From Hire to Retire: Why It’s Time to Reframe Employee Engagement Around Life Milestones

Businesses are bracing for another turbulent year in 2026, as they assess the effects of the latest Autumn Budget on their bottom line and their people. Amid economic uncertainty and strategic recalibration, one question should sit firmly at the top of the agenda: how do you support your workforce and sustain engagement in the face of change, while ensuring a return on that investment?

The engagement crisis

The challenge isn’t new. Even before the Budget shake-up, employee engagement in the UK was alarmingly low. Gallup’s State of the Global Workplace report ranks British employees among the least engaged and most emotionally strained across Europe, with only 1 in 10 feeling engaged in their work.

This isn’t just a cultural concern; it’s a business-critical issue that impacts productivity, retention, and resilience, with low engagement costing the UK economy £293.5bn annually. In contrast, a highly engaged workforce leads to 78% less absenteeism, 14% higher productivity and 21% less employee turnover.

The message is clear: an engaged workforce drives performance and resilience. To achieve this, businesses must understand what’s working (and what isn’t) so they can implement solutions that truly make a difference.

Right now, the ongoing cost-of-living crisis is amplifying engagement challenges, placing undue stress on employees and increasing expectations of employer support. Yet the current benefit offerings often fall short, with 41% of workers believing their benefits could be better tailored to meet their needs.

With rising costs squeezing budgets and limiting pay increases, organisations need a smarter approach: personalised, milestone-based engagement strategies that reflect employees’ real-life circumstances. This isn’t just good practice; it’s a strategic imperative. 

The limitations of traditional models

Traditional, one-size-fits-all perks don’t meet the needs of a diverse, multi-generational workforce facing rising financial pressures. Our research of over 500 UK employers and 2,000 employees found that only 11% made good use of their benefits, and a disconnect between the support they needed, and the perks on offer was the most significant cause of poor uptake.

Wasted benefits drain money rather than support business sustainability through disengagement, increased attrition, soaring absenteeism, and eroding trust.

Building an engagement strategy around life milestones

Life milestones, such as buying a home, starting a family, or caring for elderly relatives, can significantly impact financial wellbeing, emotional stability, and even career choices. Research has found that two-thirds of employees experienced a major life event in the past two years, and more than half (51%) said these events reduced their ability to thrive at work by at least 25%. Notably, over 80% expressed a clear expectation that employers should offer support during these times.

Effective support isn’t limited to monetary benefits. Offering flexibility through remote working opportunities could increase economic output in the UK by £23.1 billion.

Supporting employees through these transitions is essential for retaining talent, sustaining workforce resilience, and fostering a genuine culture of care. Organisations that embrace personalised programmes tailored to employees’ real-life circumstances see measurable results - Gallup reports that highly engaged teams deliver 23% higher profitability, alongside lower absenteeism and turnover.

Here are three ways you can embed a milestone approach into your engagement strategy:

1. Understand the life events that shape employee needs
   

Start by building a view of the life events that most affect employees’ wellbeing and performance. Anonymised surveys, feedback cycles, and HR data, such as leave requests and benefit usage, can highlight key milestones, including parenthood, housing changes, debt, or caregiving, which businesses can use to map personas of the team.

2. Design a modular offering that directly supports these milestones
   

Businesses can then use these personas to create modular benefits packages that allow employees to flex between options that best suit their circumstances. From mortgage advice sessions for first-time buyers to discounts on home essentials for growing families, flexible benefits ensure employees have access to what will help them the most, nurturing resilience, driving loyalty and boosting engagement.

3. Personalised communication
   

An effective communication strategy ensures the offerings reach the right people at the right time. Focus on clear, consistent messaging that communicates what support is available and when it might matter to them. Remove barriers to accessing support with straightforward explanations of how each benefit works, so people can recognise themselves in the examples without feeling profiled.

A future-proof strategy that evolves with your business

The payoff is clear: milestone-based engagement reduces attrition, boosts productivity, and delivers measurable business returns. Organisations that adapt and tailor communication and resources to employees’ needs and life stages create resilient, inclusive environments that foster trust and loyalty. By meeting employees where they are, companies build a culture that enhances wellbeing and drives long-term performance.

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