By Nic Neal, People & Culture Expert at allpoints
It’s January, and we’re just about getting back into the swing of things after a much-needed break and one too many mince pies. For many of us, the Christmas break is the one time we can truly switch off from projects, deadlines, and overflowing inboxes. But with the slower pace comes more time to think—and we may find ourselves wondering if we’re truly happy with our work and careers.
As well as being the month of #NewYearNewMe, January is also often the month with the highest turnover of the year. Sadly, the Great Resignation isn’t a thing of the past just yet.
Retention was one of the biggest challenges facing organisations and HR leaders in 2024, with 56% of companies experiencing increasing difficulties in this area (CIPD). The trend isn’t slowing down anytime soon either; according to EY’s Work Reimagined Survey, 38% of employees are likely to leave their jobs in 2025.
Why Are Employees Leaving?
What’s driving employees to reevaluate their relationship with their employers and draft resignation letters? While there are many reasons why people decide to move on, a recent survey by McKinsey & Co found that not feeling valued and lacking a sense of belonging were the main culprits.
When 70% of employees say their sense of purpose is largely defined by their work, it’s no surprise they’re leaving in search of a company that better aligns with their personal values.
Tackling Retention: What Really Works
To address the retention challenge, senior leaders need to understand what truly matters to their people. Financial incentives alone won’t cut it anymore. Total reward strategies that go beyond the paycheck and incorporate both tangible and intangible benefits can create a more holistic employee experience—and may just help organisations keep their teams motivated and loyal.
Here are six areas where organisations can make a meaningful impact:
1. Learning, Development, and Progression Opportunities
Employees want to grow, learn, and access clear progression opportunities. Providing structured learning paths and demonstrating a commitment to personal development keeps people engaged and excited about their futures. A Culture Amp study found that employees with access to learning and development opportunities were 21% more engaged than those without.
2. Flexibility and Work-Life Balance
2024 saw many companies, like Barclays and Amazon, push for full-time office returns, yet flexibility remains a top priority for employees. According to EY’s Work Reimagined Survey, 31% of employees rank flexible work schedules as crucial. Balancing human connection with hybrid work options is key to creating an environment where employees thrive.
3. Positive Workplace Culture
A strong workplace culture isn’t a luxury—it’s essential. Employees need to feel a sense of belonging and alignment with their organisation’s values and purpose. McKinsey & Company research highlights that people are far more likely to stay in inclusive, supportive environments that foster genuine connections and mutual respect.
4. Recognition and Feedback
Recognition is a powerful motivator. Employees who feel acknowledged and appreciated for their contributions are far more likely to remain committed. Programmes for peer recognition, as well as open channels for two-way feedback, cultivate a culture of achievement and loyalty.
5. Effective Leadership and Communication
Empathetic, communicative leaders are vital to building trust and fostering team loyalty. Employees who feel supported, coached, and mentored are significantly more likely to stay. Leaders who prioritise their teams’ well-being and growth create a ripple effect of positivity and commitment.
6. Competitive Compensation
While not the only motivator, fair compensation remains essential. Amid a continuing cost-of-living crisis, employees expect competitive and transparent pay packages. Regularly benchmarking salaries and reviewing pay structures ensures employers remain competitive and equitable.
Listening to Employees: The Key to Retention
Crafting an effective total rewards strategy is a powerful way to boost retention, but there’s no one-size-fits-all solution. Every organisation faces unique challenges, and the key lies in truly listening to employees.
Providing multiple channels for honest, often anonymous, feedback—such as engagement surveys and exit interviews—offers invaluable insights. Acting on this feedback sends a clear message: employees’ voices matter, and their experiences are valued.
In 2025, let’s commit to creating workplaces where people feel seen, heard, and valued. When employees feel a sense of purpose and connection, retention is no longer a challenge—it becomes a natural outcome.
Sources:
- People Management: Retention Challenges
- EY’s Work Reimagined Survey
- McKinsey UK Insights
- CultureAmp: Learning & Development Study
- CIPHR: Employee Pay Expectations
- Forbes: Great Resignation Trends
About Nic Neal
Nic Neal is an expert advisor at AllPoints, specialising in People and Culture consultancy. With a wealth of experience in helping organisations optimise their approach to workplace culture, Nic partners with businesses to align their people strategies with overall performance goals.
Passionate about creating meaningful workplace experiences, Nic helps organisations define and implement core company values, streamline performance and pay review processes, enhance internal communications, and develop forward-thinking HR policies. Her approach empowers businesses to listen deeply to their people, driving inspired action and fostering environments where talent thrives.