2026

The Retail CHRO Insights Report

Modernizing hiring and retention at scale

Retail HR leaders are operating in an environment defined by constant hiring demand, shifting candidate expectations, and ongoing pressure to attract and retain workers in a high-volume labor market.

As workforce dynamics continue to evolve, HR teams are being asked to move faster, deliver stronger experiences, and modernize hiring systems while maintaining consistency and trust.

Drawing on insights from 500 CHROs and senior HR leaders in the retail industry, this report highlights where retail HR is prioritizing modernization, what barriers remain, and how the industry is preparing for a more competitive and complex future of work.

Fast facts from the field

Retail leaders prioritize AI for high-impact hiring workflows

Where can AI deliver the greatest operational improvement?

#1

Background check speed and accuracy

#2

Resume screening and early-stage filtering

#3

Interview scheduling

Retail AI adoption intent mirrors the overall market

85%
of retail CHROs plan to deploy AI in hiring this year, matching the all-industry benchmark

Retail HR isn’t completely confident in identity fraud prevention

71%
71% are not fully confident they are preventing identity misrepresentation

Retention remains the biggest risk

30% of retail CHROs say employee retention is their top organizational risk

HR technology tools meet—but rarely exceed—expectations

23%

Marginal or unsatisfactory

47%

Meets expectations

28%

Exceed expectations

The future demands balanced leadership

50% of retail CHROs believe the best HR leaders will be defined by a balance of technical fluency and human judgment

1

Future-proofing operations with AI tech and tools

Retail hiring is shaped by scale, speed, and constant workforce movement, making operational efficiency a central priority for HR teams. As retail organizations modernize, leaders are focusing on the hiring workflow areas where automation and technology can relieve recruiter burden, improve consistency, and strengthen integrity.

What retail CHROs want from AI in 2026

Retail HR leaders are clear about where AI can provide the most immediate operational value, particularly in workflows that reduce manual screening and accelerate hiring. These priorities mirror the all-industry benchmark suggesting retail hiring challenges reflect broader CHRO concerns around speed, scale, and integrity.

Where AI can deliver greatest value for retail HR

  • Background check speed and accuracy
  • Resume screening and early-stage filtering
  • Interview scheduling
  • Detecting identity fraud
  • Managing recruiter workload at scale

The takeaway

AI-powered background check enhancements are a top priority across industries, including retail. Identity fraud has also moved into the Top 5 AI priorities in 2026, signaling a sharper focus on risk management technology in retail hiring, and a growing demand for AI solutions that protect both organizations and employees at scale.

Do hiring tools really deliver?

Retail CHROs report mixed performance when evaluating whether HR technology investments deliver on promises. Although 47% say tools meet expectations, 26% say they’re marginal or unsatisfactory.

Retail aligns closely with the all-industry benchmark, both in the “meets expectations” category and in limited breakthrough performance. Just 28% of retail CHROs say tools are exceptional or exceed expectations.

Retail
All industries

How CHROs really feel about their tech stack in 2026

47%say tools meet expectations
26%say tools are marginal or unsatisfactory
28%say tools exceed expectations or are exceptional

Tech optimization successes and struggles

While retail leaders recognize technology’s potential to streamline hiring, hurdles to optimizing their tech stacks remain. Budget is the most frequently cited roadblock, but integration and customization also pose challenges.

These results suggest retail leaders face a balancing act between modernizing quickly and managing constraints.

Retail’s top tech roadblocks

23%Budget limitations
16%Customization constraints
15%Insufficient analytics or tracking capabilities
14%Lack of integration between tools and systems

How to make faster decisions with consistency and trust

Modernizing retail hiring is most effective when focused on the operational pressure points that create the greatest strain on recruiters, managers, and candidates. To identify the highest-impact modernization opportunities, retail HR leaders should examine where hiring friction is most persistent, then prioritize execution and integration to improve hiring outcomes at scale.

Ask your team

  • Where do hiring bottlenecks most often delay high-volume recruiting?
  • Which steps still rely heavily on manual review, coordination, or workarounds?
  • Are background checks, screening, and identity controls keeping pace with hiring speed needs?
  • Do current tools truly reduce recruiter workload, or simply shift effort elsewhere?

Take this action

  • Audit hiring workflows end-to-end to pinpoint operational breakdowns.
  • Focus on connecting systems before adding new tools.
  • Measure technology performance against recruiter time saved and candidate experience.
  • Prioritize integrity controls alongside speed improvements.
2

Balancing talent strategy and trust

Retail talent teams are tasked with attracting and retaining a workforce shaped by flexibility demands and competitive pressures. As technology becomes more embedded in hiring flows, success increasingly depends on clear employee value propositions (EVPs), effective fraud prevention, and maintaining candidate trust.

How retail CHROs plan to compete for talent in 2026

Retail leaders take a strategic view of what matters most in 2026, with priorities including hiring acceleration, employee experience, and technology modernization. This suggests CHROs are balancing operational demands with employee expectations, and retail’s priorities closely mirror all-industry benchmarks.

CHROs’ highest priorities to beat the competition

Retail
All industries
AI-driven hiring acceleration
31%
37%
Employee experience and well-being
30%
28%
Modernizing HR technology for scale and ROI
17%
17%

The majority of retail HR teams aren’t fully confident they’re preventing fraud

Concerns over hiring fraud and candidate trust are rising as technology becomes more deeply entrenched in hiring processes. Every industry we surveyed reported substantial gaps in hiring fraud risk mitigation—and this business-critical issue is already rising on the executive agenda.

Retail CHROs rate their level of confidence that their team is preventing hiring fraud

Fraud certainly isn’t a one-sided issue, and candidates are taking note of how and when AI appears to be getting in the way of their job search—instead of supporting it.

We also asked CHROs: Are you concerned that candidate trust in HR teams is decreasing, especially related to how employers are using AI?

Responses were fairly evenly divided. This split highlights the need to strengthen controls while preserving transparency and consistency.

Will trust between candidates and HR decrease as AI’s role in hiring increases?

36%of CHROs are moderately or extremely concerned about candidate trust erosion
26%are unsure
38%are only slightly or not at all concerned

Balance, pay, and growth continue to dominate retail EVPs

Retail CHROs identify a clear set of employee value propositions (EVPs) that most strongly influence attraction and retention. The data shows retail candidates remain most responsive to tangible benefits and flexibility.

Top retail EVPs
31%
Work-life balance and flexibility
27%
Competitive pay and benefits
27%
Career growth and development
10%
Inclusive culture
5%
Purpose-driven work

How to build trust and attract talent at scale

In retail, talent strategy and trust go hand in hand. The same elements that help attract candidates at scale, such as flexibility, speed, and clear communication, also shape whether candidates feel confident in the process and whether they accept offers.

Ask your team

  • How confident are we in preventing identity fraud and misrepresentation, and where are the weak points in verification or screening?
  • Which parts of our hiring process are most likely to erode trust, such as delays, poor communication, or unclear decisions?
  • Are our top EVPs clearly reflected in job postings, recruiter conversations, and hiring manager interviews?
  • Are we balancing speed with consistency, or are we creating avoidable variability across roles, regions, or stores?

Take this action

  • Prioritize updating fraud controls and identity verification protocols for both effectiveness and candidate clarity now.
  • Establish a clear ownership and reporting structure for AI-powered solutions. Close any gaps in basic automations quickly, then focus your team on securing cutting-edge advantages—such as accurate identity verification and efficient resume filtering.
  • Strengthen EVP alignment by ensuring flexibility, pay transparency, and growth pathways show up in the actual hiring process.
  • Standardize communication touchpoints about AI use in hiring, so candidates receive timely, consistent updates across high-volume hiring cycles.
3

AI fluency, quality of hire, and retention drive visibility with leadership

As expectations for HR’s strategic impact continue to rise, retail leaders are paying closer attention to how success is defined, measured, and communicated. In an industry where workforce stability directly affects customer experience and operational consistency, the KPIs that HR prioritizes can shape both business outcomes and leadership perception.

Employee experience and AI (again) need HR’s attention

What challenges do retail CHROs want to see their team solve to drive success in the next 2-3 years? Once again, we see a need to balance human-centered support with high-impact AI technology.

Hospitality HR leaders are also aligned around a set of performance metrics to evaluate HR’s impact in 2026—with an emphasis on measures that reflect hiring quality.

  • Quality of hire ranks as the #1 most important KPI for retail HR, followed closely by employee turnover rate, and employee engagement.

What is the most important question guiding retail HR’s 3-year strategic planning?

  • How can we enhance employee experience to boost retention and engagement?
  • How can we leverage AI to improve our recruitment processes?
  • How do we prepare for the future of work and evolving employee expectations?

Retail HR has mixed impact on executive strategy, signaling strong opportunities for growth

Retail leadership’s perceptions of HR are still evolving. Clearer measurement and consistent execution could help close the perception gap and enhance HR’s influence, like tying HR functions to OKRs like fraud prevention and AI-driven efficiency.

How executive retail leadership views HR

57%
HR is not seen as a strategic partner
16%
HR is a strategic partner without decision influence
27%
HR is a strategic leader with decision influence

How to transform HR into a strategic partner

Retail HR organizations are increasingly expected to demonstrate impact through business-relevant outcomes. KPI discipline, consistent execution, and clear communication can help HR leaders enhance credibility and influence.

Ask your team

  • What is the single most important question guiding our HR strategy over the next two to three years, and are we aligned around that north star?
  • Do our KPIs reflect business outcomes like hiring quality and retention, or legacy measures we have always tracked?
  • Which metrics resonate most with executive leadership in workforce discussions?
  • Where does leadership currently see HR as strategic versus operational, and why?
  • Are we consistently delivering on the measures we claim define success?

Take this action

  • Clarify the core planning priorities that anchor HR strategy.
  • Focus KPIs on outcomes that leadership values most, including quality of hire and retention.
  • Translate HR performance into executive-focused language that ties directly to business impact, and identify venues to increase visibility of impact with leadership (like ongoing performance review channels or quarterly business review sessions).
  • Review perception gaps between HR’s intended role and leadership’s lived experience.
  • Align measurement, execution, and communication so HR impact is visible and trusted.
4

How can retail leaders prepare for the future of HR?

Retail organizations face rising workforce pressure, changing skill demands, and uneven adoption of new technologies. As expectations of HR leadership expand, many retail leaders are assessing whether their teams are prepared not only for today’s hiring needs but also for the risks and complexity ahead.

Risk that might shape the future

Retail CHROs identify retention as the dominant risk heading into 2026, but also highlight compensation pressure and emerging skills gaps as growing challenges.

AI maturity
Workforce challenges

AI maturity across retail varies widely, with many organizations still challenged to develop capabilities beyond isolated use cases—though this closely mirrors our all industry benchmarks.

AI maturity levels in retail

Retail
All industries
Advanced: AI used in multiple workflows
18%
16%
Developing: AI used in select areas
34%
39%
Early stage: Pilot programs only
20%
21%
Exploring: Planning stages, no deployment
15%
13%
Not using AI today
11%
9%

How to build a future-ready workforce

Retail HR leaders recognize the risks ahead and are beginning to develop the capabilities needed for a more complex future workforce. To assess future readiness, CHROS should take an honest look at workforce risks, leadership gaps, and capability development. Once key issues are identified, clarity, consistency, and a deliberate investment in people will help to build a future-ready HR function.

Ask your team

  • Which workforce risks represent the biggest threat over the next few years?
  • How mature is our technology adoption across HR today, and what is blocking AI adoption? Is it a lack of access, decision overwhelm, insufficient training, or something else?
  • How are we developing future-ready leadership skills, and is that approach consistent across the organization? Where do we lack a defined roadmap for capability building?

Take this action

  • Address retention, compensation pressure, and skills gaps by linking success directly to operational outcomes.
  • Assess AI maturity realistically and identify where embedded capability is still missing. Embed skill-building into real HR work rather than relying solely on classroom training.
  • Establish a clear, repeatable approach to leadership readiness so progress is sustained.

Modernizing hiring for retail resilience in 2026 and beyond

Retail HR leaders are modernizing in response to constant hiring demand, evolving candidate expectations, and rising workforce risk. Our data shows clear alignment around goals such as improving hiring efficiency, strengthening retention, and measuring success through outcomes that matter most to the business.

At the same time, uneven maturity in technology adoption and persistent execution barriers highlight the importance of focusing on integration, leadership capability, and trust.

Retail organizations that modernize with intention, develop balanced HR leadership, and align strategy with operational realities will be best positioned to compete for talent and sustain resilience in 2026 and beyond.

How Checkr can help

Checkr is the data platform that powers safe and fair hiring decisions. Our modern background check technology integrates seamlessly with your hiring tech stack and provides transparency, automation, and trust at scale. 120,000+ customers use our solutions to modernize their screening process and deliver an outstanding candidate experience, without losing the human touch.

Ready to unlock retail HR’s strategic potential with better background checks?

Connect with our team to learn more and take action as a key problem-solver for your HR organization.

More resources for strategic thinkers

Survey methodology

All data found within this report is derived from a survey conducted online via a third-party survey platform. In total, 500 Chief Human Resources Officers (CHROs) working in the retail industry were surveyed over a two-week period spanning December 2025 and January 2026. All respondents were screened to confirm their senior HR leadership role. Participants were asked to answer all questions truthfully and to the best of their knowledge and abilities.

Disclaimer

The resources and information provided here are for educational and informational purposes only and do not constitute legal advice. Always consult your own counsel for up-to-date legal advice and guidance related to your practices, needs, and compliance with applicable laws.