Talent Retention and Disengagement – Overcoming the Silent Business Drain

CIPD’s Good Work Index 2025 shows 34% of employees intend to leave their workplace in the coming months due to issues such as poor working relationships, work-life balance, or mental health.

Could yours be one?

In the face of rising recruitment costs and high competition for talent in the UK, organisations cannot afford to ignore the stability of their permanent workforce – or else risk a silent drain on resources.

Why Workforce Retention Matters

ACAS has found that workforce conflict costs UK businesses roughly £28.5bn per year, including almost £12bn in resignation costs. A 2024 Culture Amp report also found that replacement costs for employees range from 30% to 200% of their salary.

Compounding this, a recent CIPD report shows 69% of businesses report tougher competition for well-qualified talent, while 56% are struggling to retain talent in the first place.

Strong retention is no longer a benefit – it is a business imperative to protect your bottom line. By ignoring the root causes of high turnover, businesses risk allowing issues to grow and amplify. The result? Spiralling costs as organisations are forced to react and quickly plug talent gaps.

The Actions to Take Now

Our survey of 2,000+ business leaders shows that only 1 in 10 workers feel engaged. Compounded by low retention and weak organisational culture, this can systemically drain business performance.

Here is our playbook of actions you can take today:

1) Map where you’re leaking talent

Are there specific teams or areas of your business with retention or resignation issues?

By identifying problem areas, businesses can focus on steps to restore performance, whether through additional support, resources, or an outside perspective.

2) Monitor industry trends to anticipate talent and skill needs

By staying ahead of the curve, organisations can better prepare their permanent workforce for the skills they need now and in the future.

For UK universities, seasonal fluctuations are a key challenge. To overcome this, we start planning several months in advance to assess opportunities to upskill current staff or roles that will require specialist hiring.

3) Build an agile permanent recruitment setup

HR teams need to respond quickly to talent challenges or sudden workforce-flexing needs. Sometimes, an external recruitment partner can bring the scalability, efficiency and hiring scope required, especially when facing impending hiring deadlines.

When Crown Holdings launched their new facility and required a large-scale recruitment drive for permanent staff, Adecco stepped in. As most vacancies were niche roles with precise skill requirements, the team focused on identifying candidates with transferable skills in similar industries and professions. Ultimately, we onboarded staff in stages with comprehensive training provided. Speaking about the strategic partnership, the client said, “The hard work put in by the teams at Adecco allowed us to hire on time and in full at each stage of the project, and we were thrilled with the results.”

4) Involve employees in co-creating improvements

Current employees are the best resource for diagnosing workplace cultural issues, engagement, and what needs to change.

Try introducing employee surveys and ask managers to meet with workers one-on-one. Crucially, ensure you show employees that their feedback actually leads to real change – internal communications built on clarity and transparency can be a helpful first step.

5) Make mental health a priority

33% of business leaders rank mental health as the biggest threat to business growth, yet it is often overlooked in strategy.

Managers are closest to their team members and well-positioned to intervene if they notice an employee struggling. But to help, they need the proper training. They also need to feel confident that their organisation will commit to helping an individual when they make recommendations. To support this, organisations need a robust mental health strategy and escalated support systems in place.

6) Encourage cross-team collaboration

Silos and poor communication slow delivery and frustrate teams. Meanwhile, a CIPD report shows that employees who have positive, open communication at work self-report an average 26% improvement in job performance.

Establishing shared goals, promoting open communication and building trust through joint projects can all help to break down team barriers. Leadership must also stay ahead of technology to ensure it is used collaboratively across their organisation.

7) Add peer mentoring and stronger onboarding

Candidate support shouldn’t end after week one. Regular check-ins for new permanent staff will help keep them motivated and focused on the future within your organisation.

For a UK energy system operator, we overcame hard-to-source SCADA skills by building a permanent hiring model that promoted strong training, upskilling, and future career opportunities.

8) Promote internal mobility

Prioritising internal staff for new roles and opportunities shows you value them and want to retain their valuable experience within your organisation.

9) Conduct stay interviews

Often, organisations conduct exit interviews only after an employee has already decided to leave. While feedback at this stage can be helpful, the cost of losing them cannot be negated.

Instead, consider regular “stay” interviews to gather detailed data on what employees enjoy most about your workplace, as well as what needs improvement or should be introduced to make them more likely to stay.

For Adecco clients, more informed data regularly leads to better decisions. This included a UK pension provider who were experiencing high attrition. Through a data-led approach, we rebuilt the service desk, established a new work culture, and improved worker engagement. This led to considerably higher retention rates and lower costs for the client.

10) Fix workload and flexibility

A CIPD report shows 67% of organisations rate heavy workloads as the top cause of stress-related absences.

Short-term fixes include better handovers between staff and training managers, and training managers to spot overloads and take action. In the longer term, you may need to take a more strategic overview of teams and where permanent reinforcements may be required.

11) Recognise and celebrate employees

Timely appreciation of employee efforts and achievements can boost morale. Simple actions, such as team lunches and prizes for top performers, can go a long way to making your workplace one where employees feel valued.

These eleven pillars underpin a resilient permanent workforce strategy – but execution can be complex.

With the right recruitment partner in place, you can turn plans into results.

Secure your competitive advantage

Workforce resilience isn’t just about managing people; it’s about creating lasting competitive advantage – and the talent decisions you make over the next 12 months are crucial.

Those that act now – building resilient, permanent talent strategies, investing in future-ready capabilities, and creating cultures that attract and retain top performers – will define the competitive landscape for the next decade.

Ready to turn your Permanent Recruitment Strategy from reactive to proactive?

Book a free consultation to assess your 12-month permanent hiring strategy and see where you’re exposed.

Our clients typically identify opportunities for cost savings averaging 20%, achieved through reduced attrition, better processes, and a strategic approach to future needs.

Book your complementary strategy session today.