Introduction: The Retail and Wholesale Turnover Challenge

The retail and wholesale industry is one of the most dynamic and fast-paced sectors in the U.S. economy. However, it also faces one of the highest employee turnover rates, reaching 24.9% in 2024—the highest among all industries. Whether due to seasonal hiring, part-time positions, or shifting workforce trends, retailers constantly onboard and offboard employees, making HR compliance a challenge.

One crucial aspect of HR compliance is Form I-9 verification, which ensures that all employees are legally authorized to work in the U.S. High turnover increases the risk of I-9 errors, non-compliance, and potential penalties. In this article, we explore best practices for I-9 compliance in the retail and wholesale industry, along with how technology can simplify the process.

Understanding the Impact of High Turnover in Retail & Wholesale

Turnover in retail and wholesale is driven by several factors:

• Seasonal hiring: Many retailers experience workforce fluctuations during peak seasons (holidays, back-to-school, etc.), leading to rushed hiring and onboarding.
• Low-wage jobs and career transitions: Many retail jobs are entry-level, with employees frequently moving to new opportunities.
• Work-life balance concerns: The irregular hours, weekend shifts, and high-pressure environment contribute to frequent resignations.
• Lack of training and career growth opportunities: Many employees leave due to limited advancement potential.

For HR teams, high turnover creates an administrative burden—requiring constant hiring, onboarding, and compliance with I-9 regulations. Errors in the verification process can lead to hefty fines, increased audit risks, and operational disruptions.

According to U.S. Immigration and Customs Enforcement (ICE), I-9 violations can result in increased fines ranging from $288 to $2,861 per form. Given the high volume of hires in retail, ensuring compliance is critical to avoiding unnecessary legal and financial risks.

I-9 Compliance Strategies for Retail and Wholesale Employers

  1. Timely Completion of Form I-9

• Employees must complete Section 1 on their first day of work.
• Employers must verify documents and complete Section 2 within three business days of the employee's start date.
• Late or incomplete forms can lead to non-compliance penalties.
  
  

  2. Regular Training for HR and Hiring Managers

• Frequent turnover means many managers and HR staff may not be fully trained in I-9 best practices.
• Providing ongoing training ensures that all team members are up-to-date on compliance regulations.
  
  

  3. Conduct Internal Audits

• Periodic self-audits help identify and correct I-9 errors before ICE inspections occur.
• Reviewing and updating existing I-9 forms ensures long-term compliance.
  
  

  4. Leverage E-Verify

• E-Verify is a government tool that allows employers to confirm an employee’s work eligibility status electronically.
• Many large retailers already use E-Verify to prevent document fraud and streamline the hiring process.
  
  

  5. Digitize and Automate I-9 Compliance

• Many retailers are shifting to electronic I-9 systems to minimize errors and ensure compliance.
• Digital tools offer document tracking, automated reminders, and centralized record-keeping.

Introducing Clear I-9: A Smarter Way to Handle I-9 Compliance in Retail

Managing I-9 compliance in a high-turnover industry is time-consuming and risky. Clear I-9 simplifies the process with automated workflows, real-time validation, and secure document storage, ensuring compliance without administrative hassle.

Key Benefits of Clear I-9: 

• Automated I-9 completion to reduce human errors
• Real-time validation to flag issues before they become compliance risks
• Live I-9 Video Verifications for remote or offsite employees, ensuring faster and compliant onboarding
• Secure cloud storage for easy access and audits
• Regulatory updates to keep your business ahead of compliance changes

Don’t let I-9 compliance slow down your hiring process. Schedule a demo today and ensure seamless compliance for your retail workforce.