Work-life balance, salary, or culture: What matters most to job retention?
Every hiring manager knows that keeping great people is just as hard, if not harder, than finding them. The average turnover rate in the UK sits at around 34%, and understanding what makes top talent get itchy feet is crucial. With top performers outdoing average performers by up to 400%, focussing on how to keep them engaged is one of the most valuable things you can do.
At Marks Sattin, we’ve seen the importance of staff retention play out across finance, tech, transformation, legal, and private equity-backed businesses. With over 30 years of recruitment experience, we know how subtle changes in employee sentiment can alter retention rates overnight. This year’s Market Insight & Salary Guide sheds light on what really drives people to stay, or makes them look elsewhere.
Here, we’ll dig into the numbers to reveal how salary, work-life balance and culture influence staff retention in 2025 and what hiring managers can apply to their own job retention strategies.
Why is staff retention important in 2025?
High turnover is as expensive as it is disruptive. The cost of replacing a single employee can reach upwards of 150% of their annual salary once recruitment, onboarding and lost productivity are factored in. In a market where skilled professionals are in demand, strong staff retention strategies can make or break your plans.
Our 2025 Market Insight & Salary Guide reveals that retention challenges remain high. Across every sector we surveyed, professionals are open to new opportunities, and the top three reasons for leaving are consistent:
- Company culture
- Increased remuneration
- Better work-life balance
For hiring managers, it’s important to note that improving job retention rates doesn’t boil down to one factor. People want fair pay, flexibility, and a workplace culture they can get behind. Businesses that offer all three stand the best chance of retaining top talent.
What makes people stay in their jobs in 2025
Our report shows that today’s professionals are looking for a complete package of financial stability, flexibility, and purpose. People are weighing how a role fits with their personal lives and long-term growth just as much as their paycheque. That means job retention strategies need to focus on the employee experience as a whole.
Here’s a look at three of the top retention trends to consider and where they sit in the retention food chain in 2025.
Salary still drives loyalty
For many professionals, pay remains the clearest reflection of their value. Our data shows that salary satisfaction is evenly split, with around half of professionals across the sectors we surveyed feeling that their salary doesn’t match up with their worth.
That divide is most evident among junior and mid-level professionals, the groups most likely to move for an increase elsewhere. Competitive benchmarking is essential, but so is transparency. Professionals want a clear roadmap of how they can reach the next level.
Salary alone won’t guarantee staff retention, but feeling valued will go a long way. When employees see how their pay fits into a clear structure, they’re more likely to stay motivated and committed.
Effective job retention strategies for salary include:
- Benchmarking salaries annually against current market data
- Publishing pay ranges and linking them to skills and growth, not just tenure
- Reviewing benefits alongside base pay, so people see the full picture
Work-life balance
If salary gets people through the door, flexibility is what helps them stay. This year’s report shows that 78% of professionals work flexibly, with most spending two to three days a week in the office. Nearly the same percentage expect this to last, proof that hybrid is the new normal.
Professionals increasingly see work-life balance as a reflection of trust. Legally, this shift is also supported by employees having the right to request flexible working from day one. Businesses should tread carefully when enforcing a full return to office, as tightening the reins could lead to higher turnover.
To strengthen staff retention strategies around flexibility:
- Empower teams to combine hybrid schedules with collaboration days
- Encourage managers to lead by example in setting healthy boundaries
- Track wellbeing metrics such as annual leave use, overtime and sick days
Company culture and belonging
Company culture is often the deciding factor between staying and going. Our report shows that professionals are playing closer attention to company values and diversity and inclusion. 42% say it’s very important to work for a company with a strong ESG strategy, while 80% are satisfied with their employer’s progress in this space.
That sense of purpose is powerful and it helps to fend off burnout. When professionals align with an organisation’s mission, they’re more likely to stay and grow in line with it. A clear, authentic culture does more than attract candidates. It keeps them engaged long after onboarding.
How to communicate your company culture:
- Build a strong employer brand that puts your values front and centre
- Bring your employee value proposition (EVP) to life through sharing stories, showcasing projects and showing off what makes your culture special
- Encourage open feedback and two-way communication to reinforce trust
How job retention trends vary across sectors
While these core retention drivers are consistent, the balance between them does differ slightly across industries. From cost challenges to workload increases, each market is contending with unique pressures. Understanding these nuances is key for employers aiming to strengthen their staff retention strategies.
- Finance: Career progression and pay continue to top the list of motivators. While 61% of finance professionals report satisfaction with current pay, development and increased salaries are the main reasons high performers jump ship.
- Technology: Flexibility and culture dominate. With 46% of tech hiring managers planning new permanent roles and 25% expanding contract hires, competition for digital talent is fierce. Our report shows that those offering hybrid working and visible growth are more likely to retain high-demand tech talent.
- Legal: While 68% of professionals are happy in their roles, over a third expect to move within 12 months. Leadership visibility, wellbeing, and workload balance all play a role in retention here. Communication can make the difference between staying loyal or seeking a new challenge.
- Private-equity: Retention here hinges on benefits and growth. With 59% happy with their benefits and 61% happy with pay, employees value tangible rewards and clear performance metrics.
Take your staff retention strategy to the next level
Strong job retention rates are built on a foundation of these three key factors. Salary attracts, flexibility shows trust, and culture engages. At Marks Sattin, we’ve spent decades helping businesses build teams that last. We support career progression for our candidates and bring the same philosophy to those that we partner with through our client offering.
If you’re ready to enhance retention within your team, get more useful findings by downloading our 2025 Market Insight & Salary Guide. If you’re ready to partner with us, speak with our consultants about how to improve staff retention or submit a brief today.
