5 ways to boost employee retention

Nearly one in four workers in the UK are planning to leave their jobs within the next year.

Companies that buck this trend win on multiple front

• Save costs: Replacing employees is expensive, involving costs for advertising, recruiting, interviewing, and onboarding. In fact, it costs between 1.5 and 2 times an employee’s salary to replace them.
• Improve productivity: Long-term employees are more familiar with business processes and systems, so they need less supervision than new hires.
• Boost morale: High staff turnover can create uncertainty and lower enthusiasm among those who remain. Strong retention shows you offer a positive work environment, which in turn attracts talent.

Rising living costs and the quest for better work-life balance are part of the picture, but there’s another, often underestimated driver behind this “Great Resignation”

More than ever, people want to work for organisations that reflect their values. In fact, 20% of UK office workers would turn down a job if environmental, social, and governance (ESG) factors were lacking.

This trend, often called “climate quitting”, presents a huge opportunity for employers. Offering benefits that support a more purposeful, sustainable lifestyle can help you attract and retain the kind of talent that’s committed, engaged, and value-driven. Gone are the days of scattering bean bags around your office or offering free snacks (although we wouldn’t say no). It’s about creating a deep connection with your people, so they feel like they belong.

Here are five ways to achieve this.

Businesses with a recognition culture have a 31% lower employee turnover rate than those who don't. Employees can be rewarded for:

• Achieving project milestones: Recognise and reward employees who consistently deliver on key objectives, driving progress and keeping your business on track.
• Smashing performance metrics: Celebrate those who go above and beyond, meeting or exceeding KPIs that contribute directly to company success.
• Driving sustainability forwards: Encourage participation in initiatives that align with your organisation’s net zero goals, creating a shared sense of purpose and impact.

If your team isn’t clear on what your company stands for, you could be missing a powerful opportunity to boost engagement, motivation, and retention. When employees understand your mission, and see how their work contributes to it, they're far more likely to feel connected, inspired, and proud of what they do.

Here’s how you can bring your purpose to life:

• Set the tone from day one: Share a clear and compelling overview of your company’s mission during onboarding.
• Create meaningful experiences: Run regular volunteering days to help employees engage with causes that align with your values.
• Keep the conversation going: Host lunch-and-learn sessions to showcase your impact, celebrate progress, and invite honest feedback.

When employees see opportunities to grow and develop within your organisation, they’re far more likely to stay. In fact, research shows that 37% of Gen-Z employees are considering leaving their jobs because of a lack of learning opportunities.

That’s why it’s so important to invest in your team’s development. You could do this through:

• Training programmes: Give employees the tools to build new skills and stay competitive.
• Leadership development: Prepare high-potential team members to step into future leadership roles with confidence.
• Subsidised education: Support your employees in studying for qualifications that benefit both their career and your business.

A strong work-life balance is important for employee satisfaction, productivity, and retention. By offering flexible work arrangements, businesses can create a positive work environment that attracts and retains top talent. Here are a few ideas:

• Remote/hybrid work: If possible, allow employees to work remotely sometimes, reducing commute time and increasing flexibility.
• Paid time off: Give generous holiday, sick leave, and personal leave policies to allow employees to rest and recharge.
• Wellness programmes: Offer gym memberships or mindfulness apps to promote physical and mental wellbeing.

More than half of employees (59%) are more likely to join or stay with an organisation if they have a comprehensive package of meaningful benefits.

Such as an EV salary sacrifice scheme. Employees "sacrifice" a portion of their monthly gross income (before tax) in return for an EV. They save up to 40% while reducing their carbon footprint.

With some schemes, such as the one we run, your employees get the whole package included: the car, maintenance, servicing, and insurance as standard. It’s super easy to set up and operate. And best of all, it costs your business nothing.

Keep your employees happy with Octopus EV’s salary sacrifice scheme

If you want to improve your retention rates and reduce your carbon footprint, now’s the time to invest in more sustainable employee benefits.

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