Does values-based recruitment improve employee retention?
Skills show whether someone can do the job. Values and behaviours help reveal how they will do it, whether the working environment suits them and whether they are likely to stay.
The short answer is yes, it can.
People are more likely to stay when they are suited not only to the role, but also to the management style, pace, expectations and everyday reality of the business. Skills tell you whether someone can do the job. Values and behaviours help you understand how they will do it and whether they are likely to thrive.
This matters particularly for SMEs. A poor match can quickly affect colleagues, clients and delivery, while the cost of recruiting again includes lost time, onboarding and disrupted momentum. It is one reason retention should begin during recruitment, not when somebody is already considering leaving. For the wider retention picture, read the SME guide to reducing staff turnover.
What does the evidence say?
Skills for Care describes values-based recruitment as an evidence-based way to assess whether a candidate’s values, behaviours and attitudes align with a workplace’s values, culture and expectations.
Its research in adult social care found that employers using values-based recruitment had average staff turnover more than six percentage points below the sector average. It also estimated a return of £1.23 for every £1 invested, largely through lower turnover and training costs. The sector context matters, so these figures should not be treated as a guaranteed result for every SME. They do, however, support the principle that better matching can improve retention.
The CIPD Resourcing and talent planning report 2024 found that 56% of organisations had found talent harder to retain during the previous year. It also found that 41% had experienced new starters leaving within their first 12 weeks. Early departures can indicate that the role, expectations or working environment did not match what the candidate had been led to expect.
Values, skills or both?
It is not a choice between values and skills. You need both.
A candidate may have managed a team of ten, but how did they lead them? How did they handle conflict, poor performance or difficult feedback? Good values-based recruitment looks for evidence of workplace behaviours that matter in the role, such as:
- Accountability
- Integrity
- Adaptability
- Collaboration
- Customer care
- Response to feedback
This is not about whether someone “feels like one of us”. Shared standards matter; matching personalities does not. A fair process defines relevant behaviours in advance, asks every candidate for evidence and scores answers consistently.
Four ways to improve retention from the start
The Better People ROOT Framework turns that principle into four practical steps.
R: Role clarity
Define what the person must achieve and be honest about the realities of the role. A clear brief makes it easier for candidates to judge whether the opportunity is right for them.
O: Observable values
Turn broad words such as “integrity” and “teamwork” into behaviours you can recognise and assess. Ask for examples that show how a candidate acted, not simply whether they agree with the value.
O: Organisational reality
Explain the true pace, structure, management style and stage of growth of the business. Being able to do a job and being suited to doing it in your particular business are not always the same thing.
T: Track the early experience
Continue supporting and assessing the match throughout onboarding and probation. The promises made during recruitment should match the employee’s day-to-day experience. That consistency also helps create the psychological safety that enables people to speak up early.
The key takeaway
Values-based recruitment cannot guarantee that somebody will stay. It can reduce avoidable mismatches that lead to early resignations, disrupted teams and another expensive recruitment exercise.
Recruit for capability. Recruit for behaviour. Tell candidates the truth about the business they are joining.
That is how you recruit people who are more likely to contribute, perform and stay.
If you are recruiting someone important to your growth, meet Jayne Johnson or explore Better People’s recruitment and talent support.