Workers retiring, insufficient training to put pressure on retail workforce
A major shortage of workers could be looming, partially due to lack of training among younger generations.
That’s according to new survey data from frontline employee app Flip, which reveals that roughly six-in-10 (59%) of frontline workers over the age of 55 are planning to leave the workforce in the next five years. Almost three-quarters (72%) of managers across retail and manufacturing are not confident their companies will be able to retain the knowledge and expertise lost when experienced workers retire.
At the same time, younger workers feel undervalued and disconnected, with nearly half (48%) of Gen Z employees considering leaving frontline industries entirely due to poor onboarding, lack of training, and limited career progression opportunities.
As many workers are set to soon retire, insufficient training is having an impact on productivity. The overwhelming majority (90%) of frontline managers miss performance targets each year due to a lack of skills on their team, while 96% report skill gaps in their workplace. Training failures are driving talent away, with nearly a third (30%) of frontline workers saying their company lacks the right technology to support new hires.
Nearly nine-in-10 (89%) managers say Gen Z workers lack the technical skills required. Meanwhile, Gen Z feels undervalued, with 50% of employees in the age group believing their work is overlooked because of their age.
[READ MORE: Workers say hostile customer interactions more common; want better training]
"Industries that power our economies are facing a critical skills cliff edge," said Benedikt Brand, co-founder and CEO of Flip. "In frontline sectors, expertise is often passed down verbally or stored on paper – unlike office roles, where digital records create a natural knowledge trail. When experienced workers retire, this knowledge risks disappearing entirely. Businesses must act now to capture and digitize critical expertise, ensuring a smooth transfer to the next generation. Without it, productivity will stall, and these industries will struggle to stay competitive."
Flip partnered with research firm Workplace Intelligence to survey 1,500 global frontline managers and employees in the United States, U.K. and Germany in January 2025.
