Staff Retention in 2026: Why Keeping Your Best People Is Just as Important as Hiring New Ones

Key Takeaways

Retention needs to sit alongside hiring on your priorities list. So many clients we talk to assume their employees are settled, without actively checking in. Salary transparency and market benchmarking reduce the risk of staff leaving. Thought-out, structured onboarding has been proven to have a measurable impact on long-term retention. Engagement, plans for development, and reward strategies that align with what your people want are commercial decisions, not nice-to-haves.

Hiring Is Picking Up. This Doesn’t Mean There’s No Risks.

We’re seeing hiring activity increase again across Yorkshire and beyond, which is brilliant news for businesses. Confidence is returning and new roles are being signed off, and many of our clients have put their growth plans back on the table.

This is great.

But here’s the issue. When hiring ramps up, people start moving around again. And sometimes, that means your people start looking elsewhere.

The same market conditions encouraging you to hire are also encouraging your competitors to hire too. Which means your people are being approached and potentially tempted elsewhere.

If you only focus on attraction at this stage, it’s easy to overlook the more immediate risk: losing the people already delivering results.

“We Thought They Were Settled”

This is one of the most common phrases we hear when someone resigns.

On paper, everything looked fine. Performance was good. They never had any complaints. There were no obvious signs of disengagement.

But assuming your staff are happy isn’t a good retention strategy.

When the market is more active like it is currently, your staff don’t need to be unhappy to leave. They just need to be curious. It could be the smallest thing that turns their head: a slightly better salary. A clearer progression plan. A more flexible working model. A stronger onboarding experience somewhere else.

If you’re not proactively checking in on engagement, keeping on top of people’s development and asking how they’re doing, there’s every chance that you’re operating on guesswork.

How to Improve Staff Retention

Salary Still Matters

Let’s be upfront about it - pay isn’t always everything, but it is a major factor for most people.

When employees are unsure how their salary compares to the rest of the market, they’ll go looking to find out, often by speaking to a recruiter.

If you’re doing regular benchmarking, it will help to reduce potential unnecessary attrition. It’ll also help protect you from reactive counter-offers, which are rarely a long-term fix.

Don’t know where to start with benchmarking? Our 2026 Salary Survey gives businesses a clear picture of:

Market rates across finance and HR roles Trends in benefits and flexibility Candidate expectations in a shifting market

Retention becomes easier when pay conversations are proactive rather than triggered by a resignation letter.

Retention Starts on Day One

Onboarding is one of the most underestimated drivers of long-term retention. The first 90 days someone spends in a role can be key. It can shape how someone feels about:

Their decision to join
Their manager
Their future in the business
Their sense of belonging

Having a structured onboarding process from day one helps new hires:

Feel part of the team faster
Build meaningful working relationships
Understand what’s expected of them
See their potential progression pathways early

Research from the CIPD consistently shows that strong onboarding improves retention in the first year. And the first year is where many costly exits happen.

If your onboarding is informal, inconsistent, or overly dependent on one manager, you are increasing risk before someone has even fully settled.

Quick Wins to Improve Your Retention

Making your retention better doesn’t need to mean you have to do a full strategic overhaul. There are practical changes you can put into motion immediately.

Talk to people about what would make them stay. Ask your high performers what would make them stick around in the long term. Don’t wait until they’re halfway out the door.
Benchmark your salaries now If you haven’t reviewed pay in the last 12 months, you’re likely relying on outdated assumptions. We can help you benchmark if you don’t know where to start.
Make progression pathways clear Many employees leave because they can’t see what “next” looks like. Even mapping out indicative career steps can improve engagement.
Take a good look at your onboarding process Is it structured? Documented? Consistent across the whole organisation? If not, this is a fast and high-impact fix.
Train line managers to have better development conversations Retention often sits with the direct manager. Ensuring they know how to have those conversations is key.

Strategic Retention for 2026

If you’re planning to hire this year, ask yourself:

Are you investing as much energy into keeping your existing team as you are into attracting new talent?

Growth isn’t just about headcount. It’s about the long-term capability of the people in your team already, as well as new talent. If you need to talk about your retention strategies, we’re here to help. Contact the team for a confidential chat.

FAQs

Why is staff retention important in a growing recruitment market?

When hiring activity increases, employees have more external opportunities. If you’re not proactively managing your staff engagement and development, you’re more exposed to people potentially looking elsewhere.

Is salary the main reason employees leave?

Salary is a significant factor, particularly if employees feel underpaid compared to market rates. However, progression, flexibility, leadership quality and onboarding experience also play a major role.

How does onboarding affect retention?

Structured onboarding helps employees feel confident, connected and clear on their expectations. Businesses with strong onboarding processes typically see higher retention in the first 12 months.

How often should we benchmark salaries?

At a minimum, annually. In more active markets, reviewing pay positioning more regularly means you remain competitive and more able to avoid reactive counter-offers.

What is the first practical step to improve retention?

Start with visibility. Review salary benchmarking, audit your onboarding process, and hold structured development conversations with key team members.