Late wage rise is driving employee turnover, saying nearly half of UK employers
According to new research by global talent solutions consulting firm Robert Walters, nearly half of the employee turnover in UK employers has increased due to delays in pay for professionals and white-collar workers.
In a survey of UK business leaders, 47% admitted that delayed or reduced wage reviews led to higher employee turnover as organizations work to balance cost control with retention. These findings are amid a broader climate of economic uncertainty, with many companies prioritizing management of the management aspects of market conditions transfers.
Robert Walters UK and Ireland CEO Chris Eldridge acknowledged the pressures faced by employers but warned of the long-term costs. “Businesses are under tremendous pressure to reduce costs, and for many, a salary increase this year is not feasible. In fact, 64% of business leaders see budget constraints and business performance as the main reasons for delaying compensation reviews,” he said.
“However, our research shows that these decisions are not without consequences. Companies are starting to feel this impact, whether it is higher turnover or the gradual decline in motivation.”
The data highlights the growing gap between employer actions and employee expectations. Of the UK employees who did not receive a raise this year, 63% are now actively looking for new jobs. Even among those who did increase, 61% said that this wasn’t what they expected.
This disconnection is helpful for wider disengagement. More than one-third of employers (36%) reported lower morale and less motivation in teams after delayed wage increases – a challenge that was particularly difficult in a competitive labor market.
Chris Eldridge added: “There is a clear message here: Unmet expectations are still driving them to rethink their options even as employees understand business pressures. Using AI-powered tools simplifies the job application process, and professionals can now easily explore new roles.”
Sinead Hourigan, global head of global business and customer experience at CX at Robert Walters, said the company should increase salary discussions in mid-year reviews, especially among workers who feel neglected.
“This is where salary benchmarks and market insights become crucial. Employers need to have conversations with reliable data, not just to justify compensation decisions, but to show fairness and manage expectations effectively.”
To support employers, the newly released Robert Walters 2025 salary survey provides comprehensive insights into current market prices, paid trends and prospects in various areas of hiring. The guide is designed to help businesses engage in evidence-based, transparent conversations about compensation.
With the limitations on what many businesses can offer in terms of compensation, Robert Walters urged employers to only exceed their salaries. Research by the company shows that career development, flexible jobs and internal mobility opportunities are becoming increasingly important to professionals weighing options.
“When wages go up, culture and communication are no more important than ever,” said Sinead Hourigan. “We are seeing more and more employers asking how they can retain their best people creatively and thoughtfully. Successful organizations will be those that balance cost control with real investment in employee experience.”
As the cost of living remains high and employees continue to reevaluate their priorities, the employer’s message is clear: Inertia involves compensation and progress risks triggering expensive talent losses – reasons for recovery will cost more than budget.
