Marvin OnumonuHiBob research found one in three (31%) employees at small and medium-sized enterprises (SMEs) have quit after a colleague left, and nearly half (48%) would consider doing the same.
Over half (52%) of UK staff in these businesses said they were thinking about leaving in the next year, with 10% already looking for another job.
Three-quarters (75%) said they enjoy their job because of the culture and purpose, and 77% said they have close working relationships with colleagues.
Nearly as many (74%) said these links had become real friendships outside work.
71% said losing a colleague felt like losing a friend, and 60% said it had a personal impact.
62% said the people around them motivated them to do their best work.
One in seven (15%) staff with hiring duties said they had seen 40% of their workforce turn over in the past year, and 31% said replacing one person cost more than £10,000.
71% said delays in hiring were damaging morale and work-life balance, while 61% said higher employee costs meant greater expectations from those who stayed.
48% said pressure from turnover was causing sleepless nights.
Ronni Zehavi, CEO and co-founder at HiBob, said: “In small businesses, even one resignation can have a disproportionate impact on output, morale and momentum.
“SMEs are powered by close relationships and a shared sense of purpose, which makes them incredibly resilient – but also more exposed when those dynamics shift.
“Retaining talent in this environment isn’t about quick fixes. It’s about consistency: recognising people, creating clear paths for growth, and investing in a culture that makes them want to stay.”
Zehavi added: “Our data shows the employee focus is shifting away from pay alone – towards recognition, career development, and creating a reason for employees to stay.
“SMBs who prioritise these will be one step ahead in avoiding the cost of resignation.”
