22 April 2026 
Emma Walton-Pond, Communications Officer
People that are happy, motivated and feel recognised are of course critical to the success of every university. Yet for many HR and reward leaders, sustaining that human connection is made challenging by budget constraints, financial pressures and restructuring.
In this blog, Reward Gateway Edenred explore how these pressures are leading some universities to respond differently. Based on their work with over 35 UK universities, they share a practical framework that is proven to help retain critical talent, strengthen morale and make people feel appreciated, even as resources tighten and organisations manage significant change.
Why engagement matters now more than ever
At Reward Gateway Edenred, we are recognise that financial pressure is reshaping priorities across Higher Education. Not least in the form of transformation programmes, efficiency drives and structural reorganisations that are driving change fatigue across the workforce
Retention and attraction challenges are increasing too, not just because it’s a competitive market, but because people are losing connection with their own organisations. In fact, our most research at Reward Gateway Edenred shows that as many as 64% of university employees are more committed to their work than to their employer
The result is that Engagement isn’t a ‘nice to have’ anymore. It’s a strategic imperative.
However, recognising the importance of engagement is only part of the challenge. Delivering it effectively within complex university environments is where many institutions encounter obstacles.
Why there are barriers to improvement
One of the biggest problems we see universities facing is that their legacy recognition and reward programmes aren’t always up to the task. Many institutions have introduced non-pension rewards such as health, wellbeing, recognition and discounts over time and in a piecemeal fashion, often through pilots, mergers or departmental initiatives rather than a unified strategy.
University HR teams also support some of the most diverse workforces in the public sector: from early-career academics on fixed-term contracts to non-desk-based estate management staff, A one-size-fits-all approach to engagement is unlikely to resonate across such varied groups.
Layered on top of this are cost-of-living pressures, which are especially acute in high-cost university cities such as London, Oxford, Cambridge and Edinburgh, where housing costs can make it difficult to recruit and retain even well-paid talent.
Taken together, these dynamics reinforce the need for a fresh response.
A framework for action: 4 steps that deliver results
The opportunity for universities is to act deliberately to retain talent, optimise costs and sustain performance. At Reward Gateway Edenred, we’ve developed a four-part framework translates these priorities into practical, achievable actions.
1: Personalised recognition that retains key talent
Our research shows that 93% of employees say feeling appreciated matters, and 69% say recognition increases loyalty. Further research from the Haas School of Business at UC Berkeley found that while recognition boosts productivity by 23%, feeling appreciated increases it by 43%, nearly doubling the impact.
In mission-driven environments like universities, thoughtful, personalised recognition (including peer-to-peer) can be highly cost-effective, especially during peak-pressure periods such as REF cycles, major grant submissions, financial year-end or large-scale recruitment campaigns. These are the moments when collaboration is most intense and maintaining morale matters most.
2: Benefits that reflect workforce diversity and values
Employees are less likely to value rewards that feel irrelevant, are poorly communicated or not fully understood. Universities can often achieve stronger ROI by evolving from fragmented legacy schemes to more flexible, persona-based approaches that help HR teams communicate more clearly and meet people where they are in their lives and careers.
It’s also important to highlight the full economic value of benefits beyond base pay. Digital platforms that make total reward more visible and easier to navigate can increase perceived value without additional spend.
During periods of organisational change, this approach can help protect engagement while also simplifying complexity and reducing cost from under-used schemes.
3: Cost-of-living support
Financial stress is now one of the most significant drivers of attrition and reduced performance. With salaries constrained and many universities located in high-cost cities, employees are increasingly feeling the pressure of everyday affordability.
Encouragingly, practical and often low-cost interventions can make a meaningful difference. Salary sacrifice schemes for Cycle to Work, electric vehicles or home tech offer immediate savings, while discount schemes can help employees save 10–15% on everyday expenses. In some cases, individuals can reduce annual costs by as much as £2,008.
These are tangible ways to support financial resilience without increasing salary budgets; helping to ease pressure, strengthen retention and enhance the overall employee value proposition.
4: Wellbeing as institutional performance
Wellbeing is most effective when it’s embedded into the fabric of the organisation rather than treated as an add-on. In universities, it is closely linked to research productivity, teaching quality and student outcomes.
Our research shows that 77% of employees say support and recognition improve performance (with 39% saying they perform “much better”). Leading institutions are increasingly adopting proactive approaches, embedding wellbeing into culture, providing accessible mental and physical health resources, supporting workload management and enabling recovery time during predictable high-intensity periods such as exams or REF deadlines.
This not only supports individuals, but also helps reduce absence, minimise grievances and sustain institutional performance. In this sense, wellbeing is not a cost, it is a key enabler of success that delivers a human and financial return.
The way forward
The challenges facing universities are significant, but so too are the opportunities. Amid complexity and change, people remain at the heart of institutional success. When employees feel seen, appreciated and supported, they are better able to contribute at their best.
HR and reward leaders play a vital role in unlocking that potential. Engagement is more than an initiative. It is an investment in innovation, collaboration and long-term resilience.
With the right insights, technology and partnerships, universities can continue to build sustainable excellence while demonstrating clear, measurable ROI to CFOs and senior decision-makers.
Find out more
For more on this topic, download the new Reward Gateway Edenred eBook: Rebuilding Connection, Reward and Resilience in Higher Education.
We’d also love to you at the UHR Conference on the 13th May at 11.45am where we’ll be presenting a Business Session on the lived reality of implementing an effective employee engagement programme alongside the University of Manchester.
