How to retain talent – what the top 5% of companies do differently to keep talent

Your staff, employees, workers – whatever you call them – are probably your biggest asset. Without them, your business just wouldn’t function properly. And when you’ve found the right sort – who are loyal, stay true to company values, see your vision, and respect the workplace – you know it’s worth keeping hold of them.

But how to do this in the right way? How can you retain talent when that talent has so many options and opportunities available to them? It’s got to be done with care and consideration, while doing what’s best for your business in terms of profitability and the bottom line.

Employee retention is a company’s ability to keep staff under contract, which leads to a more productive and stable workforce. This is done by introducing and establishing programmes and policies that reduce turnover. Organisations that achieve a high employee retention rate are at an advantage when it comes to attaining goals and attracting new members of staff.

Staff retention is important to:

• Reduce costs around recruitment, onboarding and offboarding
• Improve productivity
• Negate the loss of business and industry knowledge
• Champion a more inclusive work culture

While we know that employees aren’t expecting, or even desiring, a job for life at the same company anymore, it’s still worth knowing how to retain talent for a few years of their professional working life. The top 5% of companies have that knowledge: they achieve an unusually high staff retention rate and a low turnover, saving on training costs while boosting their reputations.

Across the UK, working trends are shifting and work pressures are numerous, with skill shortages, the knock-on effects of “The Great Resignation,” and changing employee expectations.

So why is it that employees leave their place of work and what, if anything, could make them stay?

Let’s take a look at some comparisons, so we can truly see how the job market has changed over the past 40 years. While there’s no definitive figure that applies across the UK and for every sector, historical labour market data and studies from the 1980s suggest:

• Men stayed at the same company on average between 10 and 15 years
• Women had an average of between five and 10 years
• The overall average was around 10 years

This is backed up by the TUC’s (Trades Union Congress) Future of Work study revealing that, in 1985, about 20% of employees had been with their employer between 10 and 20 years, with 10% staying at the same company for over 20 years. This was mainly due to:

• The dominating factor of long-term employment in the public and manufacturing sectors
• The culture of a “job for life,” especially for older workers and those who were part of a union
• The expectation of fewer changes in career

This 10 year figure is in marked contrast to the current labour market in the 2020s. According to an article from 2025 citing ONS figures, the median job tenure for UK employees is five years, with younger workers, i.e. those under 35, tending to switch roles every two to three years. This is often put down to changes in the economy, tech advances, and the work culture.

So how to change the narrative and how to retain talent? What is it about the top companies in the UK that leans towards retaining top talent while making a success of their business? Is it all intertwined? Let’s find out more…

Below are some of the differentiators that set top UK companies apart from the others:

1. Investing in people while offering visible progression – this encompasses clarity on career journeys during the hiring process, frequent catch-ups on side moves and promotional opportunities, and workers knowing where they can progress if they give it their all.
2. Compensating competitively and providing rewards – not just salary-based but incorporating benefits, such as share options and bonuses, along with transparency around pay rises. 

Example

At Bunzl, a British multinational distribution and outsourcing company with its headquarters based in London, employees stay, on average, for 10.2 years. The business offers financial solutions, educational funds, and a family feel.

3. Delivering flexible working and autonomy – where hybrid and remote options are prevalent, flexible hours are easy to come by, and employees are trusted to complete their work to a high standard.
4. Offering purpose and a values-driven work culture – where employees work for a business that means something to them, with a culture of belonging and collaboration.
5. Focusing on wellbeing – this includes offering mental health support in the form of programmes, time off when needed, and policies that reduce work overload, which leads to the avoidance of employee burnout.

Example

Octopus Energy was cited as one of the top 26 best big places to work in 2025, achieving 90% retention due to hybrid work, free yoga classes to help with wellbeing, and upskilling courses.

6. Employing outstanding leaders and line managers – ones who are trained in coaching and can provide constructive feedback, along with excellent communication and supporting career growth.
7. Providing continuous development and learning – by regularly investing in reskilling, upskilling, mentoring, coaching, and external training.
8. Incorporating active listening, then acting on it – with frequent engagement to collate the views of employees, such as exit interviews and offboarding best practice, then actually doing something about the results.

Example

The manufacturing sector boasts the highest staff tenure in the UK according to the Employee Retention Report 2024, carried out by Vestd, with staff staying for an average of 5.3 years, potentially due to clearer career paths, a strong union background, and more stable jobs.

9. Possessing strong company branding – having a robust external reputation attracts and retains those workers who align with the same values, with employee value proposition (EVP) ensuring staff feel valued and like they belong.
10. Boosting stability and job security – which is especially relevant in these times of economic insecurity – top companies know how to retain talent by providing that security and predictability, along with clear policies and honest communication when things change.

A survey cited that 9 in 10 UK companies fail to retain talent because:

• 60% of employees felt they were paid below the industry standard, meaning better pay would lead to higher retention.
• Over half (53%) stated that their work-life balance was poor.
• Just under half of respondents (49%) said the lack of career progression meant they had to move onto other positions.

Out of 300 UK HR decision makers, just over half (51%) cited that retaining their top talent was their biggest fear for the coming year. This is tied up with other major concerns, such as offering a substantial work-life balance, meeting pay expectations, providing mental health and wellbeing support, and overseeing requests for hybrid and remote working opportunities.

In order to shift from an average company, in terms of talent retention, to one of the top ones, try these pointers:

• Measure and analyse – gather current data, including turnover percentages, feedback from exit interviews, intention to leave, and employee satisfaction, then compare these with UK and industry benchmarks.
• Define what “good retention” means for your company – decide what turnover is tolerable, which roles are non-negotiable, and what is aspirational for staff.
• Align your new retention process with your business strategy – assign staff retention as part of the agenda for leaders, pinpoint a reasonable budget, and involve HR at the highest level.
• Sketch out the lifecycle of employees – cover hiring, onboarding, professional development, progression, and retention, identifying any weak areas along the way.
• Enhance the capability of team managers – train management level staff to coach, offer feedback, recognise achievements, and prevent burnout.
• Boost the work culture – be transparent on values, the company mission, and purpose, ensuring the culture is respectful and fair while offering a sense of belonging.
• Introduce flexibility – include remote / hybrid working and flexible hours, where staff who take these aren’t looked down upon by other team members.
• Concentrate on employee wellbeing – offer mental health support systems and programmes.
• Deliver growth and learning – show clear pathways to internal promotions and career frameworks.
• Listen and learn from staff – conduct detailed surveys and collate feedback, then act on what they say.

If your organisation is considering outplacement services, contact Careerminds at the earliest opportunity to find out more.