The retail industry is undergoing a profound transformation, with HR teams playing a pivotal role in shaping company success and the future workforce. From addressing high turnover rates and labor shortages, to leveraging digital transformation for recruiting and employee engagement, retail HR leaders are redefining themselves to increase efficiency and ROI.
To find out what’s top of mind for retail HR leaders as they drive the industry’s continued evolution in 2025, Checkr surveyed 1,000 HR professionals on their top pain points, innovative solutions and strategic priorities. The following four insights reveal how they’re building more resilient, future-ready HR functions to tackle the complexities of modern retail.
1. Enhancing the employee experience is now a #1 priority
Looking ahead, retailers see enhancing the employee experience as their most critical priority, underscoring the importance of fostering satisfaction, engagement and retention in a competitive labor market.
In addition to investing in initiatives that improve employee engagement and satisfaction, retail HR leaders are also prioritizing measuring quality of hire (ranked #1 by 42% of respondents) and employee retention rate to drive future improvement. Together, these findings demonstrate the importance of building a stable and satisfied workforce while maintaining a seamless and positive hiring experience for candidates in 2025.
2. Overcoming technology adoption barriers in retail HR is a must
Even as retailers embrace innovation for customers’ sake, HR leaders face persistent barriers to technology adoption on the talent acquisition and retention fronts. Specifically, budget limitations, customizing solutions to meet specific hiring needs, and resistance to new tech.
Yet respondents who have effectively deployed new technology agree that AI-powered hiring solutions are key to gaining a competitive edge in retail’s fiercely competitive hiring landscape. Their top two recommendations? Automated background check data collection (#1) and AI-driven resume screening (#2), reflecting the need for accuracy and efficiency in evaluating high volumes of candidates.
3. Offering competitive pay and benefits combats high turnover
Amid the industry’s ongoing struggles with recruitment and retention, it’s no surprise that retail HR leaders say high turnover rates, labor shortages and employee engagement are their most significant pain points heading into 2025.
To address these challenges, respondents cite offering competitive pay and benefits as the most effective strategy, followed by fast, accurate background checks and streamlined application processes. Clearly, meeting candidates where they’re at (whether with better compensation or a hiring process that respects their time) works best for retailers battling with other retailers and even other industries for qualified talent.
4. Candidate experience is a strategic opportunity to stand out
Three-quarters (75%) of retail HR leaders say candidate experience is an “important” or “very important” component of their hiring strategy. This strong consensus demonstrates just how valuable creating a seamless, transparent and positive experience for job seekers has become for the industry.
A strong focus on candidate experience not only improves recruitment outcomes for retailers, as measured by quality of hire and employee retention rate, it also strengthens employer branding, ultimately helping retailers stand out in a highly competitive talent acquisition climate.
Bringing it all together in 2025 for a more resilient HR function
As these survey findings show, retail HR leaders are adapting quickly to changing hiring conditions and staffing needs by enacting essential improvements across multiple hiring fronts. By doing so, they’re also showing the way for other retail HR leaders to build a more resilient function in 2025 and beyond through the right combination of technology investment, candidate and employee experience upgrades, and recruitment metrics to pave the way for success.
Curious what else retail HR leaders are doing to continuously drive organizational success? Explore more insights from the full Checkr report, Retail Hiring Redefined: Strategic Insights from HR Leaders.
