New research highlights a worrying trend for UK employers: nearly two-fifths (39%) of employees are planning to leave their current roles within the next twelve months.

The survey, conducted by Prezzee, suggests a potential mass exodus, particularly among younger workers, with 55% of Gen Z and 41% of millennials considering a job change. HR teams themselves face significant turnover, with 61% of HR professionals actively looking for new opportunities even though 73% of employees received a pay rise in the past year.

Pay Isn’t Enough: Appreciation Matters More

While salary increases remain a factor in retention, the research reveals that job satisfaction and feeling appreciated are now equally, if not more, important. A quarter of respondents cited lack of appreciation as a reason for seeking a new role, while 21% of remote workers pointed to return-to-office policies as a driver of dissatisfaction.

Employees who plan to stay cite flexibility and a sense of being valued as critical. Interestingly, generational preferences vary: Millennials and Gen X prioritise flexible working, whereas Baby Boomers and Gen Z place higher importance on recognition and feeling valued by their employer.

Recognition Outranks Promotions

When asked what would increase loyalty, employees identified more flexible working options and higher pay as the top factors. Crucially, the third most influential factor is meaningful recognition from a manager, valued even more than a promotion or changes to company culture. The survey also found that 85% of employees would view their employer more positively if offered a small but thoughtful reward.

Insight from Prezzee

James Malia, President of UK and Europe at Prezzee, commented, "Up until now, 2025 has been the year of the ‘great stay’. Economic uncertainty and job market stagnation encouraged employees to sit tight. But our research shows that mindset is changing. Pay rises alone are no longer sufficient. Employees want to feel genuinely valued and recognised for their contribution."

"HR teams, in particular, face a dual challenge: managing turnover across the organisation while also retaining talent within their own teams. Recognition doesn’t need to be costly or grand, but it must be sincere. Simple, personalised gestures can significantly enhance employee loyalty and engagement."

The survey underscores a crucial lesson for organisations that retention is about more than pay.

Recognition, meaningful engagement, and flexibility are now central to keeping employees committed. As businesses prepare for 2026, creating a culture where employees feel valued will be as important, if not more so, than competitive salaries.