The real economics of keeping great people.

Stayconomics Brief - Edition 8

Written by Emma Olie | Aug 31, 2026, 9:07:47 PM

👋 Welcome

The workplace conversation shifted this week from more to more relevant.

Employees are not asking employers to add another generic wellbeing initiative. They are prioritising financial stability, healthcare protection, flexibility and security. At the same time, organisations are investing rapidly in AI, yet many still struggle to convert individual productivity gains into measurable business value.

These are not separate challenges. They point to the same leadership question: Are we investing in what genuinely helps people perform, stay and grow?

For HR leaders, the opportunity is clear. Use better data to understand what employees value, create a more relevant total-rewards experience and introduce technology with a defined human outcome — not simply because the technology is available.

Here is what matters this week.
— Emma Olie, Co-founder of SideUp

📊 This Week in Workplace Data

 

52% / 46% / 45%

Across ten countries, employees identified compensation (52%), work–life balance (46%) and job security (45%) as the leading reasons to stay with an employer. Retention is increasingly driven by tangible value, stability and sustainable work — not isolated perks.

Source — McKinsey HR Monitor 2026

Fewer than 35%

Fewer than 35% of employees report high overall wellness, despite years of organisational investment. Gartner says employees increasingly value medical protection and flexible financial benefits, including Lifestyle Spending Accounts, over many traditional one-size-fits-all wellbeing programmes.

Source — Gartner, Employee Total Rewards Preferences 2026

80% vs. 37%

While 80% of respondents say AI has improved their individual productivity, only 37% report any positive contribution to enterprise EBIT. The technology is creating personal efficiency faster than organisations are redesigning work to capture its value.

Source — McKinsey, The State of AI 2026

The takeaway: Employees want stability and relevance, while employers need measurable impact. The common denominator is better design: benefits and technology should respond to real needs, produce usable data and lead to action.

🌍 Workplace Headlines

1. Employee Rewards Preferences Shift Toward Stability (Gartner)

A Gartner survey of 10,055 employees found that total-rewards preferences have moved toward financial security, medical protection and long-term wealth creation. Paid time off, work–life balance and individual pay differentiation became relatively less important, while flexible financial benefits grew in relevance.

Gartner's recommendation is especially significant for benefits leaders: remove underused programmes transparently and redirect investment toward flexible solutions, such as Lifestyle Spending Accounts, that employees can apply to their individual circumstances.

Read the Gartner announcement →

2. Pay and Benefits Lead Global Employment Decisions (McKinsey)

McKinsey's 2026 HR Monitor shows that compensation, work–life balance and security now dominate employees' decisions to remain with an organisation. A related analysis published this week found that remuneration and benefits are also the leading drivers of job changes globally, cited by 47% of respondents.

The implication for talent leaders is straightforward: the employer value proposition must be visible, practical and credible before a candidate joins. A benefits package that reflects real-life needs is no longer only a retention mechanism; it is part of the recruitment strategy.

Read the McKinsey HR Monitor →

3. AI Productivity Is Rising Faster Than Enterprise ROI (McKinsey)

McKinsey's global AI survey found that nearly nine in ten organisations regularly use AI in at least one business function, and 80% of respondents report individual productivity gains. Yet only 37% report a positive EBIT contribution, while just 6% qualify as AI high performers.

The organisations producing stronger results are not simply adding AI to existing processes. They are redesigning workflows, measuring impact and connecting technological adoption with leadership, operating-model and workforce decisions.

Read McKinsey's State of AI 2026 →

🌎 Around the World

🇺🇸 United States The Treasury and IRS issued proposed regulations for employer contributions to Trump Accounts. Employers may contribute up to $2,500 per year on a tax-free basis for an employee or their dependants, but programmes must operate under a separate written plan and satisfy nondiscrimination requirements. Comments are due by 25 September 2026. Read the IRS update →
🇬🇧 United Kingdom HMRC is asking employers to prepare now for the phased introduction of mandatory real-time payrolling of Benefits in Kind. From 6 April 2027, phase one will cover company cars, car and van fuel, vans and medical benefits; most other benefits will follow in April 2028. Employers should inventory their benefits, review payroll software and communicate early with employees. Read the HMRC Employer Bulletin →
🌐 Global People analytics is moving beyond retrospective dashboards toward connected workforce intelligence. The emerging model links workforce, skills, performance and business data so leaders can identify talent gaps and retention risks, evaluate responses and connect decisions directly to hiring, learning and internal mobility. Read the SAP analysis →

📚 Featured Articles

 

🎙 Podcast of the Week

The HR Technology Trends 2026: AI is Expanding Jobs, Not Replacing Them

This week's episode looks at why AI adoption in HR is correlating with workforce growth rather than cuts, and what that means for how HR teams plan headcount and skills for 2026.

🎧 Listen on Spotify →

📅 Events & Webinars

Webinars

ONLINE · 8 SEPTEMBER 2026 · 1:00 PM (UK)

High Performance Cultures: It's Not Rocket Science… It's a Piece of Cake

Becky Ray
CEO, Culture Kick

SideUp and Culture Kick host this 60-minute session on the Culture Cake Framework — five simple layers for building trust, psychological safety and better everyday communication, drawn from Becky's 25+ years in high-risk operational industries.

Register free →

18 SEPTEMBER 2026

Education Savings and Student Loan Repayment

SideUp teams up with TIAA / ScholarShare to unpack how employers can support employees with education savings and student loan repayment benefits.

Registration link to be shared soon.

ONLINE · 22 SEPTEMBER 2026 · 11:00 AM (BST)

Sustainable Benefits and Salary Sacrifice

SideUp and The Electric Car Scheme explore how EV salary sacrifice can make switching to an electric vehicle more accessible — and how a typical EV produces around 66% fewer lifetime greenhouse-gas emissions than an equivalent petrol car.

Register free →

In-Person Events

MANCHESTER, UK · 29 SEPTEMBER 2026 · 10:00 AM

HR, Culture & Benefits Meetup

A moderated roundtable at Industrious, Manchester, covering why great people leave, how Gen Z is redefining workplace culture, and rewards and benefits as a tax-savings strategy. Hosted by SideUp Events.

Request to join →

BRISTOL, UK · 1 OCTOBER 2026 · 1:30 PM – 6:30 PM

The Wellbeing Workout On Tour

Hosted by Hussle in collaboration with SideUp at Clifton Observatory — talks, panel discussion and networking on wellbeing, AI and people-first strategy, followed by drinks with views of the Clifton Suspension Bridge.

Speakers: Stephen Greenway (Director, S&W) on the 2027 Employee Benefits Reporting changes · Kirsty Byrne (HR Director, Eurilait) on belonging and wellbeing · Graeme Burns (Director, Mavai Ltd / AI Implementation Advisor, AI West) on preparing organisations for AI.

Get tickets →

💡 Founders Perspective

"Benefits become strategic when they solve a real problem for a real person. The future of total rewards is not more options on a list; it is more relevance, more flexibility and better data."

— Emma Olie

This week's research reinforces a simple point: employees do not experience a benefits strategy as a spreadsheet. They experience it through the support available when healthcare becomes expensive, childcare becomes complicated, student debt becomes stressful or everyday costs become difficult to manage.

A strong benefits strategy does more than add value. It makes that value visible, personal and usable.

💜 About SideUp

The strongest signal in this week's data is not that employers should spend more. It is that they should make every benefit more relevant.

When compensation, work–life balance and security are the leading reasons employees stay, benefits become part of the decision to join a company — and part of the reason to remain there. When fewer than 35% of employees report high wellness, continuing to fund low-use, standardised programmes is not a wellbeing strategy. It is an allocation problem.

SideUp helps employers turn benefits into an attraction, retention and engagement advantage. Through one platform, organisations can combine tax-efficient benefits with flexible Lifestyle Spending Accounts and support employees across needs such as student loan and tuition assistance, healthcare reimbursement, commuting, family care, wellness, working from home, food and essential bills.

Employees gain the power to choose support that fits their lives. HR gains clearer insight through benefits administration, eNPS and recognition tools. Finance gains greater control over budgets and less fragmented administration.

The result is a stronger employee value proposition: benefits candidates can see, employees can use and organisations can measure.

Discover SideUp → Book a 15-minute demo →