Why Your Best Employees Are Leaving and How Better Benefits Can Keep Them

High employee turnover can be costly and disruptive for any business. Replacing skilled staff requires time, money, and effort, not to mention the loss of knowledge and experience. Many employers focus on salary as the main tool to retain talent, but research and real-world experience show that comprehensive employee benefits play a critical role in employee retention. 

The Real Reasons Employees Leave

Employees leave for a variety of reasons, often beyond pay. Common factors include: 

• Lack of recognition or appreciation 
• Limited career progression opportunities 
• Poor work-life balance 
• Insufficient health, wellbeing, or financial support 

When employees feel undervalued or unsupported, even high performers may start exploring other opportunities. The right benefits package can address these concerns and demonstrate that the employer genuinely cares about their team. 

How Benefits Influence Employee Retention 

Offering robust employee benefits sends a clear message: your workforce’s health, security, and wellbeing matter. Employees are more likely to stay with a company that invests in them. Benefits such as healthcare, income protection, and pensions don’t just provide practical support - they build trust and loyalty. 

Howden Group works with employers to design packages that include services employees truly value, helping businesses improve engagement and retention. Well-structured benefits are not only attractive to prospective hires but also encourage long-term commitment from existing staff. 

Key Benefits That Boost Retention

Healthcare Benefits

Access to medical insurance, dental cover, or health cash plans gives employees peace of mind that their health needs will be met quickly and effectively. Employees who feel supported in maintaining their health are happier, more productive, and more likely to remain with their employer. 

Income Protection

Unexpected illness or injury can create financial stress. Income protection insurance ensures that employees continue to receive an income during extended periods off work, reducing anxiety and providing reassurance that they are supported when they need it most. 

Critical Illness Cover

Critical illness cover helps employees navigate serious health challenges by providing financial support during difficult times. This benefit shows that employers care about long-term wellbeing, not just day-to-day work, which strengthens loyalty and enhances employee retention. 

Workplace Pensions

Long-term financial security is a key priority for employees. Offering a well-structured workplace pension helps staff save for retirement while showing that their employer is invested in their future. Employees are more likely to remain with a company that supports their financial wellbeing and provides clear, accessible pension options. 

Life Assurance

Providing life assurance offers peace of mind to employees and their families. Knowing that loved ones are protected fosters trust in the employer and can be a significant factor in deciding whether to remain with the organisation. 

Beyond Core Benefits

Flexible benefits and wellbeing programmes also make a difference. Employees increasingly expect support for mental health, virtual GP consultations, and lifestyle perks such as gym memberships.  

A flexible approach allows staff to choose benefits that matter most to them, increasing satisfaction and engagement. Howden Group helps employers create packages that reflect these expectations, strengthening workplace culture and promoting long-term retention. 

The Business Case for Investing in Employee Benefits 

Investing in employee benefits is not just about keeping staff happy - it’s also good business. High turnover can cost up to twice an employee’s salary when recruitment, training, and lost productivity are factored in. By offering comprehensive benefits, businesses can reduce turnover, increase engagement, and maintain continuity, all of which have a direct positive impact on the bottom line. 

What's more, benefits that support health, wellbeing, and financial security can reduce absenteeism and improve overall productivity. Staff who feel valued and supported are more likely to contribute fully and remain loyal over the long term. 

How Howden Group Supports Employee Retention 

Howden Group helps businesses understand what their employees value most and designs tailored benefits packages that encourage retention. From healthcare and income protection to pensions and life assurance, we provide guidance to ensure benefits are both meaningful to employees and sustainable for the employer. 

By aligning benefits with the needs of your workforce, you can create an environment where employees feel valued, supported, and motivated to stay. Strong employee retention is not just about salary; it’s about showing that you care for your team’s wellbeing today and in the future. To learn more, get in touch with our friendly team of experts today.