Losing employees is a concern for many business owners. According to research, employers find the loss of team members one of their most challenging situations. Some told researchers it was ‘a nightmare’.

Their biggest fear is losing the best members of their team, the report finds. But it states with rising costs of living, more employees are now looking for better paid jobs. And this is at a time when business owners can’t offer more money due to spiralling costs. 

Close Brothers Asset Finance reports that 71% of businesses are affected by rising operational costs. And that’s before taxes and National Insurance contributions increase.

Facing talent retention issues is a double whammy for employers. As well as the chance of losing key members of the team, there are big financial issues in recruiting new employees. It costs on average 30% of an employee’s salary to find new recruits. Retaining employees is, therefore, essential for employers.

More people searching for new jobs

So, the latest news that almost one in four people are planning on quitting their jobs in 2025 will be worrying for business owners. 

The findings from a study show that 23% of UK workers want to leave their jobs this year. That’s up 3% on the previous year. And a further 13% say they won’t be working for their current employer in 2026. 

So how do you stop losing employees?

4 ways to stop losing employees

If you’re thinking the only way to retain employees is to pay more, you’d be surprised. Studies show that having a culture that leads to employees feeling happy and feel valued is more important than their salary. Of course, you have to be realistic about fair pay – but the research confirms financial rewards aren’t the only aspect of having happy workers. Getting the complete package right will help you retain employees.

So, what else can you do?

1. Value your employees

More than 40% of employees don’t feel valued by their employer. Unhappy workers cost businesses billions through lower productivity and recruitment when they need replacing. If your business culture is wrong, it creates staff churn. That means you’re spending excess amounts on replacing staff.

Making employees feel like they’re part of the team reassures them. They feel that their thoughts and ideas are valuable to the wider business. Simply meeting employees at set times in the year for reviews where they have no input has the opposite effect.

Also, recognise an employee when they have achieved success. Celebrating with them is clear way of showing a team member that they are part of a team.

2. Build a strong culture

A proactive, people-centred approach will help improve your business’s culture. That means your employees don’t just feel like a small, unimportant cog.

If your business has a culture that gives employees a feeling of connection to your business, they will feel engaged. And that will mean they are four times as likely to stay with your business..

More importantly, they are 43% less likely to even consider another job. A study last year revealed that employees would happily leave their current job for a lower paid one if the business was supportive and cared for its team. We’re not saying you need to pay the least you can! But it shows that wages don’t always have to be the highest to recruit the best talent.

Rewarding people who act on your company’s values is one way of instilling the importance of the culture of a business. And it also leads to a more rewarding place to work. We’re passionate about culture and how it can drive your business forward.

3. Focus on well-being

More employees than ever say they’re suffering from burnout. With increasing demands and a shrinking workforce, businesses are expecting a lot from their staff members. But focusing on the well-being of your employees is a wise investment.

If you support your employees’ mental and physical health, they will feel more valued. A wellness programme that highlights that their health is valued will help.

Also, flexible hours of working can help employees, especially those who need to juggle care arrangements. That simple approach can help an employee feel respected – and they’ll pay that back to your business.

Look for training and courses that teach managers how to identify signs of burnout. And help them know how to reach out to those that are under the strain of stress.

Asking employees for feedback will also help you understand what’s causing burnout so that you can deal with it.

4. Enable career progression

The chance to learn, grow and progress is the number one driver of a great work culture. According to a report by LinkedIn, employees who are given the opportunity to develop feel cared for. And by feeling valued they are less likely to quit.

The study states more than 60% of employees leave their jobs when they have no way to advance their career. So, helping career growth is essential for a business that wants to retain its best talent.

But how do you do that? Again, it’s back to looking at the culture of your business. Do you see employees as a vital part of your business and its future or just people who have work to do?

If you would like to know more about changing your organisation’s culture and implementing changes, contact our team today.