Why Employees Stay: The Workplace Priorities

It is easy to think that, as an employer, if you pay a fair wage and the workplace culture is generally considered to be ‘good’ then people will simply turn up to work each day, clock off, and then do it all over again. The reality is that a combination of labour market shifts, ongoing socio-economic pressures and rising employment costs has kept employee turnover firmly at the top of HR’s agenda. Despite employers investing in recruitment and retention initiatives, there doesn’t seem to be any kind of panacea on the horizon to help companies with employee churn, lost productivity and rising hiring costs.

Recent data from the CIPD shows that around 34% of UK workers change jobs or leave the workforce each year, while the average cost of hiring a new employee now sits at more than £6,000 before onboarding, training and lost productivity are factored in.

Employers are exploring increasingly diverse ways to solve the retention issue, which has seen employee benefits surge in popularity. According to SMRM, a robust benefit strategy is one of the key ways organisations can support their people and improve productivity, reduce churn and help improve the employee experience.

So, what makes employees stay?

One of the biggest factors is feeling valued. We know that employees who feel recognised for their contribution, listened to and supported are far more likely to remain loyal to an organisation. And it is a common misconception that recognition always needs to be financial. In fact, employees increasingly expect employers to demonstrate appreciation through meaningful rewards, wellbeing support and positive workplace experiences, and this is where things really start to move the needle.

Benefits design

Always a popular option to bolster retention figures, employee benefits have become increasingly complex over the last two decades because the workforce is more diverse in needs, life stages, and working patterns than at any previous point in recent history. The risk, however, is not just cost, but relevance. A benefits programme that employees do not understand, do not trust, and do not use cannot drive retention. The SHRM report highlights benefits cost and design complexity and caregiving and wellbeing pressures as key workplace issues for 2026.

Financial security

Money is at the root of most issues, so it is no surprise that financial security continues to make a significant impact on retention, particularly with ongoing cost-of-living pressures, competitive pay and valuable employee benefits. Many employees are actively seeking employers who offer packages and solutions that will help them stretch their income further and support their financial wellbeing.

Flexibility

Another key priority; the work/life balance trend shows no sign of abating. Whether it’s hybrid working, flexible hours or greater autonomy, we are seeing that employees increasingly want workplaces that help them balance work and personal commitments.

Career development

This is equally important as a marker of a strong workplace culture. Internal mobility initiatives are always going to be of interest to the workforce, and employees are more likely to stay when they can see a clear path for growth, access learning opportunities and feel invested in by their employer.

Culture and belonging

Workplace culture matters. Inclusive leadership, strong communication, wellbeing support and a genuine sense of belonging all contribute to creating an environment where people want to build long-term careers. Studies from the CIPD continue to highlight flexibility, fair treatment, wellbeing and development opportunities as key drivers of employee retention.

Retention isn’t some black art, and keeping your best people shouldn’t cost the earth. It starts with showing them they are valued, supported and able to thrive. Those businesses that invest in these fundamentals are going to be better able to retain their talent in an increasingly competitive labour market.

Find out how My Staff Shop’s employee benefits platform can become one of your strongest retention tools, helping employees save money, access meaningful rewards and feel genuinely supported throughout their employee journey.

Get in touch with our team to see how we can partner together to improve your workplace culture and bolster retention.