With rising employment costs from April 2025, due to National Minimum Wage increases, higher National Insurance contributions, and lower earnings thresholds – businesses are facing significant financial challenges.
We believe retention will be the key. A well-defined Employer Value Proposition (EVP) allows businesses to attract and retain talent, reducing attrition-related costs such as productivity loss and repeated training. Survey results show that high worker satisfaction and loyalty, reflected in strong NPS and CSAT scores, directly contribute to retention success.
The rising cost of employment
In April 2025 all businesses will face the following:
- National Minimum Wage increase to £12.21/hour (+6.7%)
- Employer National Insurance contributions rising to 15%
- Lowering the weekly earning threshold from £175 to £96
Today the employment costs for a workforce of 100 minimum wage employees is approximately £45,760 per week. From April, this will increase to £63,120. An increase of nearly 38%. All employers are going to have to find ways to mitigate these costs.
The hidden costs of attrition
Attrition costs extend beyond wages, including:
- Productivity loss during onboarding
- Training costs for new hires
- Cultural disruption leading to disengagement
Retaining employees for longer can help offset these costs, as workers become more engaged and productive over time.
Worker satisfaction & retention: A case for CSAT and NPS©
Recent data from our survey of 1,723 workers, with an impressive 46.7% response rate, highlights the critical role of satisfaction and loyalty in retention strategies:
- Net Promoter Score© (NPS): 59 – A clear indication that our workers are likely to recommend Major as an employer. This promotes loyalty and advocacy, reducing turnover
- Customer Satisfaction (CSAT): 8.96/10 – A strong metric reflecting worker satisfaction with Major as their employer and their working conditions on our client sites
Why do these scores matter?
- High NPS correlates with loyalty, meaning fewer employees leave for competitors
- Strong CSAT reflects a positive working environment that boosts engagement and productivity
These metrics illustrate how a focus on satisfaction and advocacy help us retain our workers, reducing client costs through retention, fewer training hours and increased productivity.
Retention as a cost saving strategy
An effective Employer Value Proposition (EVP) will be central to holding on to employees for longer. EVP goes beyond salary, encompassing benefits, culture, opportunities, and recognition to deliver a compelling reason for workers to stay.
Key EVP enhancements for employers
Flexible working arrangements
- Implement hybrid or staggered shifts
- Advice: Position flexibility as a default option while balancing operational needs
Career development and training
- Offer clear progression plans and funded (if possible) training opportunities
- Advice: Promote ‘learn and earn’ initiatives to show investment in employee futures
Enhanced benefits and wellbeing support
- Introduce wellbeing packages, mental health support and cost-saving benefits such as cycle-to-work schemes
- Advice: Highlight non-wage perks that improve quality of life
Recognition and retention incentives
- Implement reward systems that celebrate tenure, performance and loyalty
- Advice: Build personalised incentives, such as vouchers, bonuses or extra leave
Stronger workplace culture
- Foster inclusivity, teamwork and employee engagement through regular feedback and communication
- Advice: Use pulse surveys to ensure employees feel valued and heard
EVP evolution
There is evidence to suggest that just as organisations are understanding the value of an EVP, traditional added value benefits are falling short. Recent research by Gartner® of 5,000 employees and 85 HR leader interviews on EVP practices, challenges and solutions indicates that the problem could be too much focus on “what we give employees” rather than “why”. EVPs in 2025 need to evolve to a more human deal centred around the whole person. The aim is generate feelings where employees can say:
- “I feel understood…”
- “I feel autonomous…”
- “I feel valued…”
- “I feel invested…”
- “I feel cared for…”
When employees feel this, retention will naturally follow.
How NPS© and CSAT strengthen retention
A strong EVP is reinforced by regularly measuring worker satisfaction and advocacy. High scores like your NPS of 59 and CSAT of 8.96 demonstrate the impact of:
- Continuous feedback loops: Listening to workers’ voices fosters trust and loyalty
- Proactive adjustments: Using survey insights to fine-tune benefits, culture, and training opportunities
- Shared success stories: Celebrating milestones with workers strengthens engagement.
When businesses act on feedback, they create a virtuous cycle: satisfied workers stay longer, reducing costs and boosting productivity.
By strengthening your Employer Value Proposition (EVP), businesses can mitigate a proportion of the rising employment costs, reduce attrition, and maximise workforce productivity. Investing in EVP, underpinned by strong CSAT and NPS metrics, enhances retention, transforms organisational culture, and positions businesses as employers of choice.
If you’re ready to enhance your EVP, we can provide:
- EVP strategy workshops
- Total Costs of Employment analysis
- Guidance on flexible working and retention initiatives.
Get in touch to future-proof your workforce, start by emailing us today at: sales@major-recruitment.com.