The phrase “Great Resignation” has become a defining characteristic of the post-pandemic labor market, and its effects have been felt keenly across the United Kingdom. While the term may suggest a mass, impulsive exodus, it’s more accurately a seismic shift in employee priorities and expectations. Workers are no longer content with simply having a job; they are demanding more from their employers in terms of purpose, flexibility, and overall well-being.
For businesses in the UK, this isn’t just a recruitment challenge—it’s a retention crisis. The cost of losing an employee is substantial, from the direct expenses of recruitment and onboarding to the less tangible but equally damaging loss of productivity, morale, and institutional knowledge. As the job market remains dynamic, companies that fail to address the root causes of this movement risk falling behind and losing their most valuable assets: their people.
This article explores the key drivers behind the Great Resignation in the UK and provides a comprehensive guide for companies on what they must do to retain their best talent.
To effectively combat the retention crisis, businesses must first understand why employees are leaving. The reasons are multifaceted and often deeply personal.
1. The Great Re-evaluation: For many, the lockdown periods provided an unprecedented opportunity for introspection. Millions of people had more time to reflect on their careers and ask fundamental questions: Is my work fulfilling? Am I happy? Is this the right path for me? This period of reflection led to a collective re-evaluation of what constitutes a "good job," with work-life balance often emerging as a top priority over a bigger salary.
2. Demand for Genuine Flexibility: The forced pivot to remote working proved to both employers and employees that productivity isn't tied to a physical office. As a result, a majority of UK workers now expect some form of hybrid or remote work model. Companies that insist on a full-time return to the office without a compelling reason are struggling to retain employees who have grown to value the flexibility and time savings of home working.
3. The Rising Cost of Living vs. Stagnant Wages: The UK is currently facing a significant cost-of-living crisis. With inflation soaring, employees are increasingly looking for higher pay to meet their expenses. In a tight labor market, switching jobs is often the fastest and most effective way to secure a significant pay rise. Companies that offer only marginal pay increases are effectively encouraging their staff to look elsewhere.
4. Burnout and a Lack of Mental Health Support: The pressure of the pandemic, coupled with the "always-on" culture of remote work, has led to a surge in burnout. Many employees feel their mental well-being is not adequately supported by their employers. They are seeking out companies that not only acknowledge the importance of mental health but also provide tangible support through wellness programs, flexible working hours, and a culture that prioritises well-being over constant hustle.
5. Lack of Career Progression and Development: Employees want to feel that their career is moving forward. If they don't see a clear path for growth or feel their skills are stagnating, they will look for opportunities elsewhere. This is particularly true for younger generations who are highly motivated by learning and development.
Losing an employee is not just an inconvenience; it’s a major business expense. The financial and operational impact can be severe.
Financial Costs: Recruiting, interviewing, and onboarding a new employee can cost thousands of pounds. This includes advertising the role, time spent by hiring managers, and the cost of training a new starter to reach full productivity.
Loss of Productivity and Momentum: A vacant role disrupts team dynamics and places a heavier workload on existing employees, which can lead to further burnout. It takes time for a new employee to get up to speed, and in that time, projects can stall and deadlines can be missed.
Loss of Institutional Knowledge: When a long-serving employee leaves, they take with them a wealth of knowledge about company processes, clients, and history. This knowledge is often irreplaceable and can take months or even years for a new hire to acquire.
Impact on Morale: High employee turnover can be contagious. It signals instability and can make remaining employees feel undervalued, prompting them to start looking for a new role themselves.
Retaining talent in the current climate requires more than just reactive measures. It demands a proactive, holistic approach to the employee experience. Here’s what companies should be doing right now.
While competitive pay is essential, it’s only one part of the equation. Companies must think more broadly about what they offer.
Compensation Transparency: Implement clear, transparent pay scales for roles. This builds trust and shows employees that their compensation is fair and not subject to arbitrary decisions.
Enhanced Benefits: Go beyond standard pension contributions. Consider offering private medical insurance, increased holiday allowance, or even a four-day work week. These benefits can significantly improve an employee's quality of life and sense of value.
Performance-Related Bonuses: Implement a fair and clear bonus structure that rewards exceptional performance, giving employees a tangible reason to stay and excel.
Flexibility is no longer a perk—it’s an expectation. To retain talent, companies must move past token gestures and build a culture of genuine trust and autonomy.
Hybrid and Remote-First Models: For roles that don’t require a physical presence, make hybrid or remote work the default. Give employees the autonomy to choose where and how they work best.
Flexible Hours: Beyond location, offer flexible working hours that allow employees to manage personal commitments, such as school pickups or appointments, without feeling guilty or needing to use up holiday time.
Measure Output, Not Presence: Shift the focus from hours worked and "presenteeism" to actual outcomes and results. This empowers employees and builds a culture of trust.
Employees want to feel that their careers are progressing. Companies must provide clear pathways and opportunities for them to grow.
Create Clear Career Paths: Work with employees to develop clear, structured career paths that outline the skills and experience needed to advance within the company.
Upskilling and Reskilling: Offer a budget for training, online courses, and professional certifications. This shows a commitment to their long-term success and helps the company remain competitive.
Mentorship Programs: Implement mentorship programs that pair junior employees with senior leaders. This not only aids professional development but also strengthens company culture and internal networks.
Employees want to feel seen, heard, and valued. A positive company culture is a powerful tool for retention.
Regular, Meaningful Feedback: Move beyond the annual performance review. Implement a culture of continuous feedback, where managers regularly check in with employees to provide constructive criticism and praise.
Recognise and Reward Success: A simple "thank you" can go a long way. Publicly recognise team and individual achievements. This could be through internal newsletters, company-wide meetings, or even small, tangible rewards.
Promote Psychological Safety: Create an environment where employees feel safe to speak up, share ideas, and admit mistakes without fear of retribution. This is crucial for fostering innovation and honest communication.
In a post-pandemic world, mental health is a critical concern. Companies must treat it as a fundamental part of their employee strategy.
Comprehensive Mental Health Support: Offer access to counseling services, employee assistance programs (EAPs), or mental health apps.
Encourage Breaks and Time Off: Lead by example by encouraging employees to take their full holiday allowance and disconnect from work. Implement policies like "no-email Fridays" or "meeting-free afternoons."
Open Dialogue: Create an environment where managers are trained to spot signs of burnout and are comfortable having open, non-judgmental conversations about mental health.
Ultimately, these strategies will only be successful if they are championed by leadership. Leaders must not only communicate these changes but also embody them. An empathetic, transparent, and supportive leader is the greatest retention tool a company can have. They set the tone for the entire organisation and are the first line of defense against the retention crisis.
By listening to their employees, being adaptable, and prioritising people over profits, UK businesses can turn the challenge of the Great Resignation into an opportunity to build a stronger, more resilient, and more purpose-driven workplace.
