26 Jun 2026

How to retain your employees in 2026

UK employers are facing higher costs, a shortage of skilled workers, rapid change driven by AI, and new employee expectations. That’s why holding on to experienced staff is now just as important as hiring new people.

Recent data from Wellhub’s Return on Wellbeing Report shows that 88% of organisations see retaining top performers as a main goal for 2026.

This focus is largely driven by the heavy pressure HR teams are under. Hiring remains a major challenge: 32% of HR professionals consider it a top concern, while 28% struggle to retain top talent.

The financial impact of employee turnover adds even more urgency. In the UK, around 34% of workers leave their jobs each year. For employers, replacing someone who earns £25,000 or more can cost approximately £30,614, including hiring, training, and lost productivity.

At the same time, HR leaders are facing a new layer of risk: the growing competition for AI skills. In fact, 62% are concerned about losing employees with critical capabilities such as prompt design and workflow automation.

The false perception of engagement

Lower turnover might seem like good news, but UK market data shows another side.

After a big hiring wave that peaked at almost 1.3 million job openings in mid-2022, vacancies fell to 718,000 by mid-2025. This drop led to the "Big Stay," in which people remain in their jobs because the job market is slow, not because they are truly motivated.

This “no-hire, no-fire” situation can make it seem like employees are loyal, but many actually feel stuck. Even if staff numbers stay the same, this stability can hide a bigger problem: people stay because they have few options, not because they are motivated or committed.

European workforce data shows the scale of the problem. While 57% of workers felt good about the job market, only 12% felt engaged at work, and 15% were actively disengaged.

Data shows that from 2022 to mid-2025, 2.4% of users with CVs on the site changed jobs each month, and 63% of them moved into completely new fields. This means people are not just switching companies - they are changing careers.

When employees stay only for financial reasons but feel overworked or disconnected, productivity drops, trust fades, and people put in less extra effort.

What drives long-term retention?

To keep employees for the long term, companies need to meet a range of employee needs:

Career growth: Ambitious employees want clear, practical ways to move forward. People who stay at one company usually do so because their employers help them grow, not just because they have been there a long time. This matters even more for Gen Z, who care a lot about purpose, making a difference, and having chances to advance over five years.
Balance and wellbeing over salary: Work-life balance is now the top career priority for people of all ages. Wellhub’s Work-Life Wellness report found that 64% of employees have focused more on their wellbeing over the past five years, while 86% think workplace wellbeing is just as important as their pay.
Meaningful connection: Employees want to feel seen and appreciated. When a company has a culture of trust and recognition, people are less likely to leave because it means giving up a sense of belonging. In fact, 94% of Gen Z employees say that feeling heard and valued is their main reason for staying.
Job security and relevance: Real job security comes from knowing your skills are still needed. People in high-demand areas like software development and healthcare tend to stay longer, but they will still move to another company if it offers a better culture or working conditions.

Strategic role of wellness programmes

Having a strong corporate wellness strategy is now essential for retaining top talent. Around the world, 85% of HR leaders say wellness programmes are key to keeping their best people, and 83% say they also help boost engagement.

This is because a comprehensive approach provides top performers with the support they need to avoid burnout and maintain focus, energy, and mental strength. However, isolated or underused benefits are unlikely to make a real difference. To have a lasting impact, companies need to support mental health, sleep, nutrition, and financial wellbeing as part of one connected strategy.

The business case is just as strong. Nine out of every 10 organisations see better productivity and engagement through wellness initiatives, 87% report lower healthcare costs, and 95% of companies that measure ROI see positive financial returns. For HR leaders, this makes a trusted, measurable wellness culture one of the clearest ways to retain talented people.