More than a third of UK workers are considering leaving their job in 2026, as employers face renewed pressure to keep staff engaged through pay, flexibility and benefits that feel meaningful day to day.
In polling of 2,000 UK employees, 34 percent said they were considering quitting this year. The same research found more than half of workers who felt undervalued planned to leave unless recognition and rewards improved, pointing to the risk that retention issues could worsen if employers misjudge what employees want from their workplace.
The study, commissioned by Capital on Tap, a provider of business credit cards and spending tools for small- and medium-sized enterprises, asked employees which perks had the biggest impact on their loyalty and morale. The results suggest the most valued benefits are those that ease financial pressure and support work-life balance, rather than those designed primarily to boost social culture.
Pay, flexibility and time off ranked highest
Bonuses and financial perks ranked joint first as the benefit most likely to influence loyalty and morale, selected by 38 percent of employees. Flexible working hours also ranked joint first on 38 percent, reinforcing the extent to which control over working patterns has become part of what many employees now expect from a good job.
Extra holiday followed closely behind on 35 percent. With many workplaces still dealing with fatigue, high workloads and burnout risk, additional leave may be seen less as a luxury and more as a practical way to recover, manage caring responsibilities or simply protect personal time.
Free food and drink was selected by 30 percent of workers, while private health or dental care was chosen by 27 percent. These benefits are often presented as lifestyle extras, but the results suggest employees may be judging them through a more practical lens, especially if they offset everyday costs or reduce barriers to accessing healthcare.
Recognition from managers sat in the middle of the ranking at 24 percent, followed by mental health support at 23 percent and wellbeing days at 21 percent. Taken together, these results suggest employees still valued emotional support and feeling seen at work, but were more likely to link loyalty to tangible benefits that affected their finances and time.
Clear career progression was selected by 18 percent, indicating that development mattered to some employees, but it was not as widely seen as a loyalty driver as pay, flexibility and extra leave. That may reflect a degree of scepticism among workers who have seen progression promises stall during periods of restructuring, tighter budgets or slower hiring.
Workplace socials ranked lower at 15 percent. Team-building trips away and learning and development budgets were both selected by 14 percent, while company stock options came in at 13 percent. Mentorship programmes were ranked last on 11 percent.
Why practical perks may matter more in 2026
The ranking points to a simple message for employers, people are more likely to stay when the benefits they receive have a clear and immediate impact on their lives. Financial perks and bonuses may feel like direct recognition, especially for employees who believe their workload has increased or their pay has not kept pace with living costs.
Flexible working hours also appear to be closely tied to morale, likely because they help employees manage commuting time, childcare, appointments and personal routines. In many roles, flexibility is no longer seen as a special arrangement but as part of what makes a job sustainable over the long term.
Extra holiday may also be carrying greater weight because it gives employees control over recovery time. Even when employers provide wellbeing resources, some staff may see time off as the most effective wellbeing benefit, because it reduces pressure rather than simply helping them cope with it.
The lower ranking of workplace socials does not mean employees do not value connection with colleagues. But it suggests that organised social activity is less likely to influence whether someone stays in their job than whether they feel fairly rewarded, trusted to manage their time and given enough space to rest.
The risk of investing in the wrong retention levers
Many organisations invest heavily in culture initiatives, social events and occasional perks, particularly when budgets are tight and pay rises are difficult to fund. But the survey suggests there is a risk that these efforts miss the point if employees view them as peripheral to the factors that shape loyalty.
That does not mean employers should abandon social culture altogether. Workplace relationships can support engagement, collaboration and psychological safety, and a positive culture can help employees feel part of a team. But the results suggest social perks may work best as a complement to strong fundamentals, rather than as a substitute for them.
The findings may also serve as a reminder for HR teams that retention is not only about introducing more benefits but also about ensuring the offer feels fair and credible. A generous benefits list can still fall flat if employees believe pay is not competitive, workloads are unsustainable or managers fail to recognise effort.
How employers can respond without relying on gimmicks
Employers looking to reduce turnover risk may need to focus on a smaller number of high-impact changes. Reviewing bonus structures, pay progression and reward policies can help ensure financial recognition is not seen as arbitrary or inconsistent across teams.
Flexibility can also be strengthened without major cost. Clear guidance on flexible hours, predictable scheduling, realistic workload planning and manager training can all help employees feel they have genuine autonomy rather than flexibility in name only.
Time-off policies are another area where employers can make practical improvements. Encouraging staff to take annual leave, limiting after-hours messaging and ensuring teams are resourced to cover absences can help leave feel restorative rather than stressful.
Recognition from managers ranked mid-table, but it remains an area where many organisations can improve quickly. Recognition tends to have the most impact when it is specific, timely and linked to meaningful outcomes, rather than delivered as a generic thank you message. Employees are also likely to notice whether recognition is consistent across teams, or whether it depends on who someone’s manager happens to be.
The research was published by Capital on Tap as part of its Social Culture Report, which examined how UK employees felt about workplace socials, inclusivity and the factors shaping engagement at work.
