UK Faces Potential Workplace Exodus Due to Employee Value Crisis
A new study commissioned by global employee benefits platform Perkbox has revealed that the UK is on the brink of a workplace value exodus. The research, conducted among 4,000 UK employees for the Perkonomics Report, found that 42% of employees feel undervalued at work, with 54% of them planning to seek new opportunities in 2026.
According to Perkbox CEO Doug Butler, the perception of being undervalued by employers has a direct impact on employee morale, engagement, and retention. This value crisis is sweeping through UK workplaces, with devastating consequences for productivity and wellbeing.
The study also highlighted a critical action gap between employers and employees when it comes to recognizing the importance of feeling valued. With cost-of-living pressures, ongoing skills shortages, and the 2026 outlook making retention and engagement more vital than ever, this gap is cause for concern.
The research showed that public sector employees feel less valued than their private sector counterparts, and larger companies with over 1,000 staff scored the lowest on employee value. Additionally, 40% of employees reported that their employers are not doing enough to make them feel valued. This lack of recognition and appreciation has led to a 57% drop in motivation among undervalued employees, as well as a 50% drop in morale and a 47% drop in enthusiasm.
Pippa Van Praagh, Vice President of Operations at Perkbox, attributed the value crisis to the cost of living crisis, the impact of AI on the workplace, and constant media coverage of economic and workplace pressures. She emphasized the importance of showing value and recognition to employees in light of these challenges.
The research also revealed a possible solution to the value gap – recognition and benefits. While 53% of employees and 60% of employers cited recognition as the top driver of feeling valued, only 30% of workplaces currently offer recognition programs. Additionally, 79% of employees said they would feel more valued with a tailored benefits package, and 68% believe that better benefits would boost productivity.
Employees are specifically calling for financial wellbeing support, recognition and reward programs, and health and wellbeing initiatives. Employers echo these priorities, but many lack the resources to deliver them.
Butler emphasized the importance of closing the value gap now to keep employees and future-proof businesses. Despite the current crisis, there is still hope as most employees report a strong sense of belonging to their organizations. The key issue is whether their employers are showing that they value them.
In conclusion, the message is clear – employees want to stay and thrive, but without recognition and tailored benefits, they will look for opportunities elsewhere. Employers who take action to close the value gap will not only retain their employees but also future-proof their businesses.
The Perkonomics Report was not distributed by any specific organization or platform.
