With back-to-school shopping still going and holiday buying around the corner, retail leaders not only face the challenge of increased traffic, but heightened employee turnover as well.

New analysis from ADP Research published in Issue 2 of Today at Work 2025 found turnover among retail workers spikes during the summer months. Based on five years of ADP payroll data, the turnover rate for June, July, and August increases to 3.56 percent from 3.14 percent during the rest of the year.

The retail industry stands out among the 13 industries ADP Research analyzed. Retail turnover is the highest of all industries during the majority of the year at 4.6 percent. During the summer months, retail turnover jumps to 4.87 percent, the second highest amongst all industries.

While increased turnover may feel like a familiar pattern for retail employers, it doesn’t have to be the norm. For leaders looking to lower their employee turnover, here are four key retention strategies they can consider.

Stay Interviews, Not Just Exit Interviews

In fast-paced environments like retail shops, it’s important to keep a pulse on how employees are feeling by checking-in early and often. For teams that rely on younger staff, these conversations can be especially valuable as many of them are learning how to balance work and other responsibilities for the first time. Regular, transparent communication with staff can help keep them engaged. A short conversation today can prevent a potential resignation tomorrow.

One proactive retention tool that people leaders can implement are “stay” interviews – proactive check-ins with employees to understand what’s going well and where there are areas for improvement. Based on these stay interviews, retail employers can hear directly from workers in an effort to optimize the employee experience.

Recognition That Resonates

Engaged workers are productive workers, and one of the most effective ways to keep employees engaged is by recognizing the impact they make on their team and the business.

In a retail environment, that recognition might look like celebrating a store associate who consistently earns positive customer feedback or acknowledging a corporate team member who played a key role in a successful product rollout.

Proper recognition doesn’t have a one-size-fits-all solution either, as every employee has a different way they prefer to be recognized. Some may prefer public praise during a meeting, while others may prefer a quiet thank you. Taking the time to understand each person’s preferences will ensure that praise lands with authenticity and meaning, rather than obligation. Thoughtful, well-timed appreciation helps build a culture where employees feel seen, valued and motivated to stay.

Growth Opportunities in Different Shapes and Sizes

Previous ADP Research has found that when employees feel invested in, they’re more likely to recommend the company as a great place to work, be highly productive, and remain with an organization.

Employees are looking for more than just a steady income; they want to see a future at their company. When employees understand how they can grow within an organization, they’re more likely to stay engaged at work. Growth doesn’t always necessarily have to mean a promotion either. Employees can move laterally to learn new parts of the business, develop new skills, or pursue experiential learning opportunities for continuous development.

An effective approach is peer mentoring and cross-functional work. Pairing a seasoned employee with a new hire allows for the more tenured employee to pass down business knowledge and guidance while also working to build leadership skills.

However, supporting employee development starts from the top down. To see growth in their employees, organizations must invest in their managers, providing them with tools for success. Leaders should be equipped with the necessary training to identify employee potential, discuss employees’ futures, and cultivate growth in a way that aligns with business needs and personal aspirations.

Engagement Starts With Leadership

According to ADP Research, when a team leader is fully engaged, 65 percent of team members are fully engaged. But when a team leader is not fully engaged, less than 1 percent of team members are fully engaged.

The takeaway is clear: engaged leaders create engaged teams. And engaged teams are more likely to be retained teams.

Small, consistent actions are the best way to begin building engagement within your organization. Taking time to learn who your employees really are, looping them into decision-making when possible, and exhibiting enthusiasm at work can all have positive effects on engagement.

By focusing on regular check-ins, personalized recognition, growth opportunities, and authentic engagement, retail employers can take meaningful steps to improve retention and build a better workplace.

Now in her 30th year with ADP, a global leader in HR and payroll solutions, Amy Freshman, senior director, global HR at ADP, joined HR in 2012 and has largely been involved in work connected to the employee experience and building a work environment that fosters engagement and creates a caring workplace culture.