Nearly half of UK employees (49%) say they would feel more motivated to leave their jobs once the economy improves, according to Workforce Pulse 2024, an annual study conducted by European HR software company for SMEs, Personio.

Personio’s research surveyed 2,000 workers and 1,000 HR decision makers in the UK. It showed that over half of employees (53%) plan to look for a new job in the next 12 months regardless of the economy, but 70% of this group feel spurred to do so by improving economic conditions.

Meanwhile, many businesses are aware that a wave of resignations may be on the horizon, but others may be set for a surprise. Almost half of employers (49%) expect employee churn to increase over the next twelve months, while 25% each expect churn to decrease or stay the same.

Lenke Taylor, Chief People Officer at Personio, said in a press release, “Persistent talent shortages mean hiring and keeping the best people is already a challenge for businesses today. And our Workforce Pulse report suggests that retention is about to become even tougher as economies improve. To effectively navigate these challenges, employers need to be proactive. Now is the time for organisations to look beyond talent strategies for the here and now, and think long term about how they can sustainably invest in employee experience, and ultimately their talent retention.”

Meanwhile, 60% of employers are concerned that employee engagement has deteriorated over the past year. The data suggests a lack of fulfilment at work could be triggering low engagement and a potential retention drop off. Nearly half of employees (47%) stated that work was no longer a priority for them in life, while a third (33%) would be willing to take lower salaries in favour of a more interesting and engaging job.

Personio also found 45% of employees say they want to switch to working in a new career or industry.

The research also highlights a clear path for organisations wishing to retain talent. Six in ten employees (60%) cite a good work-life balance as a top priority in their job, only ranking below good salary/bonus (65%). Almost half (47%) feel that work is not a major priority for them in life.

At the same time, low levels of stress (45%) and a friendly company culture (44%) are preferred to career development factors such as opportunities to progress (32%) and making an impact (27%).

Taylor continued, “Organisations should recognise that employees’ priorities greatly impact their relationship with work. The best employers are listening to what is changing for their workforce and are taking meaningful steps to unlock employee engagement.”

“This could be through workplace policies, holistic benefits packages or career and skills development programmes,” Taylor said. “Employers that work with their employees to drive greater engagement will be better placed to navigate the latest shifts in workplace attitudes and needs as talent and productivity race up the agenda once again.”