When it comes to retaining and motivating staff, it’s easy to assume that money is the top priority. But when times are tight, salary increases aren’t always possible. Fortunately, our Employee Experience (EX) research reveals a surprising truth: for most people, financial compensation isn’t their primary motivator. So, what is?

While every workplace is different, clear trends are emerging from our growing EX database. Across industries, one theme consistently tops the list: flexibility. Flexibility signals trust and fosters a sense of agency, factors our data shows are strongly linked to job satisfaction.

Here are some cost-effective options that can significantly improve employees’ quality of life:

• Extra leave or birthdays off
• Reduced hours with the same pay
• 4-day work weeks are a popular request in open-ended responses
• Adjustable start times, giving your team more control over their daily routines
• Going beyond remote work to include a home office enablement fund (e.g. for desks, chairs, or monitors)

Professional Development

Professional Development is an area often rated as more important than pay rises. This offers clear mutual benefits: employees grow their skills and career prospects, while employers gain a more capable, motivated team. Development doesn’t need to mean expensive externalcourses. Mentorship programs, job shadowing, and cross-training can foster learning and broaden networks within your team. Investing in development sends a strong signal that you value your staff and want them to grow with you.

Company Culture

Company culture is another powerful, free retention tool. In our surveys, a strong workplace culture is frequently cited as the main reason employees choose to stay or leave a role. Employees who “know how their role contributes to the company” are significantly more likely to report that they “do their best work every day”. Creating a culture of unity, recognition, and shared purpose helps make work intrinsically rewarding, even in the absence of a pay rise.

The case for investment

Of course, many of these options still require some investment through time, planning, or budget, but turnover is far more costly due to constant recruiting, retraining, and rebuilding lost institutional knowledge. A stable, satisfied team not only performs better but becomes a valuable source of advocacy, helping grow your reputation through positive word-of-mouth.

Tailoring your approach

The key is to tailor your approach. Employees at different life stages have different needs: some value sociability, others flexibility, stability, or opportunities for advancement. Avoid defaulting to one-size-fits-all solutions or current trends. Instead, invest in understanding what truly matters to your people.

We’ve shared some broad themes from across our client base, but every organisation is unique. So, what does your team need to thrive? If you don’t know, the best way to find out is to ask.