STRATEGIES TO KEEP TOP TALENT IN YOUR BUSINESS Creating and promoting a powerful Employee Value Proposition (EVP)

Staff retention has become a crucial aspect of business strategy across the UK, especially in an environment marked by rising competition, labour shortages and evolving workplace expectations. High turnover rates not only cost businesses in terms of recruitment and training but also lead to losses in productivity, knowledge, and overall morale. Retaining top talent is no longer a reactive response but a proactive necessity for long-term success.

We will delve into why staff retention is vital for businesses, the main challenges companies face, and practical strategies for reducing turnover and improving employee loyalty.

January 2nd, Merseyside. Business leaders from high-rise offices to industrial estates share a common goal for 2024 – growth. Growth which will require new talent to fuel it.

Why Staff Retention Matters

If those leaders believe 2024 will be better for hiring than the last few years, then I have some bad news because the UK market is facing three long term challenges:

The UK labour market is undergoing significant changes, influenced by a mix of demographic shifts, post-pandemic work expectations, and Brexit’s impact on immigration.

Here are key reasons why retaining staff is essential: champion diversity and inclusion. Organisations that fail to embrace D&I initiatives may struggle to retain staff who want to feel included and valued.

1. Continuity and Stability: Long-serving employees often have time served knowledge and established relationships that are vital for operational stability.

1. Demographics – McKinsey predicts a shortage of 3 million young people by 2030 to replace retirees. This issue is already affecting many firms and it will get worse.

Kerry Swift

5. Prioritising Wellbeing

Kerry Swift

2. Employee Morale: Frequent departures can demoralise remaining staff, who may feel insecure about their jobs or become overwhelmed by the added responsibilities.

3. Brand Reputation: Companies known for high turnover may find it difficult to attract new talent. A strong retention strategy helps build a positive employer brand.

2. Fear – The mixed economic outlook for 2024 makes candidates hesitant to change jobs, preferring the safety of familiar roles. 3. Expectations – Millennials and Gen Z express growing disillusionment about matching their parents’ economic success. A significant minority choose to quite quit and live their life instead.

These challenges shrink the pool of quality talent for your firm and make it harder to attract the talent you need to grow.

Key Challenges in Staff Retention

However, it’s not all doom and gloom.

1. Employee Wellbeing: The pandemic has brought employee wellbeing to the forefront of organisational culture. Failing to address this could lead to disengagement, driving high turnover.

Research on what motivates people to move, or stay has boomed in the last two years. Firms like McKinsey, Boston Consulting Group, The REC, and The Big 4 have all done huge research projects on the subject.

2. Work-Life Balance: Employees are demanding more flexible working arrangements. The need for autonomy has become a top priority. A Forbes Advisor Survey shows that 78% of remote or hybrid workers reported an improved work life balance.

Their insights reveal all firms from small enterprises to international conglomerates can make some relatively simple changes to drastically improve their talent attraction.

3. Career Progression: A study by Amazon and Workplace Intelligence reported that 74% of Gen Z and Millennial employees cite a lack of career mobility and skills development as their impetus for their plans to resign.

First, the bad news, you do need to pay market rate. Candidates fear of change and the range of options before them means the best won’t move for anything less.

Next, the good news - money alone won’t win.

4. Diversity and Inclusion: Employees increasingly expect workplaces to an SME to create and use an EVP because they have fewer layers of management to deploy it through.

The research consistently shows that most people are motivated by things other than money when selecting their next move. Once the salary is ‘enough’ then they prioritise other things.

Supporting the mental health and wellbeing of employees is crucial for retention, particularly in the UK where the workplace is becoming more focused on the holistic wellbeing of staff. Employers can offer wellness programs, mental health days, and access to counselling services to show they care about their employees’ overall wellbeing.

Effective Strategies for Retaining Staff

1. Fostering a Positive Culture

So, to compete for talent you must provide a compelling answer to a simple question“What will it be like to work for you?”

A strong company culture is the bedrock of employee loyalty. When employees feel respected, valued, and part of something bigger, they are less likely to look for opportunities elsewhere.

2. Offering Competitive Salaries and Benefits

The evidence shows people are more interested in your organisation, than the role. Let me give you some examples of what they want to know.

Practical ways to prioritise mental health:

Working with firms to implement an EVP and speaking to even more HR leaders who implemented their own, the results are always the same. More retention. Higher quality candidates. Better cultural fit.

• Offering Employee Assistance Programs (EAPs) that provide confidential counselling services.

• Providing flexible time off policies, encouraging employees to take mental health days when needed.

The key to success, from reviewing those that succeed and those that fall short is twofold.

1. Their EVO is authentic.

2. They get it out there.

While salary isn’t the sole reason employees stay, it is a key factor. In an increasingly competitive market, companies must regularly review their compensation packages to ensure they are in line with competitors and industry standards. Alongside salaries, offering comprehensive benefits can make a difference. Perks that cater to the employee’s personal life and what matters to them can also enhance retention.

Your ways of working, approach to development and progression even the mission and values of the business can be a top influence for a sizeable portion of candidates.

By ways of working, I don’t just mean hybrid or remote work, though I can tell you that if you don’t offer hybrid, you are already on the backfoot. It’s also about Management style, performance metrics and the culture of the team.

3. Flexible Working Arrangements

The demand for flexible work has skyrocketed since the pandemic, with employees expecting hybrid or remote working options as standard practice. Employers who resist this shift risk losing talent to competitors who offer more flexibility.

The number one reason people move was career development and progression opportunities. However, almost the same proportion had their top motivator as “working for firms driven by a purpose”.

4. Employee Development

These three are the big components of the story you tell about your organisation. That story is known as your Employee Value Proposition (EVP).

Yet, EVP is not a marketing gimmick.

A lack of career progression opportunities is a major reason for staff leaving. Businesses should focus on creating clear development pathways, mentoring schemes, and leadership training to help employees grow within the company.

Strategies include:

It must be the reality of what it is like to work at your firm, because if you fail to deliver the promises made in an EVP then retention will plummet, and your reputation will suffer.

• Creating individual development plans tailored to each employee’s goals.

EVP is something the smallest SME to the largest international firm can implement.

• Offering training and upskilling opportunities to keep employees engaged.

• Creating a workplace culture where it’s okay to talk about mental health without stigma.

Conclusion

Staff retention in the UK has never been more important. As the labour market tightens and the competition for talent intensifies, companies must focus on creating environments where employees feel valued, supported, and motivated to stay. By fostering a positive culture, offering competitive benefits, providing flexible working arrangements, and investing in employee development, organisations can reduce turnover rates and retain their best talent.

No point having an amazing firm if no one knows about so your Join us page and your social media channels should be filled with micro case studies that all prove you deliver on what you say.

Trust me, candidates will look.

Beyond that ensure your recruitment partners and hiring managers consistently back up that EVP story. Mixed messages make candidates doubt the authenticity of your EVP.

Plus, if your EVP is compelling enough, and promoted enough, then you may find your reputation draws talent to you, saving on recruitment costs.

Ultimately, businesses that succeed in retaining staff will not only enjoy reduced costs and increased productivity but will also be better positioned to navigate the challenges of the modern workforce. Retention is not just a HR responsibility— it’s a strategic advantage for every organisation looking to thrive in today’s competitive landscape.

2024 may be a new year, but the trend from the last few years continues. Candidates expect a market rate wage slip; beyond that they’re seeking a place where they can grow, contribute, and feel valued.

As a recruiter with 26 years of experience in the local market, I understand these shifts. I’m here to help businesses in the Northwest navigate these changes, find the right talent, and build teams that thrive.

If you’re looking to discuss your recruitment strategy over a coffee or a call, I’m just a conversation away. Together, let’s make 2024 a year of growth and success for your business. Beam

In fact, from experience with scale ups in the North West, I would say it’s easier for

• Promoting from within, allowing employees to see that advancement is achievable.

As a recruiter with 26 years of experience in the local market, I understand these shifts. I’m here to help businesses in the Northwest navigate these changes, find the right talent, and build teams that thrive. If you’re looking to discuss your recruitment strategy over a coffee or a call, I’m just a conversation away. Together, let’s make 2025 a year of growth and success for your business. Call today on 0151 271 8175.