Navigating the UK's ongoing staff turnover problem: How to keep your talent

The UK continues to grapple with significant staff turnover challenges, mirroring global trends that have put employee retention in the spotlight. With an average turnover rate of 21%, it's clear that the struggle is real across many sectors. But not all industries are created equal — hospitality and retail often face much steeper turnover rates compared to the more stable finance and legal sectors.

So, what’s driving this churn? The usual suspects include feeling unmotivated (15%), being overworked (14%), and dissatisfaction with management (14%). Pay dissatisfaction also looms large, especially as the cost of living continues to bite, putting additional pressure on employees' financial well-being.

For businesses, the cost of turnover is staggering. Replacing an employee earning less than £30,000 p.a. can set a company back 16% of that salary. The stakes are even higher for senior roles, where replacement costs can soar to an eye-watering 213% of the departing executive's salary. Add to that the fact that it takes an average of 40 days and £7,700 to fill a vacant position, and the urgency of robust retention strategies becomes painfully clear.

The bottom line? Employees are becoming more discerning, with the tight jobs market giving them the upper hand. Employers who want to attract and retain top talent need to double down on enhancing the employee experience. It's not just about perks; it’s about creating an environment where employees feel engaged, valued, and connected.

Engagement: The key to retention

A report by Achievers found that companies with highly engaged employees see a 25% to 59% decrease in turnover and 41% lower absenteeism. This shows just how crucial engagement is — not only for keeping your team intact but also for maintaining productivity.

Leaders should take the time to understand what makes their employees tick. This isn’t just a box-ticking exercise; it’s about genuinely enhancing their work experience. Employees want to know and feel that they belong, that they’re part of something bigger. This means clearly communicating your company’s purpose, vision, and values. It’s especially important for Millennials and Gen Z, who aren’t shy about job-hopping if they feel disconnected from your mission.

The power of communication

Communication is key. Employees need to know how their work contributes to the company’s success, giving them a sense of purpose and relevance. They want transparency about the company’s performance, even when the news isn’t great. This builds trust and confidence in leadership.

Creating a connected workplace, whether digital or physical, is also vital. This means fostering a culture of communication, collaboration, and knowledge sharing, and ensuring management is actively engaging with employees at all levels. It’s not just about strategic communication; it’s about using the right tone and channels to reach your team in a way that resonates with them.

Feedback and recognition:

More than just the odd "thank you"

Employees need to feel that their voices are heard, and their feedback is valued. According to Qualtrics, companies that effectively turn feedback into action boast an employee engagement rate of 80% — twice that of companies that don’t. Regular, meaningful feedback and recognition are also critical. The Achievers report highlights that companies with strong cultures of recognition are 2.5 times more likely to have high engagement rates.

Wellbeing: The non-negotiable factor

"Employees who believe that management is concerned about them as a whole person —not just an employee— are more productive, more satisfied, more fulfilled. Satisfied employees mean satisfied customers, which leads to profitability."

— Anne M. Mulcahy, former CEO of Xerox

Don’t underestimate the importance of employee wellbeing. Younger generations, in particular, are increasingly intolerant of employers who don’t prioritise this. A well-considered internal communications plan should address all these factors, evolving as needed to keep pace with changing work environments. Checking the health of your internal comms now could do wonders for your longer-term engagement scores and employee retention rates.

Equip your leaders to lead

"The only thing worse than training your employees and having them leave is not training them and having them stay."

— Zig Ziglar, American author, salesman, and motivational speaker

Finally, check in on your leaders’ communication skills. Are they equipped to have meaningful conversations with their teams? Do they have the tools to handle tough discussions? Many an excellent worker has been promoted into a managerial role, armed with great operational and organisational skills, but without the experience, knowledge or training to handle some of the tougher elements of communicating with their former peers. Don’t let this be the reason you lose good people.

In conclusion, losing top talent due to a lacklustre employee experience can create a vicious cycle of attrition, increased pressure on remaining staff, and declining satisfaction. Focus on feelings, wellbeing, engagement, and communication, and you’ll keep your team —and your business— thriving.