The LIVD Blog

The Secret to Keeping Top Retail Talent? Perks They Control

Retail has seen the most significant drop in compensation satisfaction of any sector in 2025 (BambooHR, 2024). This isn’t just a statistic for store managers — it’s a daily reality. With turnover rates for part-time retail roles as high as 85% and frontline compensation falling behind inflation, even the best managers struggle to keep their teams intact and motivated.

The True Cost of Retail Turnover

Average cost to replace a retail employee: $4,896 (Inspirus, 2025)
Annual turnover rates: 24.9%–38.3% overall; up to 85% for part-time roles (DailyPay, 2024)

Impact: For a 20-person store, replacing just five staff members yearly can cost $25,000 or more in hiring, training, and lost sales.

Why Retail Employees Leave—And What Makes Them Stay

Recent surveys reveal the top reasons for retail turnover:

Compensation dissatisfaction: Retail saw the sharpest decline in pay satisfaction of any industry in 2025 (BambooHR, 2024).
Limited advancement: Many leave for better opportunities elsewhere.
Burnout and stress: Unpredictable scheduling and high-pressure sales environments take a toll.
Low engagement: 70% of retail employees report feeling disengaged at work (People in Retail Awards, 2025).
Irrelevant benefits: Traditional perks are often unused and fail to address real needs.

Flexible, Personalized Benefits: The Small Business Advantage

You may not be able to match big-box stores on pay, but you can compete — and win — by offering what they often can’t: flexibility and choice. Modern benefits platforms like LIVD empower you to give employees flexible benefits they can use on what matters most to them, from transportation and wellness to childcare and professional development.

How to Stand Out in a Competitive Retail Labor Market

Ask your team what they value. Use quick surveys or check-ins to understand which benefits would make the biggest difference.
Offer flexible, personalized perks. Even a small monthly allowance can boost retention if employees can choose how to use it.
Recognize and celebrate your staff. Public recognition and small rewards go a long way in making employees feel valued.

The Bottom Line

With compensation satisfaction at an all-time low, retail turnover is more costly than ever, but it’s not inevitable. Investing in flexible, relevant benefits and listening to your team can build loyalty, reduce churn, and create a store culture that attracts and keeps top talent, even on a small business budget.

Supporting Retail Teams, Every Day

Retail leaders face more pressure than ever — from shrinking margins to high turnover and shifting employee expectations. But you don’t need a big-box budget to build a loyal, high-performing team. By offering flexible, personalized perks and genuinely listening to your staff, you can create a workplace where people want to stay and grow.

At LIVD, we’re here to help retail owners and managers compete for top talent, without the complexity or cost of traditional benefits. Our platform makes it simple to deliver meaningful perks, streamline admin, and show your team they matter.

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