H&M named one of the UK’s best employers, according to report

At a moment when the UK retail sector is still grappling with labour shortages, subdued growth and the long tail of Brexit, H&M, has been recognised as one of the country’s most attractive employers.

The Swedish fashion group has been named to the Financial Times UK’s Best Employers 2026 list for the second consecutive year, a distinction that lands at a time when many retailers are struggling to recruit, retain and motivate staff in a tightened labour market.

Compiled by the Financial Times in partnership with Statista, the annual ranking is based on an independent survey of more than 20,000 UK employees and over 200,000 workplace evaluations. Eligible companies must employ at least 250 people in the UK and are assessed on factors including working conditions, pay, career development, and overall employer reputation — both within and beyond their sector.

A people-first strategy

H&M’s inclusion for a second year running points to a deliberate, long-term investment in workplace culture at a time when retail jobs have become harder to fill. Since Brexit, UK retail has seen a sharp decline in EU nationals working in shops, warehouses and logistics, roles that were historically dependent on free movement of labour. According to industry bodies, the sector lost hundreds of thousands of EU workers between 2016 and the early 2020s, exacerbating staffing gaps already widened by the pandemic.

Against this backdrop, H&M has doubled down on internal development, diversity and inclusion initiatives, and wellbeing programmes, positioning itself as an employer that offers more than just entry-level retail work. Flexible scheduling, structured training pathways and internal mobility have become central to its UK people strategy.

Retail resilience

The recognition also arrives amid a mixed economic picture for the UK. Citing Financial Times reporting, growth in activity across manufacturing and services edged up in February to its highest level since April 2024, according to the S&P Global Flash UK PMI composite output index. However, this modest uptick follows official data showing the economy grew by just 0.1 percent in both the third and fourth quarters of 2025.

Meanwhile, broader employment pressures in the UK labour market underscore the challenges facing companies trying to hire. Official data from the Office for National Statistics show the UK unemployment rate rose to 5.2 percent in the three months to December 2025, its highest level in several years , as overall joblessness increased. At the same time, youth unemployment, particularly among 16- to 24-year-olds, climbed markedly, reflecting a tougher entry-level jobs market and heightened competition for roles.

Employer branding as competitive advantage

Employer rankings are no longer a “nice to have,” they are a strategic asset. As competition for reliable staff intensifies, particularly in urban centres and tourist-heavy locations, retailers with credible employer brands are better placed to stabilise operations and maintain service standards.