Having investigated in our previous research how rewards can improve workplace situations (whether it’s employee morale and retention, productivity or wellbeing), we thought it was time to turn our attention to solving problems in the workplace. With this report we take a look at the problem of high staff turnover, and what aspects of the employer-employee relationship can make or break staff loyalty. Recruitment, resignation and HR issues costs British businesses significant amounts in time and money, and unhappy staff will often deliver a poor service. Crucially, all the rewards and incentives in the world will not make retain staff in the long-term if the working environment or management strategy makes them seriously unhappy. We hope you will find the findings of this review insightful, and that you will be able to use its findings to increase retention and loyalty in your workplace.

1. THE LOYALTY PREMIUM REPORT
One4all Rewards
February 2017

2. Introduction
Here at One4all Rewards, staff happiness and retention is our business. Having investigated in our previous research how rewards
can improve workplace situations (whether it’s employee morale and retention, productivity or wellbeing), we thought it was time
to turn our attention to solving problems in the workplace. With this report we take a look at the problem of high staff turnover, and
what aspects of the employer-employee relationship can make or break staff loyalty.
Recruitment, resignation and HR issues costs British businesses significant amounts in time and money, and unhappy staff will often
deliver a poor service.
Crucially, all the rewards and incentives in the world will not make retain staff in the long-term if the working environment or
management strategy makes them seriously unhappy.
We hope you will find the findings of this review insightful, and that you will be able to use its findings to increase retention and
loyalty in your workplace.
Declan Byrne,
Managing Director at One4all Rewards
Report based on a survey of 1,002 UK workers in full or part time employment, conducted by Atomik research.

3. Why workers stay
When trying to improve staff turnover, the most important question to ask
is: What makes employees choose to stay with employers?
When asked about what would make them stay at a company for the
long-term (e.g. 5 years or more), our panel of employees placed a nice
working environment higher than anything else – demonstrating that, while
offering incentives and benefits can be extremely powerful – they cannot
repair the damage a bad company culture can cause.
Regular pay rises and long-term benefits (such as pensions and health
insurance), were ranked in second and third place – suggesting that a
combination of social factors and tangible benefits must be considered.
The survey also shows that bosses should not underestimate the
importance of another social factor – team building. While these may
seem an unnecessary expense, especially in smaller companies, 35%
of workers considered having good relationships with colleagues an
important factor in staying with a company.
Benefits and rewards, in the form of cash bonuses or gift cards, would
encourage greater longevity of service for a third (33%), and flexible
working hours are popular with 29% of staff.
Interestingly, job security was key for just 31% - although it could be argued
that many do not consider this as a plus, and more of a base requirement.
TheTop10ReasonsWhy
WorkersWillStayfortheLong
Term(5+Years):
1. Aniceworkingenvironment–50%
2. Regularpayrises–42%
3. Longtermbenefits–e.g.acompany
pension,healthinsurance–36%
4. Havinggoodrelationshipswith
colleagues-35%
5. Monetaryrewards(e.g.cashorgift
card-basedbonuses)–33%
6. Good career progression and/or
training opportunities - 32%
7. Job security – 31%
8. Flexible working (e.g. flexi-time,
the opportunity to work from home
on some occasions) – 29%
9. Having good relationships with
managers and/or superiors – 22%
10. The building or premises being in a
convenient location – 19%

4. What makes junior and senior workers stay?
While junior and senior workers did have some different priorities in terms of what they look for in the long-term, some factors were universal.
For both types of staff, a nice working environment came out as the number one factor. Similarly, regular pay rises were key for both, with
older workers being marginally more focused on this (34% vs 44%) – perhaps as the frequency between promotions slows down and they
look to pay reviews as the main way to increase their income.
Junior workers were especially concerned with the opportunities for progression (39%) that companies afforded them, as well as monetary
rewards such as cash bonuses and gift cards – neither of which senior workers considered to be amongst the most important factors for
them.
Job security did not index in the top five priorities for junior workers – but fell into fifth place for those in more senior possessions, with 32%
considering this key.
Long term benefits such as health insurance and company pension packages were key for both demographics.

5. The junior/senior divide
TheTop5ReasonsWhyJunior
WorkersStayForGood:
1. Aniceworkingenvironment–47%
2. Goodcareerprogression/training
opportunities-39%
3. Regularpayrises–34%
4. Monetaryrewards
(e.g.cash/giftcards)-34%
5. Longtermbenefits(e.g.companypension,
healthinsurance)–28%
TheTop5ReasonsWhySenior
WorkersStayForGood:
1. Aniceworkingenvironment–51%
2. Regularpayrises–44%
3. Havinggoodrelationshipswith
colleagues–37%
4. Longtermbenefits
(e.g.cash/giftcards)–37%
5. Jobsecurity–32%

6. Why workers leave
When polled about why workers have left previous employers, a lack of
career progression was the reason cited the most.
However, a lack of training and development also fell into fifth place -
suggesting that, while offering career development is not something that
is likely to make workers stay at companies for a long time, it’s certainly
something that can make them leave.
Issues relating to managers and superiors were also key – for example,
poor relationships with bosses fell into second place (21%) and not feeling
appreciated finished in fourth place (17%).
Problems with workload – such as feeling overworked (third place) and
not being offered enough support (seventh place) – were enough to
warrant departures for 17% and 15% respectively.
Meanwhile, factors relating to workers feeling unsettled – such as a lack
of job security (11%), or changes to the team structure (11%) – came in at
ninth and tenth place.
TheTop10ReasonsWhy
WorkersHaveLeftJobs:
1. Alackofcareerprogression–23.35%
2. Poorrelationshipswith
managers/superiors–20.96%
3. Feelingoverworked–16.77%
4. Notfeelingappreciated/valued
bysuperiors–16.67%
5. Alackoftraininganddevelopment
opportunities–15.07%
6. The commute –14.97%
7. Not being offered enough support
and not enough benefits –14.87%
8. A lack of flexible working
(e.g. flexi-time/opportunities to
work from home on some
occasions) –13.57%
9. Feeling insecure in the job –10.88%
10. Changes to the team
structure –10.78%

7. Reversing decisions to leave
With a surprising 91% saying that they would consider staying once they’d
handed their notice in, depending on what the counter-offer, a notice of
resignation doesn’t necessarily mean it’s over.
In fact, there are a number of things employers can offer that workers
confess would tempt them to stay.
Salary based offers are amongst the most effective measures employers
could take when trying to convince an important worker to not resign.
Almost 1 in 2 (45%) admitted a 25% pay rise would make them stay, while
1 in 5 (19%) would settle for a 10% salary increase.
Changes to job titles and structures could also be effective – for example,
1 in 4 (23%) would remain at a company if they were offered a promotion.
Benefits and incentives are also powerful tools – 17% could be won over
with offers of flexible working (e.g. flexi-time or the opportunity to work
from home sometimes), 16% by a bonus, 14% by a larger bonus and 8%
with a company car.
Despite this, just 25% of workers have been made a counter-offer after
handing in their notice.
TheTop10ThingsEmployeesSay
WouldMakeThemReconsider
LeavingaJob:
1. A25%payrise–44.71%
2. Apromotion–23.15%
3. A10%payrise–18.56%
4. Flexibleworking(e.g.flexi-time/the
opportunitytoworkfromhomeon
someoccasions)–17.37%
5. Abonus–16.67%
6. Increased benefits
(e.g. a larger bonus) – 14.77%
7. Being given reassurance about
job security –12.97%
8. Training and development
opportunities – 11.08%
9. A company car or being offered
more support in the role – 8.28%
10. Changes to the team
structure –7.68%

8. Resignations are contagious
62% of staff report that a colleague leaving the company makes them feel unsettled in their role. 1 in 4 (23%) employees have said a
resignation has made them re-evaluate how happy they are in their role at the company, while 1 in 5 (21%) have even said that it has
made them actually consider getting a new job, too.
These findings suggest resignations can be ‘contagious’ – an extremely worrying thought for businesses with high staff turnovers.
But it isn’t just employees’ state of mind that employers should worry about when colleagues decide to leave – the average worker
has to take on, on average, 38% of their workload while a replacement is found. In fact, 20% of workers believe they have to take on a
‘significant’ amount of the departing staff’s work while this process plays out.
These unsettled feelings, coupled with having to take on more than an extra third of workload, can have a dangerous impact on how staff
feel about their role, and the company, at a time when many will already be weighing up whether they themselves would like to stay or
leave.
To avoid this circle of negativity, employers should ensure staff departures are sensitively handled and communicated to other members
of staff – and do the best they can to ensure resources are put in place while a replacement is recruited. Of course, attempting to avoid
staff departures where possible will help to prevent this problem occurring in the first place.

9. What is the cost of staff turnover to businesses?
Staff departures have a major impact on productivity and profitability.
Half of businesses report that it takes at least a month to replace a member of staff (interviewing, recruiting and beginning work), with just
under a third (30%) taking an average of 2 to 3 months.
And with nearly a third of UK businesses regularly using recruitment consultancies to make hires, this can become an expensive
process – costing an average of 20% of the successful candidate’s annual salary.
But it isn’t just recruitment fees that stack up – our research shows that a substantial percentage of a departing workers’ salary will be
wasted as productivity drops in the period before they leave, with the average worker admitting their productivity drops by 35% once they
have handed in their notice.
In total, the data shows that companies stand to lose £6,335.31* - just under a quarter (23%) of the average UK workers’ annual salary
- in recruitment fees and workers’ salary when a member of staff decides to leave – no small sum.
*Based on an average full-time workers’ salary of £27,645 (Office of National Statistics, 2015), an average recruitment fee of 20% of the first year’s salary, an average 1 month notice period and a
35% loss of productivity in this period.

10. The Loyalty Premium
There’s more to staff loyalty than just having an invested and experienced workforce.
According to this research, there are significant financial gains to be reaped from ensuring workers are happy, loyal and in it for the long
term.
Indeed, the data shows that this loyalty factor is worth just under a quarter (23%) of the average UK full time worker’s salary – or £6,335.31
in real terms. This figure soars even higher when you consider how many workers are earning above the average salary.
With this in mind, the occasional token gesture of appreciation – such as a team night out or a small bonus – doesn’t seem like much of
an outlay in comparison.
Indeed, this figure provides a serious case for implementing an annual staff benefits scheme to benefit all staff.

11. The Loyalty Premium
*Based on the national minimum wage for workers aged 25+ working a 40 hour week
*Based on the salary, an average recruitment fee of 20% of the first year’s salary, an average 1 month notice period and a 35% loss of productivity in this period.
Salary The Loyalty Premium
£14,976* £3,432
£24,976 £5,724
£34,976 £8,016
£44,976 £10,307
£54,976 £12,599
£64,976 £14,890
£74,976 £17,182

12. Conclusion
A lack of loyalty not only causes significant financial headaches for businesses; it can even be contagious, causing mass-departures. As
such, it is vital that businesses avoid a disposable attitude to workers and actively work to promote happiness in the workplace.
This data has clearly demonstrated the significant value of staff loyalty – and proven how it makes more financial sense to invest in
measures that encourage loyalty than to risk the cost of having to replace a departing employee.
According to this research, the key to keeping staff happy in the long term is offering a healthy, positive environment that includes not only
an improved working experience - such as measures and processes to encourage good relationships with colleagues – but also tangible
rewards, such as regular pay rises, gift cards and cash rewards.
And while higher-cost factors – such as training & development opportunities and career progression – are less likely to heavily impact
retention rates, the research shows that ultimately a lack of these benefits will result in departures.
On the occasions where a worker does decide to leave, businesses should make use of their potential willingness to reconsider at the
resignation stage and, if all else fails, make sure to minimise disruption to colleagues’ workloads while finding and training a replacement.
In a nutshell - when assessing the value of staff benefits and rewards, consider the Loyalty Premium.
T: 0207 608 2008 | E: corpsales@one4allgiftcard.co.uk | W: one4allrewards.co.uk