Employee turnover in the UK: Why are employees quitting in 2026?

A third of the UK workforce won't hold the same job a year from now. That number alone would be striking, but PwC's research adds a harder edge to it: 4.4 million workers are currently on the brink of leaving the labour market altogether, not just switching employers, and for most of them, nobody at work noticed early enough to help.

That gap between what's happening and what employers are catching says something about how turnover actually works. It's rarely one bad Monday. It's built gradually, out of small, repeated signals that pile up until someone decides they're done, either with the job or with work itself.

Businesses are starting to register the cost of missing those signals: productivity, retention budgets, and institutional knowledge all take the hit once someone's already handed in notice.

This article examines the main reasons for employee turnover in the UK. Some of the causes are well known. Others are quieter and easier to miss until they show up in an exit interview. So, read on for the full breakdown.

How's turnover in the UK in 2026?

The average UK employee turnover rate stands around 34%, according to the most comprehensive benchmark — nearly double the global average of around 20%. That figure splits into 27.4% of employees moving to a new employer within a year, and 6.6% leaving the workforce entirely, whether for study, retirement, long-term sickness, or a career break. In practical terms, roughly one in three UK workers isn't in the same job a year from now.

The picture varies by sector:

The labour market in 2026 looks different from previous years. UK job vacancies have fallen to about 707,000, the lowest since early 2021. According to ONS data, there are now about 2.5 unemployed people for every open job. This means employers are dealing with a much looser market than they did a few years ago.

In theory, this shift should help companies keep their staff. With fewer job openings and more competition, employees have fewer chances to move elsewhere. Some industries show this trend. For example, voluntary turnover in manufacturing fell to 6.24% in 2024, down from over 20% two years earlier. When there are fewer outside options, people tend to stay in their jobs.

But overall turnover has not dropped as much as expected. Sectors like hospitality, retail, and social care are still losing staff at rates almost the same as before 2022, even though the job market is tighter. This shows that deeper issues are driving these numbers, not just new job opportunities.

The cost of ongoing turnover is high. Replacing an employee earning £25,000 or more costs an average of £30,614. This covers recruitment, onboarding, training, and lost productivity. For senior or highly skilled jobs, the cost can rise quickly, sometimes topping 200% of the annual salary. A slower job market makes it harder for people to leave, but it does not address the reasons they want to go.

Don´t miss our related content: 88% of companies consider employee retention a top priority in 2026

What is considered a good turnover rate?

A zero percent turnover rate isn't realistic, and it wouldn't even be desirable. Some churn brings a fresh perspective into an organisation and clears space for new skills to enter. The more useful question is what counts as normal for a given industry, role, and moment in the economic cycle, rather than chasing an arbitrary target that ignores context.

Also, role type matters just as much as industry. LinkedIn's data placed human resources at the top with a 15.6% rate, while administrative roles recorded the lowest at 7.8%. A company with a large HR function and a lean admin team, purely by virtue of that mix, will carry a higher blended turnover rate than a company structured the other way, regardless of how well either one manages its people.

In practice, this means that comparing a raw turnover percentage to a single UK-wide average is rarely useful on its own. The number only becomes meaningful once it's set against the right benchmark, meaning the same industry, similar roles, and a comparable point in the labour market. That's why, tracking that number consistently over time is what lets an organisation catch a worsening trend early, rather than discovering it months later in an exit interview.

Reasons for employee turnover in 2026

Employee turnover in the UK usually happens for more than one reason. Most people don’t leave after just one bad month. Instead, issues add up over time, like benefits that no longer fit their needs, managers who aren’t trained, a workload that never changes, or feeling ignored for too long.

Many studies show that while pay is often listed as the main reason people leave, it is rarely the only factor. Other key reasons include the quality of management, support for wellbeing, recognition, and flexible working conditions.

Employees are more likely to leave when several of these problems happen simultaneously.

• Pay and financial benefits: Seven out of ten employees say this is their main reason for leaving. Today, this often includes other financial perks, not just salary.
• Poor management and toxic culture: About one in three UK workers has left a job because of workplace culture.
• Inadequate wellbeing and health support: Over 70% of employees have left or thought about leaving because of poor wellbeing support. In addition, 85% would consider leaving a company that does not make employee wellbeing a priority.
• Stalled career progression: Pay, combined with opportunities for growth and development, remains a key reason people decide to stay or leave a job.
• Lack of recognition: Nearly 20% of workers have never been thanked for their achievements. Also, 59% would consider leaving if their hard work goes unnoticed.
• Inflexible working conditions: 81% of employees value flexible hours and location. In addition, 60% would not accept a job that harms their work-life balance.
• Work-life imbalance and work overload: Along with flexibility, employees are concerned about having too much work and always being expected to be available.

Pay is still the most common reason for turnover, but it's not the only factor

Pay remains the main reason for turnover in the UK, but it is only part of the story. Recent surveys show that 71% would leave their current employer for better pay and benefits, more than for any other reason. In fact, only 13% said they are truly happy with their current benefits, and 51% plan to look for a new job within the year.

This is not a new trend. In 2017, 51% of job seekers also said pay was their main reason for changing jobs. While the numbers have shifted over time, pay has consistently remained the top reason.

But a higher salary is not the only thing employees are looking for. About 40% said they want additional financial benefits, such as salary sacrifice schemes or season ticket loans. In fact, 57% said they value health and wellbeing perks more than just a pay rise.

People who are unhappy with their pay often feel stuck in their careers or feel their work no longer helps them grow. Pay is usually the first reason employees mention, but it is rarely the only reason they leave. It is the easiest issue to point out, but it is not the whole story.

You might also like to read:Top 15 employee benefits in the UK for 2026 (a guide for employers)

Workers are "quitting" their bosses

Almost one in three UK workers has quit a job because of a negative workplace culture. Another 28% left because of a bad relationship with their manager, and 12% left due to discrimination or harassment. In many workplaces, leadership issues cause more turnover than any single policy.

A bigger problem is that 82% of new managers in the UK begin their jobs without any formal management or leadership training. Many of these "accidental managers" are promoted for their technical skills, not for their ability to lead. As a result, only 27% of workers think their manager is highly effective. The impact shows up even before people leave. Half of employees who see their manager as ineffective plan to quit within a year, and a third feel less motivated to do their best work.

Of the employees considering leaving, only 46% have a good opinion of their manager. This suggests that once trust in a manager is lost, it usually does not return by itself, and higher pay or extra perks do not solve the problem.

Training matters. Managers who have formal training are more likely to deal with poor behaviour. In fact, 25% of trained managers address these issues, compared to only 15% of those without training.

The real problem is not a lack of effort, but a lack of training. Most managers want to support their teams, but many have never learned how.

Lack of wellbeing and health support

Three quarters of employees have left a job or seriously considered about leaving because their employer did not support their wellbeing. The thing is that, even though 97% of employers say wellbeing is important for business success, 72% do not plan to invest more in related initiatives this year.

Our Work-Life Wellness 2026 report shows this trend is happening worldwide. Eighty-five percent of employees say they would think about leaving a company that does not put employee wellbeing first, up from 68% in 2022. This shift in priorities means pay and promotions are no longer enough to retain people. Younger employees, in particular, are more likely to leave if their needs are not met, so companies with old-fashioned benefits are at greater risk of losing staff.

“If you focus only on what people deliver and not how they work, results eventually become unsustainable. Wellbeing is what enables people to perform better and more consistently.” 

Lauren von Stackelberg, Chief Diversity & Inclusion Officer & Global Head of Wellbeing, VP at the LEGO Group

The scale of the problem helps explain these changes. Almost 90% of UK employees report experiencing burnout symptoms, and almost 40% experience them at least once a week. Gallup estimates that burnout causes about $322 billion in lost productivity and turnover each year. Also, replacing employees who leave due to burnout costs between 15% and 20% of their annual salary.

Right now, only 54% of employees say their overall wellbeing is good or thriving, which is down from 63% last year. Financial stress makes things worse, as 73% of employees say their current finances make it hard for them to invest in their own wellbeing.

Demographic changes in the UK are creating a big long-term challenge. The Guardian reports that the country could lose another 600,000 workers to long-term illness by 2030 unless employers change how they support staff. This adds to an existing trend: since 2019, 800,000 more people have left the workforce because of health issues, which could cost the economy tens of billions of pounds each year.

All of this data shows that wellbeing is changing how businesses operate. Sixty-one percent of employees with access to structured wellbeing programmes say they are thriving, compared to only 40% of those without this support.

Lack of growth opportunities

One in five UK employees say they are "quiet quitting," meaning they only do what is required at work. The reason behind this: nearly three-quarters of workers (74%) feel they do not get real opportunities to use their skills, and 67% say this makes them less productive than they could be.

Gen Zs are the most concerned, with 65% saying their strengths are not used at work and 28% saying this has caused them to quiet quit. As they are on track to become the largest group in the workforce, these numbers suggest the next generation wants a clear path for growth and better opportunities. However, the problem is not just about skills. Most employees (88%) have never taken an assessment to learn about their own cognitive strengths, yet 64% believe their workplace would run better if people understood how their coworkers work.

The real problems start when employees lose interest in their work and stop feeling engaged. Around 27% say their careers are not progressing in their current jobs, and 23% would switch roles just to learn new skills for the future.

The same main issues keep appearing in workforce studies: pay, career growth, and progression. In 2017, a study found that one-third of employees said they looked for a new job because they did not see a path to move up. Almost ten years later, this stat has hardly changed. While new topics like hybrid work, AI, and rising living costs have come up, employees still want opportunities to grow in their careers.

Flexibility is now a non-negotiable for some employees

Flexibility has become essential, not just a bonus. In fact, 81% of employees say flexible hours are a top priority, and 60% would reject a job if it threatened their work-life balance. For many, flexibility is a dealbreaker before they even think about accepting an offer.

Return-to-office mandates are causing the most tension. Between 2023 and 2024, many UK employers made attendance rules stricter, often saying it was for culture or teamwork. But research shows a gap between what leaders want and what keeps employees engaged. As McKinsey points out, employers want people back in the office, employees push back, and both sides often misunderstand each other.

The real risk is not that flexible working will disappear, since most UK employers still offer some form of hybrid option. The issue is that the rules are getting tighter: fewer remote days, stricter core hours, and more attendance monitoring. Each change might seem reasonable on its own, but together they chip away at the “flexible policy” that 81% of workers say they need.

This is especially costly because the people most likely to leave are those with valuable skills or other good job options. When flexibility is reduced, they are the first to go. A strict attendance policy does not just raise turnover; it means losing the people the organisation needs most.

When the job leaves no room for a life

People often mention work-life imbalance and flexibility together when discussing why employees leave, but they are not the same thing. Flexibility means having control over your schedule and location. Work-life imbalance is about whether someone has enough time for their personal life.

When this happens, employees feel stressed all the time, take on too much work, and have a hard time balancing their jobs with their personal lives.

Even with full flexibility—like starting work later, working from home, or changing hours for the school run—an employee can still feel overwhelmed if the workload doesn’t change. Flexibility just shifts when the pressure happens; it doesn’t remove it.

This reflects a bigger change in what employees value today. More people are making personal time and work-life disconnection a priority, rather than squeezing them in after work.

Evenings, weekends, and time after logging off are now protected just like regular work hours used to be. Employers who expect people to be available outside these times—such as sending late messages or weekend emails, or having an unspoken rule to always be reachable—are finding that more employees are unwilling to give up their personal time for work.

Lack of recognition (the quiet resignation trigger)

Nearly one in five UK workers (19%) say their employer has never thanked them for something they achieved. More than half (51%) feel undervalued, and 53% say that not being recognised makes them less motivated.

Even more, 59% would consider leaving their jobs if no one noticed their efforts. This shows that lack of recognition is a real reason people leave companies.

Around 40% of UK employees say they feel underappreciated at work. In contrast, 78% of those who feel recognised say they are more motivated, and 69% say they work harder. Recognition also affects attendance: 21% of employees say they take fewer sick days when they feel appreciated.

This challenges the belief that recognition is only a nice extra.

For example, interviews with UK cleaning staff in a study by LIGS University found that lack of recognition and respect is a main reason people leave these jobs. Workers spoke openly about this issue. One said cleaners are rarely appreciated by clients or management. Another mentioned disrespect from colleagues, supervisors, and the public. Even though pay has improved in recent years, turnover is still rising. This suggests that recognition is a separate factor, not just a replacement for better pay.

It is important to note that the most valued forms of recognition are not always about money. While 71% of people prefer financial rewards and 66% value promotions, 65% appreciate a private thank-you from a manager. These are simple, low-cost gestures that many organisations still overlook.

How about turnover due to economic inactivity?

Not everyone who leaves a job moves to another one.

In the UK, more people are leaving work altogether instead of just changing employers. Recent research found that one in ten UK workers is considering leaving the workforce for good, which is about 4.4 million people. Another 19% have seriously thought about taking a long break from work in the past year. For people aged 18 to 24, mental health is the main reason.

This type of turnover affects employers differently than a typical resignation. Nearly nine out of ten businesses are concerned about more people leaving work entirely. Around 81% say their productivity has already dropped, and 73% report a negative impact on their finances. These costs are more than just replacing a worker, because experienced staff take their knowledge with them and it does not help a competitor.

One thing that stands out is how slowly this process usually unfolds.

Most people who left work said it was a slow process, not a sudden decision. About 58% felt their employer could have done more to help before things got so bad. The reasons are clear: 35% left because their work was unfulfilling, 42% of 18- 24-year-olds left due to mental health issues, and 38% of those aged 35-44 left because they saw no chance for career growth. These are the same problems mentioned earlier, but in these cases, they led people to leave completely rather than just find a new job.

More than half of employers (54%) are already reconsidering the support they give to keep people from leaving. At the same time, over half of businesses are worried about hiring people who have already left the workforce, mainly because they might lack certain skills. Still, these businesses say they want to do more to keep people from leaving in the first place.

These two views do not match well, and the gap between them may say as much about the real state of employee retention in the UK as any single statistic.

Lower employee turnover by focusing on wellbeing

High turnover usually signals deeper problems. Employees often leave when they feel exhausted, undervalued, or disconnected from their work. This leads to higher costs, lower productivity, and a weaker company culture.

An corporate wellbeing programme can make a real difference. It shows employees that their health and happiness are important, not just their performance. Wellhub offers flexible, personalized benefits for physical, mental, and emotional wellbeing. The numbers are clear: 74% of Wellhub members say their wellbeing improved in the past year, compared to 43% of non-members. Overall, companies using Wellhub have seen turnover decrease by as much as 43%. 

Get a free quote to learn how you can reduce turnover and create a workplace where people want to stay.