Your employees were probably job hunting last month

Instead of getting lost in a beach read, 8 in 10 UK employees spent their summer holidays job hunting, new data has revealed.

The discovery comes as many sectors experience staff shortages. Bars, restaurants, and hotels are particularly suffering, as the hospitality industry experiences sharp job losses. Retention is becoming a real challenge for bosses.

With inflation climbing, employees expect their wages to follow suit, and it’s making the job market even more competitive. So how can SMEs make sure their best people stay?

The summer surge in job hunting

Recent data from the Headway app explored what is driving employees to leave their jobs and seek change this year. The study showed that 79% of employees were job hunting on vacation, with half of those actually going so far as to attend interviews.

It also found that Google searches for “get a counteroffer” have spiked by +114% over the past month, showing that employees are preparing to return to work with stronger negotiating power.

This is part of a broader trend in revenge quitting, which has seen summer 2025 become a peak moment for workers looking for new positions. 

Post-pandemic staff shortages, soaring living costs, and a competitive job market with rival employers offering higher pay or extra perks mean that employees at the moment are prone to feeling that the grass may be greener elsewhere. 

Their optimism might be ill-placed, however. QuickBooks’ latest Small Business Index revealed that 49,600 jobs have been lost since April 2025. Hospitality was hit hardest, with the index recording a loss of 21,800 vacancies across hotels, pubs, restaurants, and bars.

What it means for business owners

Small firms, in particular, feel the strain when valued employees seek pastures new. With fewer resources to match the salaries of larger competitors, the loss of a skilled worker hits even harder.

Now, a growing trend of employees seeking better offers threatens to worsen the challenges that businesses are already facing, leading to understaffed shifts, higher recruitment costs, and falling morale.

At the same time, the Headway statistics show that counteroffers are on the rise. Employees aren’t just quitting; many are using external offers as bargaining chips to negotiate better deals with their current employers.

How to retain (and compete for) talent

Cindy Cavoto, productivity coach at Headway, recently shared five negotiation tactics employees can use to discuss counteroffers. Cavoto advises:

1. Look beyond salary, focus on bonuses, perks, or faster promotion opportunities
2. State your request, then pause, resist the urge to over-explain
3. Use market benchmarks, not emotions
4. Secure future salary reviews in writing
5. Challenge the “no budget” excuse

For employers, there are also learnings. Namely: salary isn’t the sole motivator. Offering more growth opportunities, setting fixed review dates, and investing in non-financial benefits like training or flexible working arrangements can be just as valuable for staff retention.