Growing Fair Work in Retail

4. Understanding How Fair Work is currently being achieved across the sector

Overview

In 2025, a survey was carried out amongst retailers to understand fair work practices and how these are implemented across the Retail sector.

These practices relate to the five dimensions of Fair Work:

• Effective Voice
• Opportunities
• Security
• Fulfilment
• Respect

This survey was shared with individual retailers, as well as those who represent larger bodies and collectives.

Key Findings

• Overall, retailers in Scotland are supportive of Fair Work policies and are trying to implement these where possible.
• All respondents were able to provide at least one example of Fair Work which is already in place at their organisation
• However, responses indicate retailers often struggle to make Fair Work a priority, with other policies taking precedence.
• The main barriers to implementing Fair Work policies were noted as competing priorities and policies, rising business costs, and retail crime making the sector less desirable.

Detailed findings

Current Fair Work practices

All respondents were able to provide practices that they have implemented within their workplaces. Such as:

• Easier route to join the labour force for people who might find it difficult elsewhere - such as for students or those with caring responsibilities.
• Significant levels of internal progression.
• Ability for colleagues to join unions and negotiate for better pay and conditions.
• Seeking colleague views via unions and listening groups.
• Environment where colleagues feel safe to report wrongdoing without fear of action against them.
• A virtual GP service and mental health first aiders.
• Locally based flexible working hours.
• Various schemes, such as: cycle to work, employee discount, maternity and paternity leave, apprenticeships, wellbeing support.

Future Fair Work practices

Some respondents were not able to provide firm details on future plans, as they are still in development, or because they represent a larger body and do not hold individual retailers’ information such as this.

Other retailers were able to provide upcoming plans, such as:

• A diversity and inclusion report.
• More apprenticeship schemes.
• Embedding a values-centred approach to recruitment and performance management.

One notable response, from a respondent who represents a larger body of members, stated:

• ‘In discussions with several of our members, it was highlighted that many employers are working hard to improve and encourage staff retention through ‘one-off’ affordable measures. Such as providing improved staff spaces and facilities, and improved workspaces, conditions, and workplace environment.’

Fair Work challenges

44% of respondents said they do face an issue or issues.

Some of the issues listed were:

• Flexible workforce development fund (FWDF) was previously utilised, however this funding has been withdrawn.
• Lack of funding for local authorities so councils can plan ahead and invest in their economy, transport networks, and high streets.
• Policy burdens stopping Fair Work practices being able to be implemented, such as: non-domestic rates, Scotland-only business rates surcharge, NIC/NLW changes, rising staff costs.

Difficulties implementing or understanding Fair Work practices

While 57% of respondents indicated ‘yes, that they had a good knowledge of Fair Work practices and did not find anything difficult to understand or implement, 29% suggested ‘no’, that there are parts of Fair Work which are an issue.

Those indicating ‘no’ suggested several reasons for this answer, including:

• A growing challenge to make retail a desirable sector to work in, due to retail crime.
• Competing challenges and statutory responsibilities.

One response stated:

• ‘The challenge is perhaps more to do with competing challenges such as tough trading conditions and the welter of other statutory responsibilities coming through at the moment including on employment policy and rights’

On the whole, retailers appear to have a good understanding of Fair Work and its practices; the issue lies more in the application of these principles due to other regulatory burdens, rather than a lack of understanding of Fair Work.

Fair Work barriers

Barriers for retailers were noted as:

• Pressures linked to the growing cost of business and new regulations (rising cost of energy in the last five years, the impact of the higher NLW)
• Employer NICs are having an impact on businesses’ ability to employ new staff.
• A number of long-term systemic issues facing the sector.
• Cost of implementation in challenging trading conditions.

Notable retailer feedback included:

• ‘We are constantly having to review cost impacts of legislation changes which nearly always don’t result in sales growth and results in inevitable review of costs, automation and wages reduction.’
• ‘As operational costs increase for retailers, it becomes more difficult to provide wider benefits to their staff. This may affect the productivity of workers and their job satisfaction equivalent to the level of their responsibility.’

The survey concluded by asking retailers for any final feedback

• ‘There is a need to recognise that there are other competing priorities for retailers, such as trading, and some of which are statutory and so take precedence.’
• ‘Fair Work is highly dependent on what measures are taken by the Scottish Government to support the industry and retain jobs – both in the immediate sense and in the long term.’
• ‘For some employees, particularly given the rising cost of living, working from home will be an attractive option and this will exacerbate the current labour shortages as will the fact that many of the over 50s who lost their job during the pandemic are choosing not to re-join the labour market at the present. Convenience stores given the business model which they operate are being impacted, as they require staff to physically be in-store to work…’

Conclusion

It is obvious from the results that retailers are, where possible, trying to implement Fair Work elements into their organisations. However, due to various reasons, including costs and other competing priorities, Fair Work is not taking precedence for most businesses.