More than half of UK workers who feel undervalued at work say they plan to leave their jobs in 2026 unless things change, according to new research. The findings suggest that many employers are still missing signs of discontent and risk losing staff unless recognition and compensation improve.
A survey of 4,000 UK employees commissioned by benefits platform Perkbox found 42 percent feel undervalued, and among this group, 54 percent are considering quitting next year. Even in the wider workforce, 34 percent are thinking of leaving, showing how undervaluation is becoming a widespread risk for retention and wellbeing.
The sense of being undervalued varies by sector and employer size, with public sector staff rating their sense of being valued at 6.40 out of 10 compared to 6.92 in the private sector. Large companies with more than 1,000 employees score lowest on employee value (6.21 out of 10), suggesting that in bigger organisations recognition tends to be diluted. Nearly 40 percent of surveyed UK workers say their employer is not doing enough to make them feel valued.
Morale and motivation suffer heavily among those who feel undervalued. The survey reports a 57 percent drop in motivation, 50 percent in morale and 47 percent in enthusiasm within that group. Employers themselves recognise the consequences: 64 percent link undervaluation to falling productivity and 53 percent see it as a cause of retention issues.
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“Employees’ perception of how they are valued by their employers understandably impacts their morale and, in turn engagement, productivity and retention,” Perkbox CEO Doug Butler said. “Focused strategies and tools that foster cultures where all employees feel valued are worthwhile investments of time and resources for businesses in our current social and economic environment.”
Benefits and recognition matter more than perks
The research reveals what can help close the gap between how employees want to feel and how employers act. For employees, recognition is the top driver of feeling valued, cited by 53 percent of respondents. Tailored benefits also matter: 79 percent say personalised benefit packages would help them feel more valued, and 68 percent believe better benefits would boost productivity, and it rises to 84 percent among those aged 25‑34.
But according to Perkbox, many organisations are still not meeting expectations, and only 30 percent currently offer structured recognition programmes. Generic or poorly communicated benefits are less effective.
“The cost of living crisis is dramatically affecting how people live and progress in their careers,” said Pippa Van Praagh, Perkbox’s vice president of operations. “At the same time, AI is changing the way we work and reshaping what job security looks like, while constant media coverage about economic and workplace pressures has a huge psychological impact.”
She added that it was “not surprising that many people feel they’ve ‘lost the point’ of working beyond the need for a paycheque. This crisis of meaning is being reflected in conversations up and down the UK and it’s why showing value and recognition to employees has never been more critical”.
Research and industry context
Additional resources from Perkbox emphasise ways employers elsewhere have tried to improve retention through recognition and value. Articles on employee recognition online, for example, show that regular peer‑to‑peer praise, linking recognition to company values and celebrating milestones can return improvements in morale and loyalty.
Also, industry studies suggest that financial wellbeing support, clearer reward policies and transparency about progression are increasingly important to younger employees. Organisations that fail to address pay and recognition risk not just turnover but damage to employer brand and challenges in recruiting.
Practical steps for employers to close the value gap
Experts recommend several approaches employers can take to address undervaluation and reduce the risk of resignations:
Implement structured recognition programmes: Establish formal systems for recognising effort and achievement. This could include peer recognition, spotlighting success in internal communications or regular public acknowledgements.
Personalise benefits and rewards: Survey staff to understand what matters most (flexible working, mental health support, financial perks). Create benefit packages that reflect different life stages and needs.
Communicate transparently about value and growth: Make reward and progression criteria clear. Share how bonuses, pay rises or promotions are decided. Use total reward statements so employees know the full value of their package.
Measure employee value and monitor sentiment: Use employee surveys, focus groups or pulse checks to quantify how valued people feel. Track metrics such as retention, internal mobility, absenteeism or engagement scores.
Ensure management training: Train managers to recognize undervaluation and act on it. Empathy, recognition and support should be part of leadership competencies.
Tie recognition to company mission and values: Connect recognition programmes to company values to make it meaningful. Celebrate values‑aligned behaviour not just outcomes.
Invest in wellbeing and financial support: Support for cost of living, financial counselling or perks that address everyday expenses help employees feel their employer takes them seriously.
Calls for urgent action from employers
“Employees want to be recognised first and foremost, but it’s clear that there’s a key place for benefits too. Our data suggests they can be an effective lever for productivity and wellbeing and could be a key tool in the fight against the value exodus,” said Butler.
“The message is loud and clear,” he added. “Employees want to stay and thrive. But without recognition and tailored benefits, they won’t. Employers who close the value gap now will keep their people and future-proof their businesses.”
