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Insights from the 2025 State of the UK Hourly Workforce Report –  ‘What Workers Want” [Part One]

The 2025 State of the UK Hourly Workforce report, produced by Legion in partnership with The Retail Bulletin, highlights key workforce trends and strategies that leading… View Article

RETAIL BUSINESS STRATEGY

Insights from the 2025 State of the UK Hourly Workforce Report – ‘What Workers Want” [Part One]

The 2025 State of the UK Hourly Workforce report, produced by Legion in partnership with The Retail Bulletin, highlights key workforce trends and strategies that leading employers are using to navigate these changes.

TRB are proud to bring you the first of this multi-part news series which explores the most urgent challenges facing our retailers today, with a focus on how businesses can use workforce management technology to balance cost pressures, retain employees, and remain competitive in an evolving labour market.

The Employee Perspective – What Workers Want in 2025

UK Retail’s Workforce Crisis: Employees Are Walking Away

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The UK retail and hospitality industries are the backbone of the economy, employing millions of workers across thousands of businesses. Yet, in 2025, these sectors face a mounting crisis—63% of hourly employees plan to leave their jobs within the next year, with 79% of younger workers (aged 18-24) expecting to quit.

This exodus is not just an HR challenge—it’s a fundamental threat to the stability of the UK’s retail workforce. Labour shortages are increasing, hiring is getting harder, and operational costs are soaring. The question is: why are employees leaving, and what can employers do to stop it?

Flexibility Is No Longer a Perk—It’s a Necessity

The data from the 2025 State of the UK Hourly Workforce report paints a clear picture: 72% of workers say schedule flexibility is the most important factor influencing their job decisions.

This issue is especially urgent given the UK’s cost-of-living crisis. With inflation and rent prices still high, workers are demanding more control over their schedules to balance multiple jobs, education, and personal responsibilities. Yet, many retailers are still operating on rigid scheduling models, leaving employees frustrated and eager to find jobs that offer better work-life balance.

For businesses, this lack of flexibility is costing them talent. 51% of employers cite inflexible scheduling as a major retention challenge, but only a small percentage have adopted technology to address the problem. AI-powered scheduling tools allow employees to swap shifts easily, bid for open shifts, and set their availability preferences—all while ensuring businesses maintain optimal staffing levels.

Earned Wage Access: A Solution for Financial Insecurity

Alongside flexibility, employees are also struggling with financial security. 40% of Gen Z workers say Earned Wage Access (EWA) is a top priority—meaning they want access to their wages before payday to help manage expenses. However, only 9% of employers currently offer this benefit.

With higher National Insurance contributions and rising minimum wage costs, many workers feel they are losing financial ground. Offering EWA can be a game-changer in improving employee satisfaction, reducing turnover, and keeping workers engaged in their roles.

What Should Employers Do?

Instead of relying on costly hiring cycles, retailers need to rethink how they retain their existing workforce by investing in solutions that provide employees with what they need most:

  •   Self-service scheduling tools that enable shift swapping and flexible work options
  •  Earned Wage Access to give employees more control over their finances
  • AI-powered workforce management to ensure staffing is optimised without burdening managers

Retailers who fail to adapt risk falling behind as competitors embrace a new era of workforce management.

Download the full report to see the data behind the trends.

 

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