A staggering 65 per cent of UK employees are either moving, might, or will definitely seek new employment in the next 12 months.

Employees Feel Undervalued but Empowered to Leave

A significant portion of employees (1 in 4), feel undervalued in their current roles. This feeling of underappreciation is further compounded by the fact that 65 per cent of employees are contemplating changing employers within the next 12 months. This statistic highlights a potential retention issue that organisations must address to maintain a stable workforce. While 54 per cent of employees believe their compensation is fair compared to similar roles in the industry, 22 per cent are not confident that their employer ensures pay equality regardless of gender. This highlights the ongoing challenge of achieving full pay transparency and equity within organisations.

The retention of talent has emerged as a primary concern for certain sectors and businesses. Employees increasingly feel empowered to depart from roles that no longer captivate their interest or present future prospects. We have observed phenomena such as the Great Resignation and Quiet Quitting, both significantly challenging managers. Even in the current job market, where hiring freezes, layoffs, and limited pay increases are prevalent, retaining high-quality talent remains a pressing issue.

Managers play a pivotal role in influencing retention by providing employees with a clear career pathway and opportunities for development and growth. Regular check-ins and career discussions enable managers to identify development needs, skill gaps, and mobility options. However, the success of talent development initiatives hinges on the commitment and buy-in from managers.

Choice of Valued Benefits and Personalisation

With people working longer and the nation facing a cost-of-living crisis, it becomes clear why retirement savings have become the most valued benefit for both the UK’s Generation X and Baby Boomer generations. Generation Y expressed an evident appreciation for work-life balance and career development opportunities. Many of this generation also have a side job, so employers must be creative in offering opportunities that keep these entrepreneurial-minded individuals engaged and motivated. Lengthy waiting times within the NHS have impacted the speed of diagnosis and medical treatment. Delays in medical interventions can lead to worsening conditions, preventable complications, and an increased risk of poor outcomes. However, despite this backdrop, medical coverage/health insurance does not seem valued by Generation Y.

57 per cent would be willing to sacrifice existing benefits for a better choice of benefits. This willingness stems from the desire for greater personalisation and alignment with individual needs and priorities. Employees seek benefit packages that resonate more closely with their personal circumstances, such as enhanced retirement savings options or better work-life balance initiatives. By tailoring benefits to better meet these diverse needs, employers can increase employee satisfaction and retention. Factors like gender, age, social and economic class all play a role in providing benefits for the right employee at the right time.

Our study uncovered specific benefits, such as savings/insurance plans (46 per cent), women’s health support (41 per cent) and mobility perks (33 per cent), are more valued by those with negative wellbeing. This indicates that targeted benefits could play a crucial role in improving satisfaction for employees struggling with their wellbeing.

Demand for Private Healthcare

Lengthy waiting times within the NHS have impacted the speed of diagnosis and medical treatment. Delays in medical interventions can lead to worsening conditions, preventable complications, and an increased risk of poor outcomes.

The demand for private healthcare has never been greater, but the impact of escalating costs has led to a 32 per cent increase in medical spend according to Aon insights.  Aon’s Health Risk Analyser empowers clients to identify high-risk cohorts within their employee population, enabling data-driven and real-time strategies to maximise value from their healthcare spend.

Conclusion

The findings from Aon’s Employee Sentiment Study 2025 highlight the importance of understanding and addressing the diverse needs of employees across different generations. Employers must focus on offering personalised benefits, investing in skills development, ensuring pay transparency, and supporting employee wellbeing to retain and engage their workforce effectively. By aligning their human capital strategies with these insights, organisations can create a more motivated, satisfied, and productive workforce.

If you would like to find out more, please contact us at [email protected]

Authors:

Charlotte Schaller – Partner, Head of Aon Assessment EMEA, Aon

Charlotte has worked for Aon Assessments and its predecessor cut-e since 2014 in various consulting and leadership roles. She has 25 years’ experience within HR, Talent assessment and occupational psychology with a proven track record across the full Talent Lifecyle.

Amy Froude – Executive Leader, Aon

Amy Froude serves as an Executive Leader and is responsible for Aon UK’s Health and Risk consultants. For more than 24 years Amy has been a prominent figure within the Health Solutions insurance sector and over the course of the past three years has expanded her leadership profile to the wider insurance industry.