What: The UK National Living Wage increased to £12.21 per hour in April 2025, a 6.7% rise (Gov.uk, 2025).

So what: For businesses reliant on entry-level staff, this directly increases the payroll budget. The CIPD (2024) estimates replacing a single employee costs £3,000–£5,000. With high turnover, this creates a compounding financial burden.

Now what: This creates a strong financial case for investing in retention. If the business can reduce turnover through a structured development programme, long-term savings will outweigh the upfront investment — as my CBA demonstrates.

What: The Equality Act 2010 requires all UK employers to ensure employees are not discriminated against on any of the nine protected characteristics (Legislation.gov.uk, 2010).

So what: Any new retention policy must be equally accessible to all staff. Failure to comply could expose the business to Employment Tribunal claims costing £8,500–£30,000 (Gov.uk, 2024).

Now what: My proposed solution has been designed with equal access in mind — offered to all staff on flexible schedules, ensuring full Equality Act compliance.

What: The business has an established HR team and a dedicated training budget of £15,000 per annum (project brief).

So what: The organisation has the internal capability and financial resource to design and deliver a retention programme without relying entirely on external consultants.

Now what: My proposed solution leverages this existing strength, making Solution 1 more cost-effective and sustainable than Solution 2.

What: Growing demand among Gen Z and Millennial workers for career development and flexible working (Deloitte, 2024).

So what: The business has an opportunity to position itself as an employer of choice. Organisations investing in L&D see 34% higher retention rates (LinkedIn Learning, 2023).

Now what: My proposed development programme directly capitalises on this opportunity — making it a strategic as well as operational investment.

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As Project Coordinator at Hartfield Retail Group, I have been tasked with investigating the causes of, and solutions to, the organisation's current staff turnover problem. The business is experiencing an annual turnover rate of 28%, significantly above the retail sector average of 22% (CIPD, 2024). This is costing the business an estimated £90,000–£150,000 per year in recruitment, onboarding, and lost productivity costs.

The purpose of this investigation is to analyse the external and internal factors contributing to this challenge, identify and evaluate two potential solutions, and recommend the most appropriate course of action. Throughout this report, I will apply relevant business models and frameworks to ensure my recommendation is evidence-based, financially justified, and aligned with the company's values of employee wellbeing and continuous improvement.

What: The UK government has committed to raising the NLW annually, with the April 2025 rate set at £12.21/hr — a 6.7% increase (Gov.uk, 2025).
So what: For Hartfield Retail Group, employing ~80 staff predominantly on NLW rates, this represents ~£22,000 additional payroll cost per year. At a time of high turnover, every unnecessary departure amplifies this cost further.
Now what: The business must find ways to increase the value it provides beyond pay — such as structured development and career pathways — to retain staff and reduce costly replacements.

What: UK CPI inflation stood at 2.6% in March 2025 (ONS, 2025), and the cumulative cost of living increase since 2020 has significantly eroded real wages for lower-paid workers.
So what: This places increased financial pressure on entry-level staff, making them more likely to seek better-paid alternatives. CIPD (2024) shows 42% of employees who left cited financial pressures as a primary driver.
Now what: A competitive total reward package — including non-financial benefits such as flexible working, development, and wellbeing support — can retain staff without simply matching inflation through pay rises alone.

What: A 2024 Deloitte survey of 22,841 workers found 77% of Gen Z employees would consider leaving if not offered flexible working.
So what: With 45% of Hartfield's workforce aged under 30 (brief), this indicates significant flight risk. Flexibility is now a hygiene factor — not a perk — for younger workers (Herzberg, 1959).
Now what: My proposed solution incorporates flexible scheduling as part of the retention programme, directly responding to this social shift.

What: HR systems such as BambooHR now offer integrated onboarding, performance tracking, and learning management from ~£6–£9 per employee per month (BambooHR.com, 2025).
So what: Implementing a cloud-based HRMS would allow the business to automate onboarding, track development milestones, and identify at-risk staff — shifting from a reactive to a proactive retention approach.
Now what: Solution 1 includes a cloud-based HRMS as a core component, using technology to deliver the programme and generate measurable outcome data.

What: The Equality Act 2010 requires all UK employers to ensure employees are not discriminated against on any of the nine protected characteristics (Legislation.gov.uk, 2010).
So what: Any new retention programme must be equally accessible to all staff. Failure could expose the business to Employment Tribunal claims costing £8,500–£30,000 (Gov.uk, 2024).
Now what: My solution is designed with compliance at its core — offered across all departments on flexible schedules, ensuring full Equality Act compliance.

What: The UK Net Zero Strategy commits to achieving net zero by 2050, with businesses expected to report and reduce environmental impact (Gov.uk, 2021).
So what: A 2023 Glassdoor survey found 67% of workers consider a company's environmental record before accepting a job. High turnover also has an indirect carbon cost through repeated advertising and paper-based onboarding.
Now what: My proposed solution includes a digital onboarding platform — reducing paper use, supporting remote participation, and contributing to the organisation's ESG profile.

Having conducted a thorough PESTLE, SWOT, and CBA, I recommend Solution 1 — the Employee Development and Retention Programme as the most appropriate course of action for Hartfield Retail Group.

The CBA demonstrates Solution 1 delivers a net gain of £15,500 in Year 1, rising to £19,800 annually from Year 2 — compared to Solution 2's net annual cost of £3,600. Over three years, Solution 1 saves the business in excess of £55,000.

My PESTLE identified significant social pressure from the Gen Z workforce (Deloitte, 2024) and technological opportunity through affordable HRMS platforms (BambooHR, 2025), both directly addressed by Solution 1. The SWOT confirmed the business has an experienced HR team and training budget to leverage.

Using Kotter's 8-Step Change Model, implementation will begin by establishing urgency through sharing the turnover cost data with senior leadership, followed by building a guiding coalition before full rollout. This phased approach reduces risk and increases the likelihood of sustained adoption.

The recommendation aligns fully with the organisation's stated values of employee wellbeing and continuous improvement, and ensures Equality Act 2010 compliance through its universal, flexible design.