Employee retention strategies benefit your company’s growth by helping promote cost savings, increasing productivity, establishing your brand’s reputation, and, ultimately, retaining top talent. The simplest approach is to compensate your employees with fair wages and benefits, focus on work-life balance, and provide opportunities for development and upward mobility.
This article dives into 20 employee retention ideas that will encourage employees to stay and achieve their goals within your company.
1. Ensure Pay Is Competitive
Offering competitive salaries is not only an excellent way to attract and hire employees but also an important way to retain them too. Providing employees with competitive salaries and offering raises and bonuses consistent with industry standards reduces the risk of your top talent finding better offers elsewhere.
Moreover, giving regular performance-based pay raises and/or bonuses demonstrates a company’s commitment to the employee and can build goodwill—even if the company can’t always keep pace with competing offers.
2. Offer Robust Benefits
Competitive pay is more than just dollars in a paycheck; it also includes the different types of benefits offered to employees that contribute to their total compensation, such as healthcare coverage, life and disability insurance, paid time off (PTO), and retirement benefits.
Total compensation factors in competitive pay, health insurance benefits, paid time off, performance-based raises, retirement benefits, and life and disability insurance.
When your employees have a complete benefits package, it contributes to their overall satisfaction because they feel their needs are met. Essentially, a comprehensive benefits package helps to attract and retain top talent because it shows that you care about their overall well-being.
3. Incorporate Onboarding & Orientation
Many companies find that turnover is highest among new employees, so it’s important to give them the resources they need to succeed from the beginning. Take steps to retain talent from the first day by providing employees clarity around their roles, day-to-day requirements, and what success looks like—all of which can be accomplished with a formal onboarding and orientation process.
By supporting an employee’s growth mindset from the beginning, you’ll be more likely to retain top talent in the long run. According to a Gallup poll, 29% of new hires feel fully supported and prepared for their new role following a detailed onboarding and orientation process. This can help them master their positions and future career growth.
4. Provide Clear Job Descriptions & Expectations
Unclear job descriptions can lead to confusion and frustration among employees, causing them to feel unsupported and undervalued. On the other hand, employees with a clear understanding of their roles and responsibilities are more likely to be satisfied with their job.
According to a Gallup study, organizations that clearly define employee expectations can see a 10% increase in productivity and a 22% decrease in employee turnover. Defining and discussing these expectations helps employees focus their efforts on meeting those responsibilities.
5. Communicate Openly & Transparently
To build trust and make employees feel at ease, develop a company culture that encourages open communication and fosters a feeling of psychological safety in the workplace—whether that be in an office or on a video call. Communication should also go both ways, so solicit input from your team members to nurture engagement, build trust, and encourage employee retention.
Being transparent with your employees about company policies and decision-making can also make employees feel more loyal to—and invested in—your company. Communication should inspire employees’ confidence in themselves, their colleagues, and the company itself. Hold at least a monthly all-company meeting to discuss the following:
- Company outlook
- Employee achievements
- Policy updates and reminders
- Strategy objectives
- Organization goals
- Budget goals and achievements
6. Offer a Fair & Transparent Grievance Process
Creating a fair and transparent grievance procedure in the workplace is essential for maintaining a positive and healthy work environment. It also allows you to prevent minor issues from becoming a litigation case.
Here are some of the best practices in establishing a grievance process:
- Develop a written policy: The grievance policy should be clear and concise, outlining the grievance procedure in the workplace. This policy should be easily accessible to all employees and clearly explain the steps involved in filing a complaint and how it will be resolved.
- Provide multiple ways to file a complaint: Employees should be able to air their grievances in different channels, such as through a hotline, email, or in person. Besides making the process easier, it also ensures that employees feel comfortable doing so.
- Establish a timeline for resolution: There should be a timeline for resolving the complaint to ensure its resolution in a timely manner. Furthermore, all the details should be communicated to all parties involved to ensure transparency.
- Train managers and supervisors: The training should include how to handle complaints and how to maintain confidentiality. They should also be trained on how to identify potential conflicts of interest and how to avoid them. This is part of your overall employee relations strategy.
- Assign a neutral party to investigate: When investigating a complaint, an HR representative or a third-party consultant should conduct the investigation to ensure that it is fair and unbiased.
- Keep records: Keep detailed records of all complaints and investigations, including the steps taken and the outcome. This will help you identify trends and take necessary steps to prevent similar issues in the future.
Ensuring that all employees are heard when they have an issue at work will help you steer clear of potential HR horror stories.
7. Prioritize Work-life Balance
In addition to promoting a corporate culture that encourages open communication, set and enforce policies that support a healthy work-life balance. Depending on your organization, this may mean offering work-from-home options or otherwise establishing a flexible work schedule policy.
Work-life balance can also involve maintaining manageable workloads (do regular check-ins to ensure it’s working for the employee), creating a positive work environment, and providing wellness programs. Allowing employees to prioritize a healthy work-life balance will make them more likely to stay with your company for the long haul.
8. Encourage Employee Task Prioritization
When employees feel overwhelmed, stressed, and unsupported, they are more likely to experience low job satisfaction, reduced engagement, and increased turnover rates. To avoid this, managers should help employees prioritize their tasks by providing clear guidelines on which tasks are the most important and urgent.
Encourage employees to focus on one task at a time and avoid multitasking. Furthermore, break down complex tasks into smaller, more manageable parts. This can help reduce the feeling of being overwhelmed and give employees a sense of accomplishment as they complete each step.
9. Conduct Regular Performance Reviews
One-on-one performance review meetings with managers can help employees understand the definition of success in their roles. These also provide a great opportunity for supervisors to learn more about what makes employees tick and what they need to be their best selves. This not only helps you better manage your employees day to day but also lets you learn about—and nurture—their professional goals. Sometimes, all you have to do to retain top talent is ask the right questions and listen.
Additionally, conducting regular performance reviews can help tie an employee’s performance to your company successes. This gives managers a chance to weigh the expectations of employees against their performance and contributions. Clearly outlining goals and performance can lead to a more positive work environment.
10. Foster a Positive & Inclusive Work Environment
An inclusive work environment attracts and retains top talent. When employees feel valued, respected, and included, they are more likely to trust their colleagues and the leadership. This leads to greater collaboration, more effective teamwork, and better communication throughout the organization.
To do this, consider the following:
- Promote diversity
- Implement bias training
- Encourage open communication
- Implement feedback
- Celebrate cultural differences
- Establish inclusive policies
- Demonstrate empathy
- Incorporate transparency
11. Offer Personal & Professional Growth Opportunities
Training and development should be a top priority. To retain your top talent, provide employees with the tools they need to be successful in their current roles and as they develop. Training new employees on company policies, learning new skills, and creating opportunities for professional development are all ways to keep your team engaged and productive.
Start with offering job training and education opportunities that can be translated into role advancement for your employees. Depending on the employee, it may also be helpful to cover education expenses to grow in a relevant field or to encourage conference attendance through financial assistance and flexible work schedules.
You can keep track of your return on investment (ROI) for training and development with this simple formula:
((Value of increased performance – Cost of employee training)
÷ Cost of employee training)) × 100
12. Promote From Within
Whenever possible, consider the career paths and goals of your employees in the context of existing roles in the company. Promoting from within not only boosts morale but can also be the key to keeping employees engaged, even as their goals and interests develop.
This is partly because employees are more likely to participate in corporate events, training sessions, and other activities when there is a greater likelihood of promotion. Internal promotions also foster a greater sense of loyalty—which leads to higher employee retention rates.
13. Challenge Employees
Giving employees new and challenging tasks can help them learn new skills, use more of their talents, and feel more engaged in their work. Depending on the role, employees may benefit from stretch assignments that require them to go beyond their current expertise or skill set. Provide a safe environment for them to experiment, fail, learn, and develop.
Careers should be designed with top talent in mind so they are given the opportunity to grow and learn within the company. Challenging positions tend to increase motivation and engagement among employees. However, don’t make the job so challenging that the employee wants to give up.
14. Provide Employees Recognition and Feedback
Creating a culture of recognition not only increases employee confidence in completing day-to-day tasks but also helps employees feel more secure in their positions. Managers can nurture team members and encourage high retention by setting tangible goals, providing ongoing feedback, and celebrating accomplishments.
Some ideas include the following:
- Allowing employees to give feedback
- One-on-one meetings with managers and employees
- Peer-to-peer public shout-outs
This type of positive reinforcement is even more effective when managers tie individual achievements to company-wide goals and initiatives. I also recommend asking your employees how they like to receive feedback and recognition to make a more personal experience.
15. Conduct Stay Interviews
A stay interview is a structured conversation between a manager and an employee aimed at understanding what motivates the employee to stay with the company and what factors may cause them to consider leaving. Stay interviews are typically conducted with top performers or employees who are critical to the company’s success.
The structure of a stay interview can vary depending on your organization’s needs and the manager’s style. Generally, it should have the following elements:
- Questions: Ask open-ended questions to understand the employee’s perspective and motivations, as well as any concerns or challenges they may be facing.
- Relationship building: Take some time to build rapport with the employee to create a safe space for open and honest communication.
- Introduction: Explain the purpose of the stay interview and the importance of the employee’s feedback.
- Active listening: Listen actively and attentively to the employee’s responses, and ask follow-up questions to clarify their meaning.
- Action & follow-up: Based on the employee’s feedback, discuss potential actions that the organization can take to address any issues or concerns and improve employee retention.
16. Provide Mentorship Opportunities
Having a structured program where senior employees (or even lateral employees) act as mentors to less experienced staff sets your employees up for success in their roles. When employees are successful, they experience higher levels of satisfaction and engagement.
At FitSmallBusiness, our volunteer mentorship programs run for six months and provide the opportunity for mentor and mentee assignments. It is structured to provide the best guidance between mentors and mentees. I participated as a mentor in the program two years in a row and learned just as much as I taught.
17. Acknowledge Milestones
Employees like to be recognized when they reach certain milestones, such as their work anniversaries. By showing appreciation for their contributions, you boost overall morale and create a sense of belonging for your employees. This approach ultimately encourages your employees to stay longer.
Additionally, offering monetary rewards for longevity with the company incentivizes your employees to stay to reach those milestones. For example, after one year of service, the employee could receive a $500 bonus. The longer they stay, the more they make (e.g., $1,000 for 5 years of service, $2,500 for 10 years of service, etc.).
18. Offer Incentives
Your employees give their talents, skills, and expertise to help your business thrive and grow. As a thank you, it’s a good idea to give back to them. Offering incentives, whether monetary, tangible, or abstract, shows your employees that you value their contributions and care about their happiness and well-being.
You can show your appreciation to employees in a number of ways, including the following:
- Bonuses
- Annual pay raises
- Company swag (e.g., branded clothing, coffee mugs, laptop bags)
- Additional paid time off for a job well done
- Flexible working hours
- Flex days (employees can take the day off if they reach their time or deliverables goals)
19. Encourage Teamwork
Employees who work well with their colleagues generally want to stay at a company longer. When you encourage teamwork, you set the stage for collaboration and enhanced communication. Teamwork boosts happiness and reduces turnover because employees enjoy working together.
Real team building encourages employee retention and elevates your company culture by doing the following:
- Enhance collaboration
- Strengthen bonds
- Cultivate positivity
- Empower employees
- Boost morale
20. Incorporate Employee Wellness Strategies
Healthy employees are more likely to be happy and productive employees. I encourage you to implement some wellness initiatives into your company culture, such as fitness reimbursements, mental health advocacy, and financial health.
In fact, according to our employee wellness statistics, employees with access to multiple wellness programs were 1.5 times more likely to stay with an employer and three times more likely to recommend their employer as a great place to work.
Employee Retention Frequently Asked Questions
Simply put, it is putting measures in place that make your employees want to stay at your company for the long term. To do so, you must invest time and resources into training your employees to thrive and creating a company culture that makes them not want to leave.
A high turnover rate can cost your company thousands of dollars, not to mention the stress of finding new employees and the time you have to spend training them. On the other hand, a high retention rate saves you money and ensures the stability and continuity of your organization. Additionally, high retention rates can boost employee morale.
Key factors to consider include career development, competitive compensation, work-life balance, positive culture, flexible arrangements, employee recognition, performance feedback, and training and development programs.
The three R’s of employee retention are Respect, Recognition, and Reward. To successfully retain employees, you must create a culture where they want to work. An environment where they are respected for their knowledge, recognized for their hard work and accomplishments, and rewarded accordingly for their contributions to your company’s success.