New research from Perkbox on employee value reveals a looming retention crisis as over half of undervalued UK workers are planning to quit in 2026, in what is being called the “Great Value Exodus.”

UK Faces Potential Workplace Value Exodus in 2026, New Study Finds

London, UK – A new study commissioned by global employee benefits platform Perkbox has revealed a concerning trend in UK workplaces, with a potential Value Exodus on the horizon for 2026. The research, conducted among 4,000 UK employees for the Perkonomics Report, found that a staggering 54% of undervalued employees are planning to seek new opportunities next year. This crisis of undervaluation is having a devastating impact on retention, productivity, and overall wellbeing.

According to the report, 42% of employees feel undervalued in their current roles, resulting in a significant decline in productivity and retention rates. The study also found that among the general workforce, 34% are considering leaving their jobs next year, with this figure significantly higher among those who feel overlooked. This Value Exodus highlights the growing gap between employee expectations and the Employee Value Proposition (EVP) provided by employers.

Doug Butler, CEO of Perkbox, explained the impact of employees feeling undervalued: “Employees’ perception of how they are valued by their employers understandably impacts their morale and, in turn, engagement and retention. Focused strategies and tools that foster cultures where all employees feel valued are worthwhile investments of time and resources for businesses in our current social and economic environment.”

The Value Gap and Its Consequences

The research also revealed a critical action gap between employers and employees. While both parties recognize the importance of feeling valued, execution is lacking. This gap has become especially pressing due to rising living costs, ongoing skills shortages, and the economic outlook for 2026, making retention and engagement more crucial than ever. Additionally, many employees are staying in their current roles despite feeling undervalued, largely due to financial pressures and fears over job security. However, this trend could potentially compound the problem instead of solving it.

The study also found that public sector employees feel less valued than their private sector counterparts, with scores of 6.40 and 6.92 out of 10, respectively. Large companies with over 1,000 employees also scored the lowest on employee value, at 6.21, suggesting that recognition may get diluted at scale. Furthermore, the report revealed that 40% of employees believe their employers are not doing enough to make them feel valued. The consequences of feeling undervalued are significant, with motivation dropping by 57%, and morale and enthusiasm declining by 50% and 47%, respectively. Employers also recognize the impact of undervaluation, with 64% linking it to lower productivity and 53% blaming it for retention issues.

Pippa Van Praagh, Vice President of Operations at Perkbox, commented on the current situation: “The cost of living crisis is dramatically affecting how people live and progress in their careers. At the same time, AI is changing the way we work and reshaping what job security looks like, while constant media coverage about economic and workplace pressures has a huge psychological impact. It’s not surprising that many people feel they’ve ‘lost the point’ of working beyond the need for a paycheck. This crisis of meaning is being reflected in conversations up and down the UK, and it’s why showing value and recognition to employees has never been more critical.”

Recognition and Benefits: A Solution to the Value Gap

The research also revealed a clear path to closing the value gap. Recognition is the top driver of feeling valued, cited by 53% of employees and 60% of employers. However, only 30% of workplaces currently offer recognition programs. The study also found that 79% of employees would feel more valued with a tailored benefits package, and 68% believe that better benefits would boost productivity, with this number rising to 84% among 25-34-year-olds.

The report also highlighted the top three benefits employees are looking for: financial wellbeing support (35%), recognition and reward programs (30%), and health and wellbeing initiatives (29%). Employers also recognized these priorities, but many stated that they lacked the resources to deliver them.

Butler emphasized the importance of recognition and benefits in retaining employees: “Employees want to be recognized first and foremost, but it’s clear that there’s a key place for benefits too. Our data suggests they can be an effective lever for productivity and wellbeing and could be a key tool in the fight against the value exodus.”

Despite the current crisis, there is still hope as most employees reported a strong sense of belonging within their organizations. The problem lies in whether their organizations are showing that they value their employees.

In conclusion, Butler stated: “The message is loud and clear. Employees want to stay and thrive. But without recognition and tailored benefits, they won’t. Employers who close the value gap now will keep their people and future-proof their businesses.”