‍Summary

• Boost your revenue with proven employee retention strategies: Learn 13 actionable tactics, including hybrid work models, career development opportunities, and off-site retreats.
• Supercharge cost-saving efforts: Discover how to save your company up to 6-9 months’ salary per employee by reducing employee turnover!
• Real-world examples: Understand how leading companies like Google, Salesforce, and Airbnb successfully retain employees with proven methods.
• Improved productivity and culture: Explore how fostering open communication, strong leadership, and positive workplace culture can enhance employee satisfaction and reduce burnout.
• Adaptable to any industry: These employee retention programmes are adaptable to any business. 

Working at a company with a high turnover can feel like living through the fall of Rome. Imagine, at your desk, all your friends have moved on and you’re in amongst all the newbies. Low employee retention can be dangerous for any organisation: it endangers productivity and can lead to a loss of income. 

But don’t fret, digest these actionable employee retention strategies. You’ll keep your best people and have them smashing targets like never before! 

What is Employee Retention?

So, what is employee retention? Well, here is our definitive (and simple) Employee Retention Definition:  A company's ability to keep its employees over time and prevent turnover. 

Why Low Employee Retention is DANGEROUS

1. Financial Costs: According to the Society for Human Resource Management (SHRM), replacing an employee can cost up to six to nine months' salary on average. For a worker making $60,000 a year, this could range from $30,000 to $45,000 in lost productivity, recruiting fees, and training time​.

2. Loss of Institutional Knowledge: Long-term employees hold invaluable expertise in a company’s processes and culture. Losing these employees means losing valuable knowledge that can take years to replace (if at all!). In simpler terms, long-term employees know how the sauce is made! They know crucial info that isn’t in the handbook. You know, the unwritten rules, the workaround, the shortcuts. 

3. Lower Morale and Productivity: High turnover will affect the morale of remaining employees. They’ll feel overworked, anxious about job security, and have a lingering thought that maybe they’re better off somewhere else too. A Gallup study found that 52% of voluntarily departing employees said their managers or companies could have done something to keep them from leaving.

13 Employee Retention Strategies

1. Embrace Hybrid Work

Covid was bad. But… it did give us hybrid work. It is the best of both worlds: collaborating in person while enjoying the flexibility of working from home.

According to a 2023 study by McKinsey, 58% of employees prefer hybrid working models.

Hear it from someone successful: We spoke to Szokratesz Kosztopulosz, Events and Operations Manager at Toggl Track. He told us why trust and flexibility are key to a healthy remote work culture. 

Key Takeaway: Offering hybrid or fully remote options allows employees to balance work and life more effectively, making it a top employee retention bonus! 

2. Prioritise Employee Well-Being

Too often, workers feel like a cog in the machine; that their company couldn’t care less about them. In this culture, employees won’t hesitate to walk out the door when the chance comes. 

According to the American Psychological Association, workplaces that promote employee well-being experience reduced turnover by 17%.

Real-Life Example: Companies like Johnson & Johnson are known for their robust wellness programs and employee retention programmes, offering everything from mental health support to fitness classes, helping them retain top talent​.

Key takeaway: Show your employees you care, and you’ll have workers who work harder and are less likely to leave! 

3. Use Off-Site Work Retreats for Team Building

Sometimes when it comes to employee retention strategies, words and gestures aren’t enough. Sometimes, you need to make a statement. In other words… a company retreat! 

Yes, regular off-site retreats allow employees to recharge, bond, and gain a fresh perspective outside the office. More importantly, it shows that you care. 

Here at OnsiteHub, for instance, we specialise in organising off-site retreats. From relaxing breaks to strategy sessions—we take care of the logistics—you focus on fun and business. 

EXAMPLE: Don’t take our word for it, hear it from one of our many happy clients. Discover how this year's QuoIntelligence annual retreat offered opportunities for face-to-face conversations, engaging workshops, and quality time spent together as a team.

Key Takeaway: By providing employees with a chance to step away from the usual work setting, companies can create a sense of renewal, ultimately improving retention.

4. Provide Clear Paths for Career Development

You can’t expect a flower to grow if you don’t give it water. And if you don’t give your employees the chance to grow, they’ll go somewhere where they can. 

LinkedIn found that 94% of employees would stay longer at a company if it invested in their career development. 

Key Takeaway: Providing professional development through training programs, mentorships, and leadership opportunities can reduce turnover and help retain top talent.

5. Open Communication and Recognition

You don’t have to run your department like the army. A kind word goes a long way. Yes, your employee retention strategies can begin with a simple “well done!”. 

Gallup reported that employees who feel heard and valued are 4.6 times more likely to perform their best work.

Baudville found that 80% of workers would work harder if they felt more appreciated, AND, strong recognition programmes reduce employee turnover rates by 31%!

Real-Life Example: Companies like HubSpot maintain a culture of transparency by hosting weekly Q&A sessions where employees can ask leadership any question. 

Top tip: Foster better communication with these 25 ideas for ice-breaking activities! 

Key Takeaway: Employees want to feel valued and heard. Open communication and regular feedback create a culture of trust and engagement!

6. Competitive Compensation and Benefits

People spend a lot of time thinking about money. If people have problems in their life, it’s often money-related. And, more often than not, people work for money, not just for the love of their work. If another company offers them more cash, they will seriously consider leaving. That’s just how it is.

90% of workers say that compensation correlates with job satisfaction! 

Key takeaway: Beyond basic salary, benefits such as health insurance, retirement plans, and flexible work hours contribute to job satisfaction.

7. Strong Leadership Culture

We’ve all had horrible bosses. And the truth is, employees tend to leave managers, not companies. 

The Niagra Institute found that 57% of respondents had previously left a job because of their leader. 

Real-Life Example: At Microsoft, leadership development is a core focus. Part of their employee retention programmes include manager training not just in technical skills, but in emotional intelligence and empathy. 

Key Takeaway: When leaders are accessible, empathetic, and supportive, employees are more likely to stay.

8. Prioritise Work-Life Balance

Companies that run their employees into the ground will always experience a lot of turnover. Any good employee retention programmes should always look to prevent burnout. 

Gallup proved that employees with a good work-life balance are 21% more likely to stay with their employer.

Real-Life Example: Startups like Basecamp have implemented policies such as four-day workweeks during summer months, ensuring that employees have time to recharge.

Top Solution: Here’s How to prevent burnout at your company, and why company retreats are the key! 

9. Encourage Employee Engagement through Innovation

Employees aren't robots. Let them use their brains! Encourage your team to take ownership of projects and push boundaries. 

Real-Life Example: Companies like Apple give employees time to work on personal passion projects, fostering creativity and commitment to the company.

Key Takeaway: When employees feel they are part of something innovative and can contribute to new ideas, their engagement increases. 

10. Exit and Stay Interviews

Mistakes are a part of life. They happen to all of us. Making the same mistakes over and over again, however, is a problem. In the context of employee retention strategies, use exit interviews to identify if your company is making the same mistakes with fleeing workers. Conversely, stay interviews help identify what motivates current employees to stay. 

Key Takeaway: Use these interviews to gather actionable feedback and implement changes that align with employee needs.

11. Internal Mobility

Doing the same task every day till the end of time might not be an exciting prospect. Especially for an employee with a curious mind. So, if the copywriter wants to try their hand at sales—encourage them! It’s an employee retention bonus that costs nothing! 

LinkedIn found that employees who make an internal move are twice as likely to stay for three years compared to those who don’t.

Key Takeaway: Allowing employees to try different roles allows them to explore new challenges without leaving the company. 

12. Perks and Incentives

Why will your employees go above and beyond for you if you won’t do it for them? Base salary is called base for a reason, after all. 

SHRM found that 92% of employees consider benefits important to their job satisfaction.

Real-Life Example: Starbucks offers tuition reimbursement and stock options to full-time and part-time employees.

Key Takeaway: Providing unique and meaningful perks can set your company apart from competitors. 

13. Employee Autonomy

Your workplace shouldn’t feel like a prison. Your boss shouldn’t act like a prison guard. It leads to stress, a lack of confidence in their ability, and a lack of trust. 

Studies have shown that autonomy at work is directly linked to increased job satisfaction and employee retention.

Real-Life Example: Tech company Basecamp encourages autonomy by giving employees the freedom to structure their own workdays. 

Key Takeaway: When employees feel trusted and given the flexibility to make decisions, they are more motivated and committed. 

Conclusion

In today’s competitive job market, investing in employee retention strategies is not just about reducing costs; it’s about creating a thriving workplace where employees feel valued, motivated, and empowered. 

Whether through flexibility, career development, or using services like OnsiteHub for off-site retreats, companies that prioritise retention strategies will see long-term success.