6 Proven Strategies for Employee Retention

Are you facing difficulties retaining your team? Have you observed a rise in employees leaving their roles, taking on extra work on the side, or switching professions? This seems to be a common trend across industries. 

Employers have always had their hands full, trying to keep employees happy. However, recent years have seen retention difficulties increase due to factors such as the pandemic, skill gaps, and the pressure of hustle culture. On top of that, employees are placing greater emphasis on job security, work-life balance, and inclusive workplaces amidst all the changes brought on by new technology like AI and automation. 

With traditional strategies often falling short, companies are compelled to reassess their approaches and establish new methods suited to their workforce's changing needs and expectations. Let's delve into strategies to help you navigate these challenges effectively. 

Realigning Strategies: Moving from Attrition to Retention

For decades, employee retention has been an ongoing challenge for major organizations, with the cost of staff turnover steadily climbing. Annually, replacing an employee can cost up to 33 percent of their annual salary with American businesses losing a staggering $1 trillion due to turnover, largely stemming from internal factors.¹

This shows the need for organizations to implement retention strategies that care for their employees and manage economic downturns more effectively. Today, innovative tools like AI-powered analytics are helping companies predict turnover risks and address them proactively. 

For example, platforms like Visier and Workday use machine learning to identify patterns in employee behavior that may indicate dissatisfaction or disengagement. 

But it’s not just about technology—employees want to feel valued, respected, and represented. Companies that fail to prioritize diversity, equity, and inclusion (DEI) risk losing their best people to competitors. While companies with strong DEI programs are more likely to outperform their peers in employee retention. 

Why Employees Leave

It's important to understand why employees leave. Society for Human Resource Management (SHRM) revealed that many employees are actively seeking new roles,² citing the following as top reasons: 

• Lack of flexibility 
• No clear career growth or path 
• inadequate support 

Other factors influencing employees' decisions to leave include:³ 

• Stress or lack of resources 
• Health and family matters 
• Work/life balance 
• Unfair or subpar compensation 
• Flexible work model (hybrid/remote) 

These factors highlight the complexity of employee retention, where various elements influence whether they stay or seek opportunities elsewhere. But what if you could address these issues before they escalate? 

In today's competitive business landscape, retaining employees is a strategic advantage. As companies vie for top talent, keeping current employees satisfied is key to success. Employee retention isn't just about maintaining staff numbers. It's also about securing an asset that drives productivity, innovation, and company culture. 

Effective Techniques for Employee Retention

In a job market where skilled workers are highly sought after and job changes are common, organizations must prioritize retaining their talent pool. Here are six proven strategies to help you keep your employees engaged and committed: 

1. Provide Avenues for Professional Advancement

LinkedIn's Workplace Learning Report found that many employees would prefer to stay at a company longer if it actively invested in their learning and development.⁴ Employee turnover resulting from limited learning opportunities represents a particularly detrimental form of attrition. 

Why? Because employees who actively seek out learning opportunities typically possess a curious disposition, they often contribute significantly to the organization. 

These employees are engaged and sharp, bringing valuable skills and insights to their roles. They are often the ones who are eager to take on challenges and find creative solutions. If they cannot find avenues for growth within their current organization, they might look for opportunities elsewhere. 

Today, AI-powered platforms like Degreed and Coursera are enabling organizations to offer personalized learning paths, making professional growth more accessible and engaging. By providing employees with opportunities to upskill and reskill, you enhance their capabilities and demonstrate your commitment to their long-term success. 

2. Make Sure Managers Aren’t Driving Away Good Employees

You've probably heard the saying, "People leave managers, not companies." The effectiveness of management directly impacts employee engagement and their likelihood of remaining with your organization. 

So, what exactly challenges employees about their managers? Obvious issues and even subtler reasons include: 

• Showing favoritism 
• Making unwelcome advances 
• Issuing informal threats 
• Feeling a lack of opportunities for growth 
• Not feeling valued 
• Experiencing excessive supervision 

How can you and your managers address these concerns proactively? 

You don't need to read minds to understand how your employees feel. Regularly ask for feedback through anonymous surveys or one-on-one meetings. Encourage honest opinions and show that you value their input. 

But be careful how you react - if you dismiss employee feedback, they may hesitate to share again in the future. Listen openly and respond positively to build trust and open communication. Additionally, invest in DEI training for managers to ensure they foster an inclusive and equitable environment. 

3. Ensure Your Employees Feel Valued and Acknowledged

Many employees report feeling unappreciated in their workplace. One potential reason for this disconnect is "emotional stinginess," which leads to turnover, especially when combined with overwork and high pressure. Signs include: 

• Withdrawal 
• Lack of enthusiasm 
• Disengagement 

For employee appreciation efforts to be effective, they must be regular, genuine, and natural. To enhance employee appreciation, consider leveraging peer recognition platforms which allow employees to celebrate each other’s achievements in real-time. This fosters a culture of recognition that feels genuine and organic. 

Encourage managers and employees to create personalized messages for their colleagues, recognizing their achievements and explaining their importance. 

Share these acknowledgments openly during face-to-face meetings or on internal platforms accessible to all employees. 

Establish yearly awards ceremonies to honor recognized employees with peers and senior leadership. 

Ensure that celebrations and rewards align with the behaviors the company aims to promote as integral to its organizational culture. 

4. Don’t Make Employees Feel Overly Burdened or Stressed by Their Workload

Overworking employees is a short-sighted strategy that fails to consider the long-term impact. It risks employee health, productivity, and undermines satisfaction, increasing turnover costs. 

Implement measures to reduce workload and manage stress. 

Distribute tasks evenly, set realistic deadlines, and ensure adequate resources and support. Cultivate a culture that prioritizes work-life balance and fosters open communication, making employees feel supported and less overwhelmed. 

Another strategy is to encourage the use of vacation time to prevent burnout. Workers hesitate to take time off because of workload concerns or fear of falling behind. But if you create an environment where managers actively promote the use of paid time off, it provides employees guilt-free breaks to recharge. 

Read More: The Post-Hire Dropout: How to Avoid Turnover in Critical Roles After a Hiring Surge 

5. Promote Employee Welfare

Amidst rising living costs, struggles in personal lives, and ongoing uncertainties, it's no surprise that nearly half of a company’s employees report burnout, with little change since the pandemic peak. 

While ensuring employees have manageable workloads, transparent communication, and a positive corporate culture are important tools for combating burnout, employers can take added measures to support employees' mental and physical health. 

Implementing wellness programs and team-building activities can further contribute to employees' well-being. Offering perks such as wellness reimbursements for gym memberships or access to mental health apps can help employees feel more restored. 

Additionally, organizing team-building activities, such as off-site retreats, group outings, or virtual team challenges, fosters camaraderie and strengthens interpersonal connections, promoting a supportive and cohesive work environment. Be sure to consider DEI-focused wellness programs that address the unique needs of diverse employees. 

6. Review and Reevaluate Compensation and Benefits

One of the most effective methods of maintaining high levels of employee retention is providing competitive compensation and benefit packages. Employees seek to be valued and fairly compensated for their contributions, so you have to offer competitive salaries, bonuses, and incentives to enhance employee satisfaction. 

In addition to monetary rewards, consider providing comprehensive benefits including health insurance, retirement plans, paid time off, and sick leave. These benefits contribute to employees' well-being and instill a sense of security and care from their employer. 

Furthermore, in today’s job market, pay transparency has become a key trend, with employees demanding clarity around compensation. Regularly assess and adjust compensation packages to ensure they remain competitive and transparent. 

Conducting market analyses helps you set salaries that are on par with or above industry standards, demonstrating a commitment to fair compensation practices. 

It is important to emphasize that competitive compensation is about attracting new talent and retaining current employees. When employees feel valued through equitable pay and valuable benefits, they become loyal and committed to your organization, reducing the likelihood of seeking opportunities elsewhere. 

Create a positive work culture that keeps top talent engaged with Allied OneSource

Are you facing a significant challenge with employee turnover? It's important not to let your most valuable team members slip away to competitors. At Allied OneSource, we have a proven track record of supporting companies in retaining their workforce. 

We provide comprehensive solutions to help organizations like yours build resilient and engaged teams. By implementing our strategies, businesses can create a positive work environment where workers can feel valued, motivated, and committed to their roles. Contact us today for a free consultation and let's start building a winning team together! 



Last updated on May 21, 2025.  

Reference 

1. “Do You Have This Trillion-Dollar Problem?” LinkedIn, www.linkedin.com/pulse/do-you-have-trillion-dollar-problem-dave-delaney-/. Accessed 14 Mar. 2024. 

2. 2023-24 SHRM State of the Workplace Report. (2024). Society for Human Resource Management (SHRM). https://www.shrm.org/content/dam/en/shrm/research/2023-2024-State-of-the-Workplace-Report.pdf 

3. Hyken, Shep. “Beyond Money: The Real Reasons Employees Stay or Leave.” Forbes, www.forbes.com/sites/shephyken/2023/07/09/beyond-money-the-real-reasons-employees-stay-or-leave/?sh=403147d43d07. 

4. Workplace Learning Report. (2024, March 6). LinkedIn. https://business.linkedin.com/content/dam/me/business/en-us/amp/learning-solutions/images/wlr-2024/LinkedIn-Workplace-Learning-Report-2024.pdf