WorkJam RTS 2026 research: under pressure retailers forced to prioritise cost control over employee experience
WorkJam has released new research revealing that retailers are increasingly prioritising cost control over employee experience as rising labour costs and operational pressures force organisations to rethink how they manage their frontline workforce.
The findings, based on a survey of over 150 retail professionals conducted at Retail Technology Show 2026 in London last month, suggest the sector is undergoing a significant strategic shift compared to last year, with retailers moving away from workforce engagement strategies and toward short-term cost and operational measures.
Specifically, 37% of respondents are now prioritising cost control over employee retention and experience in their workforce strategy, while only 5% said employee experience remains the priority. This represents a dramatic change from 2025, when employee engagement was identified as the sector’s biggest challenge for the frontline workforce.
In addition, following rises in National Insurance contributions and the National Minimum Wage, 44% of retailers are responding by reducing or slowing hiring, while 29% are raising prices. This aligns with 2025 expectations, when 62% anticipated price increases and 59% expected redundancies.
“This is one of the sharpest and most risky strategic reversals we have seen in the sector in recent years,” says Mark Williams, Managing Director EMEA at WorkJam. “The pressure retailers are facing is real, but deprioritising employee experience is a short-term reaction that will negatively compound over time. The challenge for retailers is finding ways to reduce costs and simplify operations without losing focus on frontline engagement. With the right platform strategy, retailers can consolidate their tech stack while also improving the employee experience.”
At the same time, there has been little progress in foundational workforce management capabilities, with the adoption of fully automated digital workforce solutions remaining slow. AI maturity is still at an early stage for most organisations, while regulatory readiness also remains low, with only 25% making changes in response to the Employment Rights Bill.
Additional research findings include:
66% of respondents said that workforce pressures are forcing their organisations to rethink their operating models.
31% of retailers said their organisation still relies on basic workforce management tools, while 26% continue to use manual or outdated processes or have no formal process.
74% of respondents said their organisation is using AI in workforce operations, but only 13% reported deployment at scale.
Just 20% of retailers described their organisation’s AI maturity for workforce optimisation as advanced or mature.
Efficiency/productivity is the primary reason (56%) that retailers are investing in AI for workforce management, with only 15% doing so to improve employee experience.
“Frontline operations platforms are becoming increasingly important as retailers look to simplify operations without creating additional friction for employees,” Williams adds. “By bringing together scheduling, communication, task management and learning into a single platform, retailers can reduce the complexity and costs associated with fragmented systems, while also creating a more connected and engaging experience for frontline teams. The retailers that will be most successful are those recognising that operational efficiency and employee experience are closely linked, not competing priorities.”
2026 RTIH Innovation Awards
Frontline operations platforms will be a key focus area at the 2026 RTIH Innovation Awards.
The awards are now open for entries and celebrate global retail technology innovation in a fast moving omnichannel world.
Our winners will be revealed at the 2026 RTIH Innovation Awards Ceremony, taking place at The HAC in Central London on Wednesday, 4th November.
Check out our 2025 winners here.
Our 2025 hall of fame entrants were revealed during a sold out event which took place at The HAC on 16th October and consisted of a drinks reception, three course meal, and awards ceremony presided over by award winning comedian, actress and writer Tiff Stevenson.
In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “This is the awards’ fifth year as a physical event. We started off with just 30 people at the South Place Hotel not far from here, then moved to London Bridge Hotel, then The Barbican, and last year RIBA’s HQ in the West End.”
“But I’m conscious of the fact that, to quote the legend that is Taylor Swift, You’re only as hot as your last hit, baby. So, this year we’ve moved to our biggest venue yet, and also pulled in our largest number of entries to date and broken attendance records.”
He added: “This year’s submissions have without doubt been our best yet. To quote one of the judges: The examples of innovative developments across both traditional and digital retail spaces were truly remarkable.”
Congratulations to our winners, and a big thank you to our sponsors, judging panel, the legend that is Tiff Stevenson, and all those who attended our 2025 gathering.
