Why Attracting Loyal Staff is More Than Just A Competitive Salary

A competitive salary might still turn heads, but it's no longer the key to long-term staff loyalty. Today, the modern workforce is driven by a much wider set of priorities. Employees today want to feel valued, supported and understood, both professionally and personally. They seek out companies that reflect their values, prioritise wellbeing and offer more than financial compensation.

In fact, a recent MetLife UK study found that 69 percent of employees would feel more loyal to an employer who visibly prioritises their wellbeing. This staggering statistic reflects a shift in workplace culture where job satisfaction is determined by more than just take-home pay.

As a result, businesses that fail to look beyond salary will quickly fall behind in a market where skilled professionals have more choices than ever. Keep reading to find out about why investing in loyal staff will do more than keep your employee turnover rate low.

A Broader Benefits Offering

Going back to what was said at the start, staff expect their employer to care about their wider needs. Benefits that support health, personal time, and mental wellbeing carry as much weight as pensions and pay reviews. Offering meaningful perks shows employees they are more than just a number in a payroll system.

Among those perks, health coverage is rapidly becoming one of the most influential. Providing access to private healthcare is not just about treatment when something goes wrong. It signals that the company is invested in its people’s long-term wellbeing. For small and medium-sized businesses, the decision to offer health insurance for SMEs is often a turning point. It improves staff morale, reduces absenteeism and gives the business a competitive edge in recruitment.

Private healthcare also addresses growing frustrations with NHS waiting times. With over 7.5 million people on NHS treatment waiting lists in 2023, private insurance offers employees faster, more flexible access to care. For employers, this translates into fewer disruptions, faster recoveries and less strain on small teams.

What Employees Say They Want

Every business wants to know what truly motivates job seekers and current staff. According to CIPHR’s 2024 Employee Benefits Survey, private health insurance is among the most desired workplace benefits, with 62 percent of employees listing it as a top priority. Flexible working followed closely at 59 percent, and enhanced holiday allowance appealed to nearly half of those surveyed. Mental health and wellbeing support was highlighted by 44 percent, proving that traditional bonuses are no longer the most effective incentives.

These numbers reflect a changing dynamic. Employees are no longer impressed by perks that don’t apply to their day-to-day needs. Instead, they are choosing employers who deliver relevant and personalised support. Health insurance that covers not only medical emergencies but also mental health services, diagnostic tests and virtual GP appointments can have a major influence on recruitment and retention outcomes.

The Importance of Flexibility

A flexible working model was once seen as a luxury. Now it is a baseline expectation. McKinsey research found that 87 percent of workers consider flexible working when deciding whether to accept or stay in a role. For employers, this highlights the need to adapt working arrangements to the individual needs of their team members.

Flexibility builds trust and improves employee satisfaction. Whether it is the ability to start earlier, work remotely or take time off without guilt, these options make staff feel respected. They also reduce burnout and support people in managing responsibilities outside of work, which is a rigid approach to hours and locations, risks alienating staff who are otherwise committed to their roles.

Recognition, Growth and Safety

Salaries might get someone through the door, but recognition and growth opportunities encourage them to stay. People want to feel like their efforts are noticed and appreciated. A 2024 study by Workhuman found that employees who regularly receive recognition are 41 percent more likely to remain with their employer.

Equally important is the opportunity for development. Staff are likelier to stay loyal when they see a path forward. This includes access to training, mentoring and internal progression. Not every employee seeks promotion, but most want to feel like they are growing. Psychological safety is a vital part of that equation. When people feel safe to contribute ideas, ask questions and be themselves, they become more invested in the business and its future.

The High Cost of Turnover

Losing staff is expensive. How much it costs might come as a shock. According to Oxford Economics, replacing an employee in the UK can cost over £30,000. Why does it cost this much? The figure includes recruitment costs, onboarding time and the lost productivity of every departure. For small businesses, the impact is even greater, as each person often plays multiple roles within the team.

Companies that invest in better benefits consistently reduce turnover. Health benefits, in particular, have been shown to increase retention because they offer real value. Employees managing ongoing health conditions are unlikely to leave a job where their medical needs are supported unless they are confident another employer can offer the same.

How Health Benefits Support Loyalty

When employees know that they can rely on their employer for essential support, they are more likely to commit to the business. This is especially true in the case of healthcare. Absenteeism costs UK businesses hundreds of pounds per employee each year, and presenteeism, working while sick, has even higher productivity costs over time.

Health insurance tackles both issues. It allows staff to access treatment quickly, reducing downtime. It also gives employees confidence that their health matters, which boosts morale and encourages long-term commitment. Preventative services, mental health support and regular screenings help maintain a healthier workforce, reducing overall disruption.

Building a Culture That Retains Staff

Culture is one of the most powerful retention tools available. A business that fosters openness, respect, and inclusion creates an environment where people want to stay. Culture is not created by mission statements or occasional team lunches. Although these are nice, culture is shaped in the small details such as the daily interactions, leadership behaviours, and policy implementation.

Good communication plays a central role in this. Employees need to understand what benefits are available and how to access them. As such, employers should regularly share updates, answer questions and invite feedback on what is working and what needs to change. If a benefit is offered but poorly explained, its value can be lost.

Measuring What Matters

Loyalty is built over time, but it can be measured in very practical ways. Businesses should track metrics like employee satisfaction, turnover rates, absenteeism and recruitment costs. These figures help demonstrate which parts of a benefits strategy are working and where improvements could make a difference.

Regular staff feedback sessions or surveys provide valuable insight into what employees appreciate most. When businesses make changes in response to staff input, it sends a powerful message that people are being heard and valued. That message, more than any one perk or policy, builds real loyalty.

The Case for Investing in Your People

Attracting loyal staff requires a broader mindset. Pay still matters, but it is only part of the picture. Employees stay with businesses that support their health, allow them to grow, treat them fairly and give them reasons to care about the company’s success.

When employers deliver on those expectations, they build a loyal and highly motivated workforce. Retaining staff saves time, protects institutional knowledge, and creates a positive working atmosphere that benefits the entire business.

Make Loyalty Your Business Advantage

Are you hoping to attract and retain skilled, committed people? If the answer is yes, then start by looking beyond salary figures. The real value lies in creating an environment where staff feel supported and secure.

Start with a clear, consistent benefits strategy. Keep listening. Keep improving. When staff feel looked after, they stay, and when they stay, your business grows stronger.