that are truly paving the way forward in this regard. Self-checkout systems, mobile payment options, and cashier-less stores, also known as autonomous shopping, are gaining rapid popularity among consumers. In fact, a remarkable 67% of consumers express their appreciation for retailers who offer self-checkout alternatives, reflecting the growing demand for convenient and efficient payment experiences.

These innovative technologies not only elevate the customer experience but also bring substantial benefits to retailers. Self-checkout minimizes the need for traditional cashier roles, freeing up employees to focus on other value-added tasks and improving overall employee productivity. By embracing these technologies, businesses can optimize staffing levels, reallocate resources to other critical areas, and deliver the seamless and convenient experiences that today's consumers expect.

  1. Building Talent Pipelines 
retail checkout solutions help foster satisfaction

Proactive recruitment is vital for overcoming the retail labor crisis. Retailers should establish partnerships with local educational institutions and offer internships, apprenticeships, and training programs to attract young talent. By building a talent pipeline, retailers can ensure a continuous supply of skilled workers who are familiar with their business and can contribute to its growth.

  1. Embracing Flexible Work Arrangements

Flexibility in work arrangements is increasingly vital for the modern workforce - especially since COVID-19. Offering part-time, seasonal, and remote work options appeals to individuals seeking non-traditional setups. Embracing flexibility allows retailers to tap into a broader talent pool, including students, retirees, and individuals with caregiving responsibilities. It is noteworthy that 74% of employees consider flexible work arrangements important, and 58% of employees say they would choose a job with a flexible schedule over one with a higher salary.

  1. Improving Employee Engagement and Recognition

Recognizing and appreciating employees' efforts and achievements is key to boosting morale and reducing turnover. Implementing employee recognition programs has a significant impact, as 69% of employees say they would work harder if their efforts were better recognized. Regular feedback and opportunities for career advancement are also crucial. Notably, 68% of employees believe a clear career path is essential for job satisfaction.

  1. Fostering Transparency: Building a Work Culture of Openness and Trust

Developing a transparent work culture has become increasingly crucial. Transparency cultivates an environment of openness and trust, enabling employees to feel valued and engaged while promoting collaboration and innovation. By embracing transparency, retail businesses can build stronger relationships with their workforce, enhance communication channels, and create a shared sense of purpose. Encouraging open dialogue, providing regular feedback, and sharing relevant information can empower employees to make informed decisions and contribute to the company's success. 

Tackling the Labor Shortage Head-On

The retail labor crisis presents significant challenges for retailers, but data-driven strategies can help them overcome these obstacles and build a strong and engaged workforce. By offering competitive compensation and benefits, enhancing the employee experience, leveraging retail checkout solutions, building talent pipelines, embracing flexible work arrangements, improving employee engagement and recognition, and collaborating with workforce development organizations, retailers can successfully navigate the retail labor crisis and position themselves for long-term success in the ever-evolving retail landscape.


Determining precise weights has always been an essential part of commerce, from ancient marketplaces to the silk road – that’s why our company name is Shekel, from the ancient Hebrew word for “to weigh.” Shekel has been at the forefront of the digital weighing industry for the past five decades, and we continue to lead through innovation.

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