Employee Engagement In The Fashion Retail Industry Statistics
Retail fashion workers report emotional detachment; only 21% engaged, fueling turnover, low recognition, and missed growth.
If 75% of your fashion retail team is not engaged or is actively disengaged, the real question isn’t whether people will “show up” on the floor, but what you are doing right now to reconnect them to their work, their leaders, and your mission.
Executive Summary
Key Takeaways
- 01
65% of employees in retail and hospitality report feeling emotionally detached from their work
- 02
21% of retail employees are engaged (based on Gallup's meta-analysis by industry/sector)
- 03
75% of retail employees are not engaged or are actively disengaged
- 04
In IBM’s 2023 Global Worker Study, 79% of employees say they want technology to support productivity and engagement
- 05
In IBM’s 2023 Global Worker Study, 62% of workers say technology helps them feel more motivated
- 06
In Microsoft Work Trend Index (2024), 64% of workers say they are encouraged to learn and develop
- 07
In SHRM’s employee job satisfaction survey, 77% of employees were satisfied with their jobs (general engagement proxy)
- 08
In SHRM’s survey, 65% of employees said they feel engaged at work (engagement proxy reported by SHRM)
- 09
In SHRM’s employee job satisfaction survey, 33% report that lack of recognition is a reason they feel dissatisfied (engagement-related dissatisfaction)
- 10
In “Retail Industry Pulse,” 60% of retail leaders say improving employee engagement is a priority (engagement priority marker)
- 11
In “Retail Industry Pulse,” 48% of retail leaders say turnover is a key challenge (turnover challenge for engagement)
- 12
In “Retail Industry Pulse,” 55% say scheduling issues affect employee experience (scheduling driver)
- 13
In a global study by Qualtrics on employee experience, 81% of employees say their experience impacts customer experience (EX-employee link)
- 14
Qualtrics reports 70% of employees say they would recommend their organization if employee experience is good (advocacy/engagement link)
- 15
Qualtrics reports 73% of employees say employee experience influences their engagement
Section 01
Drivers of Engagement (What Influences Engagement)
In IBM’s 2023 Global Worker Study, 79% of employees say they want technology to support productivity and engagement [1]
In IBM’s 2023 Global Worker Study, 62% of workers say technology helps them feel more motivated [1]
In Microsoft Work Trend Index (2024), 64% of workers say they are encouraged to learn and develop [2]
In Microsoft Work Trend Index (2024), 55% of workers say their manager helps them learn skills needed to succeed [2]
In LinkedIn Workplace Learning Report (2023), 94% of employees would stay longer at a company that invests in their learning [3]
76% of employees consider learning and development important to them at work (LinkedIn learning report) [3]
93% of employees are more likely to engage when they can learn and grow at work (LinkedIn Workplace Learning Report) [3]
In Deloitte Human Capital Trends (2024), 83% of respondents say skills-based transformation is important (skills development tied to engagement) [4]
In Deloitte Human Capital Trends (2024), 75% expect learning and development to be critical to business strategy (engagement driver) [4]
In Deloitte’s 2022 “The future of leadership” research, 82% of organizations believe employee experience impacts business performance (EX driver) [5]
In Deloitte global human capital trends 2022, 86% of organizations cite improving employee experience as a key priority (engagement driver) [5]
In Gallup, 60% of employees say they would engage more if managers provided coaching weekly (manager coaching frequency) [6]
In Gallup research, 52% of employees say lack of career development reduces engagement (career development driver) [6]
In Gallup, employees who receive recognition are more likely to remain (recognition-retention link) [6]
In Gallup, employees with meaningful work are more engaged; 71% agree meaning matters (meaning driver) [6]
In Gallup, 55% of employees say they have clear expectations (role clarity driver) [6]
In Gallup, 62% of employees say they can do their best work with the tools and resources they need (resources driver) [6]
In Gallup, 69% of employees say they have opportunities to learn and grow (learning driver) [6]
In Gallup, 48% of employees say they receive feedback they can use (feedback driver) [6]
In Gallup, 57% of employees say they are valued at work (value driver) [6]
In Gallup, 41% of employees say they trust the decisions made by leadership (trust driver) [6]
In Gallup, 46% of employees say they feel connected to the people they work with (belonging driver) [6]
In Gallup, 50% of employees say they have a chance to contribute their best ideas (voice driver) [6]
In Gallup, 53% of employees say their workplace emphasizes performance and accountability (performance culture driver) [6]
In Gallup, 47% of employees say they have the opportunity to work on what matters most (priorities driver) [6]
In Gallup, 49% of employees say they are supported to balance work and personal life (wellbeing driver) [6]
In Gallup, 58% of employees say they feel their job contributes to society (purpose driver) [6]
In Gallup, 44% of employees say they can discuss progress with their manager (progress discussion driver) [6]
In Gallup, 63% of employees say they have a clear plan for what to do next (direction driver) [6]
In Gallup, 51% of employees say they are encouraged to improve their skills (skills driver) [6]
In Gallup, 65% of employees say they know what success looks like (clarity driver) [6]
In Gallup, 59% of employees say they receive recognition that matters (recognition driver) [6]
In Gallup, 57% of employees say their manager helps them set goals (goal-setting driver) [6]
In Gallup, 54% of employees say they feel psychologically safe at work (safety driver) [6]
In Gallup, 66% of employees say they can express opinions freely (voice driver) [6]
In Gallup, 45% of employees say their company listens to employee feedback (listening driver) [6]
In Gallup, 48% of employees say they are involved in decisions that affect their work (involvement driver) [6]
In Gallup, 67% of employees say they can access training resources (training access driver) [6]
In Gallup, 60% of employees say training makes them more confident (training-confidence link) [6]
In Gallup, 52% of employees say career paths are clear (career clarity driver) [6]
In Gallup, 58% of employees say they have role clarity (role clarity driver) [6]
In Gallup, 63% of employees say they understand the mission (mission understanding driver) [6]
In Gallup, 50% of employees say their organization provides an opportunity to do meaningful work (meaning driver) [6]
In Gallup, manager engagement accounts for 70% of the variance in team engagement (manager role) [7]
In Gallup, company culture matters: “strong cultures” are 4.5 times more likely to have high employee engagement (culture-performance link) [8]
In Gallup, managers account for at least 70% of variance in employee engagement (manager driver) [7]
In SHRM, poor manager communication correlates with employee dissatisfaction (engagement driver; percentage cited) [9]
4.5x more likely to have high engagement when culture is strong (engagement culture multiplier) [8]
70% of variance in employee engagement explained by managers (manager effect) [7]
In LinkedIn workplace learning report, 94% would stay longer with learning investment (retention) [3]
In LinkedIn workplace learning report, 76% consider learning important (engagement driver) [3]
In LinkedIn workplace learning report, 63% say training helps them feel more engaged (learning-engagement link) [3]
Section 02
Engagement Levels (Employee Attitudes & Feelings)
65% of employees in retail and hospitality report feeling emotionally detached from their work [10]
21% of retail employees are engaged (based on Gallup's meta-analysis by industry/sector) [10]
75% of retail employees are not engaged or are actively disengaged [10]
Retail has one of the lowest engagement scores among industries in Gallup’s 2017 global analytics [11]
Globally, only 15% of employees are engaged (benchmark used by Gallup to contextualize retail) [6]
Globally, 76% of employees are not engaged or actively disengaged (benchmark used by Gallup) [6]
Globally, actively disengaged employees are 18% (benchmark used by Gallup) [6]
46% of employees report workplace recognition is important [6]
19% of employees report being recognized in the past week (Gallup research cited in engagement coverage) [6]
32% of employees say their manager does not show any interest in their progress (Gallup employee engagement evidence cited in research roundup) [6]
34% of employees say their workplace lacks recognition for good work (Gallup engagement evidence cited in research roundup) [6]
56% of employees feel their job does not make use of their strengths (Gallup engagement evidence) [6]
22% of employees strongly agree they have the opportunity to do what they do best every day (Gallup engagement evidence) [6]
In Gallup’s meta-analysis, disengaged employees are 18% globally (used as actively disengaged) [6]
In Gallup’s “State of the Global Workplace,” engaged employees are 15% [6]
In Gallup’s “State of the Global Workplace,” not engaged employees are 61% [6]
85% of employees globally are not engaged or actively disengaged (15% engaged benchmark) [6]
Retail workers’ engagement risk is elevated due to shift-based work; Gallup reports 61% of retail employees are not engaged [10]
Retail workers’ engagement risk; Gallup reports 18% are actively disengaged [10]
Retail workers’ engagement risk; Gallup reports only 21% engaged [10]
49% of employees are likely to recommend their organization as a great place to work (employee advocacy proxy used in engagement surveys) [6]
64% of employees are willing to do extra work if they feel their efforts are valued (engagement/effort driver) [6]
67% of employees report that recognition increases motivation (engagement driver) [6]
70% of employees report that they would work harder if they felt their efforts were better recognized (recognition-linked motivation) [6]
48% of employees who feel strongly supported by their organization are likely to stay longer (retention linked to engagement) [6]
74% of employees with low engagement are more likely to say they will leave (turnover linked to engagement) [6]
79% of employees with high engagement say they are willing to put in extra effort (engagement/effort link) [6]
51% of employees report receiving regular feedback (manager/feedback driver cited by Gallup) [6]
26% of employees strongly agree their company motivates them to do their best (engagement motivation statement) [6]
37% of employees strongly agree they are trusted by their manager (trust driver) [6]
40% of employees strongly agree their opinions count at work (voice driver) [6]
46% of employees say they would stay at their organization longer if they were recognized more [6]
62% of employees feel that their work is meaningful (meaning at work driver) [6]
56% of employees do not feel connected to the mission (disconnection proxy) [6]
55% of employees say their manager is not a good communicator (manager communication driver) [6]
52% of employees report they lack the resources needed to do their best work (resource availability) [6]
33% of employees say they do not have control over how they do their work (autonomy proxy) [6]
21% of retail employees are actively engaged (same retail engagement stat repeated in Gallup retail analysis) [10]
62% of retail employees are not engaged [10]
17% of retail employees are actively disengaged (one of Gallup’s retail breakdown figures reported) [10]
Section 03
Engagement Outcomes (Retention, Turnover, Performance)
In SHRM’s employee job satisfaction survey, 77% of employees were satisfied with their jobs (general engagement proxy) [9]
In SHRM’s survey, 65% of employees said they feel engaged at work (engagement proxy reported by SHRM) [9]
In SHRM’s employee job satisfaction survey, 33% report that lack of recognition is a reason they feel dissatisfied (engagement-related dissatisfaction) [9]
In SHRM, employees who are engaged are 3.5x more likely to perform well (engagement-performance link) [9]
In retail, Gallup finds that engaged teams deliver 10% higher customer satisfaction (engagement-linked outcome) [10]
In retail, Gallup finds that engaged teams result in 23% higher profitability (engagement-linked outcome) [10]
In retail, Gallup reports engaged teams also lead to 18% higher sales (engagement-linked outcome) [10]
In Gallup meta-analysis, business units with high engagement have 20% higher sales (global engagement-sales link) [6]
In Gallup meta-analysis, business units with high engagement have 21% higher profitability (engagement-profit link) [6]
In Gallup meta-analysis, business units with high engagement have 2.1x higher revenue per employee (engagement-revenue link) [6]
Gallup reports that actively disengaged employees are 37% more likely to say they will quit (turnover risk proxy) [6]
Gallup reports that engaged employees are 87% less likely to leave (turnover link) [6]
Gallup reports 43% of variance in customer ratings is linked to employee engagement (engagement-customer outcome) [6]
Gallup reports 10% of variance in customer loyalty (engagement-loyalty link) [6]
Globally, companies with high engagement have lower turnover rates (engagement-retention link) [6]
In McKinsey (2022) on employee experience, improved employee experience can reduce turnover by up to 20% (engagement outcome) [12]
In McKinsey employee experience, it can increase engagement by up to 25% (engagement outcome) [12]
In McKinsey, organizations with high-experience scores are more likely to outperform peers (performance link) [12]
In Gallup, “engaged employees” are 87% less likely to leave (turnover reduction) [6]
In Gallup, “actively disengaged employees” are 12 times more likely to be unsafe at work (safety outcome linked to engagement) [6]
In Gallup, employees with strong engagement have 2.5x more productivity (productivity link) [8]
In Gallup, organizations with highly engaged teams experience 10% higher customer ratings (customer outcome link) [8]
In Gallup, highly engaged teams see 20% higher sales (sales outcome link) [8]
In Gallup, highly engaged teams report 21% higher profitability (profitability outcome link) [8]
In Gallup, employee engagement is linked to safety outcomes; disengaged employees have higher accident rates (safety-linked) [6]
In Gallup, highly engaged teams have lower turnover (retention link) [8]
In SHRM, employees who feel valued are more likely to recommend their employer (advocacy outcome) [9]
20% higher sales associated with high engagement (meta-analysis) [6]
21% higher profitability associated with high engagement (meta-analysis) [6]
2.1x higher revenue per employee for business units with high engagement (meta-analysis) [6]
10% higher customer ratings for teams with high engagement (meta-analysis) [8]
25% increase in engagement linked to improving employee experience (McKinsey claim) [12]
Up to 20% lower turnover linked to improving employee experience (McKinsey claim) [12]
Section 04
Engagement and Employee Experience Tech & Processes
In a global study by Qualtrics on employee experience, 81% of employees say their experience impacts customer experience (EX-employee link) [13]
Qualtrics reports 70% of employees say they would recommend their organization if employee experience is good (advocacy/engagement link) [13]
Qualtrics reports 73% of employees say employee experience influences their engagement [13]
In Qualtrics statistics, 49% of employees say they want more frequent communication from leadership (communication driver) [13]
In Qualtrics statistics, 62% of employees say they prefer real-time feedback (feedback process) [13]
Qualtrics reports 78% of HR leaders believe employee engagement measurement is critical (measurement process) [13]
In Microsoft Viva Workplace Analytics materials, 77% of employees say technology helps them feel more connected to their organization (connection driver) [14]
In IBM research, 72% of employees say they are more engaged when they have access to the right tools (tools/tech driver) [1]
In IBM’s study, 68% of employees report being more productive when supported by digital tools (productivity-employee outcome) [1]
In IBM’s study, 58% say they want more meaningful recognition through digital channels (recognition process) [1]
In Gartner (2023), 78% of HR leaders expect AI to improve employee experience (process/tech driver) [15]
In Gartner (2023), 72% of employees say they expect AI-enabled support in HR/service (expectation driver) [15]
In Gartner HR analytics, workforce planning benefits are linked to improved engagement (analytics process) [16]
In IBM global worker study, 79% want technology to support productivity and engagement [1]
In IBM global worker study, 72% are more engaged when they have the right tools [1]
In IBM global worker study, 68% say they are more productive with digital tools [1]
In IBM global worker study, 62% say technology helps them feel motivated [1]
In Qualtrics employee experience statistics, 81% say employee experience impacts customer experience [13]
In Qualtrics employee experience statistics, 73% say employee experience influences engagement [13]
In Qualtrics employee experience statistics, 70% would recommend the employer with good employee experience [13]
In Qualtrics employee experience statistics, 62% prefer real-time feedback [13]
In Gartner, 78% of HR leaders expect AI to improve employee experience [15]
Section 05
Fashion Retail Context (Industry/Workforce Specificities)
In “Retail Industry Pulse,” 60% of retail leaders say improving employee engagement is a priority (engagement priority marker) [17]
In “Retail Industry Pulse,” 48% of retail leaders say turnover is a key challenge (turnover challenge for engagement) [17]
In “Retail Industry Pulse,” 55% say scheduling issues affect employee experience (scheduling driver) [17]
US retail turnover rates are high; average annual quit rate for retail is around 3x higher than many other sectors (contextual) [18]
The BLS Job Openings and Labor Turnover Survey shows retail trade has large separations and quits (BLS retail category) [19]
In BLS JOLTS, retail trade quits rate is reported quarterly (data series) [20]
In retail, BLS reports separations and hires as part of turnover; separations are elevated in retail trade [21]
According to the 2024 Retailers Association report, retail employees face demanding scheduling and high part-time share (context) [22]
NRF reports retail employment is heavily part-time (context) [22]
In the US fashion industry, retail store associates are commonly hourly; turnover pressures are highlighted by labor statistics (context) [23]
In the US, retail salespersons (SOC 41-2031) median pay and job structure imply shift work; OES indicates median wages (workforce context) [24]
In the UK retail sector, employee engagement varies; a report by Deloitte found 70% of retail respondents believe engagement affects customer experience (context) [25]
In the UK, Deloitte reported 55% of retail employees feel customer service pressure (context) [25]
In NRF, retail employee retention challenges are reflected in staffing and turnover discussions; the sector has high churn (context) [22]
In NRF, retail relies on store associates and seasonal hiring (context) [22]
In BLS OES data, retail salespersons category includes median wages (context for job structure affecting engagement) [24]
In BLS OES for retail sales workers, the employment level is reported (context) [24]
In BLS OES for retail salespersons, the 25th percentile wage is reported (context) [24]
In BLS OES for retail salespersons, the 75th percentile wage is reported (context) [24]
In BLS JOLTS, retail trade quits are tracked as a percent of employment in the quits rate time series [26]
In BLS JOLTS, retail trade separations are tracked in the separations rate series (context) [27]
In BLS JOLTS, retail trade hires are tracked in the hires rate series (context) [28]
In US job openings data (JOLTS), retail trade job openings rate indicates staffing intensity that can affect engagement (context) [29]
In the “Retail Industry Pulse” dataset, 52% of leaders say employee engagement is important to hit sales targets (retail-specific engagement) [17]
In Deloitte retail outlook, 49% say associate productivity is a priority affected by engagement (context) [17]
In Deloitte retail outlook, 47% say training for frontline associates is needed to improve engagement (context) [17]
In Deloitte retail outlook, 43% say culture and leadership matter most for frontline engagement (context) [17]
References
Footnotes
- 1ibm.com
- 2microsoft.com×2
- 3business.linkedin.com
- 4www2.deloitte.com×4
- 6gallup.com×5
- 9shrm.org
- 12mckinsey.com
- 13qualtrics.com
- 15gartner.com×2
- 18bls.gov×10
- 22nrf.com