Retail has long been the heartbeat of the economy — but today, it’s also one of the hardest sectors to staff and sustain.
In 2025, retail saw the sharpest drop in compensation satisfaction of any industry (BambooHR, 2024). Add in turnover rates as high as 85% for part-time roles, and it’s clear: traditional pay and perks aren’t cutting it anymore.
Even the most seasoned store leaders are feeling the strain. Between rising costs, unpredictable schedules, and employees seeking greater flexibility, it’s harder than ever to keep teams engaged and motivated. But there’s a growing movement among HR and operations leaders who’ve found a better way — by rethinking how benefits are designed and delivered.
The True Cost of Retail Turnover
When turnover spikes, it doesn’t just drain your staffing budget — it impacts your culture, productivity, and customer experience.
Here’s what the numbers reveal:
- Average cost to replace one retail employee: $4,896 (Inspirus, 2025)
- Annual turnover rate: 24.9%–38.3% overall; up to 85% for part-time roles (DailyPay, 2024)
- For a 20-person store: Replacing just five staff members per year can cost $25,000+ in hiring, training, and lost sales.
And those are just the measurable costs. The harder-to-see impacts — declining morale, inconsistent service, and burnout among remaining staff — make the real toll even higher.
Why Retail Employees Leave — and What Makes Them Stay
It’s tempting to point to pay as the main problem, but the story goes deeper. Retail employees are asking for something bigger: a sense of control, recognition, and respect.
Here’s what recent research shows:
- Compensation dissatisfaction: Retail saw the largest decline in pay satisfaction across all industries (BambooHR, 2024).
- Limited advancement: Many leave for growth opportunities elsewhere.
- Burnout and stress: Unpredictable schedules and high-pressure sales environments create constant strain.
- Low engagement: 70% of retail employees report feeling disengaged at work (People in Retail Awards, 2025).
- Irrelevant benefits: Traditional perks go unused and fail to meet real-life needs.
Today’s retail workers aren’t just chasing higher wages — they’re looking for flexibility, personal choice, and wellbeing.
Lifestyle Benefits: The Modern Advantage for Retail Employers
Here’s the good news: you don’t have to compete dollar-for-dollar with big-box retailers to win loyalty. You can compete — and win — by offering what they often can’t: lifestyle benefits that give employees real control.
Flexible benefits platforms like LIVD allow HR leaders and business owners to provide monthly lifestyle credits that employees can use on what matters most to them — whether that’s wellness, transportation, childcare, or personal development.
This approach signals something powerful: We trust you to know what’s best for your life.
How HR Leaders Can Build a Competitive Edge in Retail
Even small adjustments can make a measurable impact on engagement and retention.
Here are four actionable ways to start:
- Listen first. Ask your teams what benefits would make the biggest difference. The simple act of asking builds trust.
- Embrace flexibility. Give employees autonomy — from how they use their benefits to how they schedule their shifts.
- Make recognition routine. Celebrate milestones, customer praise, and small wins publicly to reinforce a culture of appreciation.
- Adopt a flexible benefits platform. Platforms like LIVD make it simple to offer lifestyle benefits that align with diverse needs — all while streamlining administration for HR and operations teams.
The Bottom Line: Retention Starts with Relevance
Retail turnover may be high, but it’s not inevitable. The key to loyalty isn’t just higher pay — it’s personalization. When employees feel seen, supported, and empowered to choose the benefits that matter most, they’re far more likely to stay, grow, and give their best.
Lifestyle benefits are no longer a “nice-to-have” — they’re a business advantage. And they’re redefining what it means to build a loyal, engaged workforce in retail.
Supporting HR Leaders Who Support Frontline Teams
Retail leaders face more pressure than ever — from shrinking margins to shifting employee expectations. But the right total rewards strategy can turn those challenges into opportunities.
At LIVD, we’re helping forward-thinking HR and people leaders bring flexibility and personalization to every level of their organization. Our platform makes it effortless to deliver lifestyle benefits that boost engagement, strengthen retention, and show employees that they truly matter.
Because when your people feel valued, your customers feel it too.
