Most recruiters and hiring managers research ways to attract the best candidates — and how to craft offer enticing enough for them to sign.
While these tactics are vital to building a healthy workforce, it's equally important to know how to retain employees. Today’s employees have expectations that go far beyond a steady paycheck and basic insurance plan; they want a workplace that invests in their growth and well-being.
On that note, here’s a roundup of employee retention strategies designed for today's top talent. Let's begin with a quick look at retention and the factors affecting it.
What’s employee retention, and why does it matter?
An organization’s ability to keep its talent long-term is known as employee retention. It’s not just about keeping people on the payroll. They should choose to stay because they feel valued and see a future at the company, not just wait until they find a better job.
So, why is employee retention so important? Turnover is expensive. Filling a vacant position means spending money on recruitment, onboarding, and training. It could then take a new hire a year or two to become as productive as the person they replace, cutting into profitability. Additionally, with a high enough
employee turnover, the organization is bound to take a cultural hit that could affect both customers and remaining employees.
Reduce those risks by creating an environment where employees feel valued, supported, and motivated to contribute their best — a workplace culture that enhances job satisfaction and makes both new hires and company veterans want to stay.
What causes employees to leave?
Before improving retention rates, businesses need to understand why employees choose to look for new opportunities.
The most valuable insights usually come from employees themselves. Conducting exit interviews when someone resigns can uncover specific issues affecting job satisfaction and engagement.
However, there are some general trends behind resignations. Here are some common causes of turnover and how they impact the workforce.
Inadequate pay
Strained work-life balance
Burnout is a growing issue as employees juggle increasing workloads and financial stress. Long hours, rigid schedules, and no flexibility leave workers drained and unmotivated, and
38% of workers rely on community or government aid to get by. Over time, this leads to poor employee engagement and eventually, resignation.
Few career advancement opportunities
Ambitious employees constantly look for ways to grow, whether through promotions, skill development, or new challenges. If they feel stagnant or passed over, they may start seeking employers who offer a clearer path forward.
Feeling undervalued
Recognition matters. Employees who consistently feel that their hard work goes unnoticed are less likely to feel satisfied and incentivized to stay. Lack of acknowledgment — like through verbal praise or tangible rewards — can erode their sense of purpose and belonging.
Monotony in their roles
Repetition and scarcity tend to lead to boredom, which diminishes job satisfaction and leaves employees feeling unchallenged and uninspired. Employees who aren’t engaged in their roles are more likely to explore options that promise excitement and innovation.
There are many reasons employees choose to look elsewhere. However, it’s possible to address these factors. Now, it’s time to look at proven strategies that retain talent and build a strong workforce.
11 effective employee retention strategies
People put themselves back on the job market because they can easily see better opportunities elsewhere. That means any incentives employers offer must be equally clear and compelling. Here are 11 employee retention strategies with examples.
1. Offer competitive pay
Compensation is a top factor in employee retention. Review market trends regularly to ensure salaries, bonuses, and benefits remain competitive. Be transparent about pay structures — honesty is the key to building trust and loyalty.
Action steps:
2. Implement flexible work arrangements
Flexibility is no longer a perk — it’s an expectation. Rigid schedules and poor work-life balance are some of the first things that make employees burn out. By offering flexible options, companies empower employees to more easily navigate their personal and professional lives.
Action steps:
Implement hybrid or remote work policies.
Allow flexible scheduling, like compressed workweeks.
Support parental and caregiving responsibilities with leave options.
3. Encourage career growth
Employees want to grow. If they can’t envision a future at the company, they may look elsewhere. Offering career advancement opportunities shows a commitment to their development.
Action steps:
Provide access to learning and development programs, including online courses and certifications.
Create mentorship opportunities between new hires and experienced employees.
Develop clear pathways for promotions and communicate them during performance reviews.
4. Recognize and reward employees
Recognition fuels employee engagement. When people feel valued for their contributions, they’re more likely to stay motivated and committed to the organization.
Action steps:
Celebrate achievements publicly during meetings or in newsletters.
Offer spot bonuses, gift cards, or additional time off as rewards for exceptional performance.
Implement peer recognition programs where employees can nominate colleagues for awards.
5. Keep work engaging and dynamic
Repetitive tasks and low variety often lead to boredom and dissatisfaction. Employers are more likely to retain employees who get excited to work, and that means giving them challenges.
Action steps:
Rotate responsibilities or assign stretch projects to encourage skill development.
Host brainstorming sessions to include employees in problem-solving and innovation.
Encourage participation in cross-departmental initiatives to build diverse skill sets.
6. Prioritize employee well-being
A focus on mental, physical, and financial health goes a long way toward improving employee retention. When employees feel supported in all aspects of their well-being, they’re more likely to stay engaged, loyal, and committed to the organization.
Action steps:
Introduce mental health programs to provide counseling services, stress management resources, and workshops on mindfulness.
Provide fitness-related benefits like subsidized gym memberships, wellness stipends, or access to virtual exercise classes.
Offer financial wellness benefits like financial education, or EarnIn’s suite of tools, including
on-demand pay, to help employees build a stronger financial future, today. Employees can access a portion of their pay the same day they work, starting at just $2.99 per transfer.
They can access up to $150 per day, with a max of $750 between paydays.
7. Build a collaborative and inclusive culture
Employees excel in workplaces where they can be themselves. Fostering a culture of collaboration and inclusion helps create a sense of belonging that drives loyalty.
Action steps:
Host team-building activities to strengthen interpersonal relationships.
Celebrate diversity through cultural events and employee resource groups (ERGs).
Train managers on inclusivity to ensure all voices are heard and respected.
8. Communicate transparently
Honest communication builds trust and reduces uncertainty. Employee engagement increases when people understand company goals and their roles within them.
Action steps:
Hold regular town halls or Q&A sessions with leadership.
Share company updates openly, even when discussing challenges or setbacks.
Set clear expectations during onboarding and performance reviews.
9. Offer perks that stand out
Beyond standard benefits, unique perks show employees their employer is invested in their happiness and well-being.
Action steps:
Go above and beyond with employee benefits, offering programs like childcare assistance or tuition reimbursement.
Offer financial benefits like 401(k) matching, stock options, or Earned Wage Access (EWA).
10. Establish strong onboarding practices
First impressions matter. A well-designed onboarding process sets the tone with new hires, paving the way for a long-term relationship.
Action steps:
Pair new hires with mentors to guide them through their first months.
Create a structured onboarding program that introduces company culture, values, and expectations.
Check in regularly during the first 90 days to address questions or concerns.
11. Develop a feedback culture
Employees want to feel heard. Regular feedback shows that the company values their input and is committed to improvement.
Action steps:
Conduct quarterly employee engagement surveys to understand how workers feel within their roles.
Host focus groups or open forums for employee feedback.
Act on suggestions where possible, and communicate what changes are being implemented.
Conduct exit interviews to identify recurring challenges that lead to high turnover.
Improve employee retention with EarnIn
While there may be limitations on salary increases, promotions, and employee benefits budgets, EarnIn offers a simple way to enhance employee retention through
financial wellness.
With tools including EWA, employees can
access a portion of their pay (up to $150/day, with a max of $750 per pay period
) when they need it, reducing stress and improving retention rates. Our suite of solutions even includes
Credit Monitoring to help employees monitor their score, and
Balance Shield to help avoid overdrafts. With no cost to employers and no payroll, time and attendance, or HRIS integration required, EarnIn is easy to offer and fast to launch.
Ready to reduce employee turnover and improve retention?
Request a demo to see how EarnIn can help.
