The Top 12 Employee Retention Strategies Every Company Should Implement

Ghosted again? If employees are leaving, maybe it’s not them – maybe it’s you! Real talk: foosball tables and beer fridges might seem fun, but they’re not going to hook your star players. 

What will actually work? The old classics – feeling valued, respected and safe in a workplace that’s helping you constantly level up. Grand ideas, perhaps, but here we’re putting them into simple actions you can run with. 

What’s employee retention?

Employee retention means that your employees voluntarily choose to stay with your company rather than upping sticks and looking elsewhere. And retaining employees is a critical aspect of any successful organisation. 

High workplace retention, for one thing, is a good indicator of happy employees who are engaged and loyal – that means a good culture and satisfying workplace. 

Why employee retention counts 

We’re not just talking happy employees – retention matters more than you might think. It’s a trillion-dollar issue! 

Yep, you read that right. A trillion dollars.

Collectively, according to Gallup, U.S. businesses are losing a trillion dollars annually due to voluntary turnover. And replacing just one employee can cost a company half to two times the employee’s annual salary. Those are costs that add up way too fast. Think costs that can make or break a company. 

What’s more, anyone who’s worked in an organisation knows: retention doesn’t just impact numbers. Employee loss can mean losing your top talent, innovative edge and culture dynamic. 

High turnover also means less engaged teams, drops in morale, loss of organisational knowledge, less creativity and increased burnout. 

Suffice to say, retention is the holy grail. 

The four key employee retention 'levers'

Sure, but you probably knew all that already. The real question is, how do you keep employees engaged, loyal and satisfied? 

It's a question leaders and HR managers have been asking themselves since the age of time. Well…at least since modern companies were a thing. 

This is where the key employee retention levers come in. These are the levers you can (and should) pull to make your workplace one that’s sticky. 

1. Out with the toxic

Think attrition all comes down to salary increases and promotions? Nope. Effective, empathetic leadership can make all the difference when it comes to retaining talent. 

MIT research, which analysed 34 million online employee profiles, found that the greatest predictor of attrition was a toxic culture. And a toxic culture is 10.4 times more likely to have employees leaving than compensation factors. 

In short, it’s kind of a big deal. 

Culture is related to a sense of belonging, a sense of psychological safety and a respectful, inclusive environment to work in. And it makes sense. If you enjoy your job, feel safe at work and feel supported by those around you, you’re more likely to stay loyal. 

2. Let’s talk growth 

No one wants to feel as though they’re getting left behind. The feeling of being in a role that you’ve squeezed everything out of is, in short, demoralising. 

Having opportunities for growth – whether that’s a promotion, increased sense of responsibility, or training opportunities – matters more than free snacks in the kitchen. 

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

Training, development, mentorship and strong career pathways aren’t just nice-to-have; they’re essential. 

3. It’s all about balance 

Sorry Elon, the workers have spoken. In this post-pandemic world, employees want work-from-home opportunities, flexibility and a work-life balance. 

And why shouldn’t they? 

Being able to work effectively around a busy life – like raising a family, spending time on hobbies and socialising – can be a huge motivator for employees wanting to work for (and stick with) your company. 

Owl Labs research found that employers who allow remote work have 25% less employee turnover than companies that don't. So, why not give the people what they want!? 

4. Money, money, money 

Okay, fine! We won’t pretend those dollar bills aren’t important. It might not be the be-all and end-all, but what your employees earn heavily impacts their experience of work – and life.  

Salary can be the difference between whether they can afford their ideal living situation, pay off college tuition, support their family, or finally take that dream vacay to Mexico. 

Some stats show that salary can be the number one driver of employee turnover. Lattice research found that 55% of employees leave their jobs to find a higher salary. 

So, what you pay your team matters.

The 12 best employee retention strategies

Here’s the kicker: talking about having a great culture doesn’t necessarily mean having a great culture. Neither does offering the vague chance of extra time off or having more “flexible hours” without clarity on what that actually means. The devil is in the details here – it’s all about the specific strategies you can implement to make positive impacts for employees. 

We’ve got you covered with some actionable employee retention strategies. 

1. Say “you’re awesome” more often

Spoiler alert: everyone wants to feel seen and appreciated. It can be seriously frustrating to consistently do good work that goes unnoticed. Then, God forbid, you make a mistake, and you’re made to feel like it’s the worst thing that’s ever happened. Yep, we’ve been there too. 

It should come as no surprise that grand gestures and major salary increases are not always necessary. 

It’s the little things that can add up to be a big deal. 

Like being appreciated for responding to a client outside normal hours. Being recognized as a valuable team player. Receiving a gift card for the holidays you celebrate. 

These small tokens of gratitude can help employees to feel as though they’re respected and valued as part of the team. 

Wanting to show your appreciation? Gifting has never been simpler with Group Card - the whole team signs the card online with zero hassle (perfect for hybrid and remote teams). Loved by office managers and culture champions alike, it’s the simple way to collect messages and money in one go. See how GroupTogether works.

2. Get flexible 

We’re not talking about employees getting better at yoga with the help of some free classes (though that might not be such a bad idea…), we’re talking about flexible work arrangements. 

Can your employees do their jobs from home – at least a few days a week – if and when they need to? Why not give them that flexibility then? It might make a major difference for people choosing to stay with your organization and you might even save on office costs in the process too. 

3. Normalize logging off 

While we’re on the topic of yoga, let’s talk balance. Work-life balance, that is.

Having always-on employees might seem like the ideal. When, really, overworked and overburdened employees are more prone to burnout. They’re also more likely to quit. 

Burnout for American employees is a major issue. Research from Moodle shows that 66% of American employees are experiencing burnout of some kind in 2025. Here’s the kicker. Employees who experience burnout are 2.6X more likely to leave their jobs. 

Encouraging a culture of work-life balance – such as flexible working hours and encouraging your employees to log off in the evenings and weekends – isn’t just good for your employees’ mental health, it’ll mean they’re more likely to stay loyal to your company too. 

4. Invest in growth 

The adage goes, “a rising tide lifts all ships”. Helping your team to learn, grow and develop isn’t just helpful for them – it means raising the entire company. 

Not just that, when you invest in training, mentorship and career progression, you help people to feel a sense of achievement and progression. Keeping them engaged for the long haul. 

Win-win. 

5. Drive culture like it’s ‘25, not ‘95

We shouldn't need to say it, but a toxic culture can impact not just a person’s work, but their life experience too. 

Feeling safe and supported at work is kind of a fundamental right. 

In 2025, a safe and respectful workplace shouldn’t just include reacting to potential harm or allegations of wrongdoing; it means actively preventing those things from happening in the first place. 

In a safe culture, top leaders are supportive, empathic and focused on helping teams do their best work. There’s also a strong emphasis on HR support, where employees feel they can safely raise issues if and when they need to. 

 

6. Get chatty with your teams 

It’s all well and good to assume you know what employees want. But doing one better means knowing what they want. And what better way than to actually ask them?

Friday work drinks might seem like a cool idea, but your team might currently be prioritizing their health and well-being and minimizing how much they are drinking during the working week - or just altogether. It might be that what they’d actually get value from is a free exercise class once a month. Same cost to you: bigger benefit to them. 

Get on their level by prioritizing regular feedback sessions to renew and improve what you offer. 

 

7. Help your crew level up 

Dead-end jobs be gone. One word: progression. 

A clear career path has three clear attributes: the what, the how and the when. Employees don’t want vague promises of future progression; they want a concrete career pathway. 

You can be the company that provides it. 

Offer employees clarity on what the career pathway looks like – what job roles and promotions are potentially available to them in the future, how they can begin working towards that progression and a general understanding of when it might happen.  

 

8. Hire from within the team 

Speaking of progression, while we’re at it, let’s normalise promoting from within the team. 

Rather than constantly seeking outside talent – which can leave your crew feeling despondent – consider how you can nurture your current team to reach for those promotions and shine when they get there. 

A culture of internal promotions helps people to understand that they are part of something exciting that’s worth sticking around for. 

9. Avoid sudden large-scale changes 

Change is an inevitability. And it’s a good thing if you want your organization to remain relevant in an increasingly competitive marketplace. 

Morale can plummet, though, if those changes come in too thick and too fast. 

That’s especially true if changes happen without consultation or any kind of heads-up.

Rather than just telling your employees about large-scale changes right before they happen – keep them in the loop along the way. And tell them why change is occurring. This can promote a sense of ownership and help teams feel as though they’re part of the progress, rather than it happening out of their control. 

10. Prioritize mental health 

Ugh. If you’ve ever struggled with mental health and noticed how much it affected your work and life in general, you’re not alone. 

Mental health stats are just the worst. One in five Americans currently experiences mental illness. So, chances are your employees are impacted in some way. 

Get real about mental health by: 

• Normalizing mental health discussions
• Providing on-site therapy
• Offering subscriptions to meditation apps such as Calm or Headspace
• Having access to resources and tools
• Offering mental health days and personal leave
• Creating psychological safety
• Regularly showing appreciation and care 

11. Get clear on expectations 

It shouldn’t take months (or dare we say *gulp* years) for your employees to figure out precisely what their job is and isn’t. 

Job ambiguity can be anything from confusing to downright stressful. 

Give your employees their best chance of success by making it super crystal clear what it is that their role includes. If they know what success looks like, they’re less likely to go running for the hills and more likely to sprint to the finish line. 

12. Make onboarding less cringey 

Ever sat awkwardly on a first day not knowing what to do? Us too! First impressions count for a lot. So, let’s make those cringey first days a thing of the past. 

A seamless onboarding process includes: 

• A welcome card and kit – for the good vibes
• Intros to key team members – so people don’t feel like they’re on an island
• Clear expectations – for obvious reasons
• Being told where the bathrooms are! (Why is asking on your first day so awkward!?) 

These small things can make the biggest difference. 

In it for the long haul 

Promoting loyalty isn’t just about major salary increases or expensive perks. 

It’s often the small details that can add up over time. These, if done right, can lead to a sense of belonging that no bonuses or free lunches alone can replicate. 

Whether it’s genuinely caring about your team’s mental health. Focussing on flexible work arrangements, rather than a ping pong table your team feels too awks to use. Or offering career progression that’s actually enticing. There are endless employee retention strategies you can use to keep your team satisfied. 

Because when they win – your organization wins too. 

Want a quick way to show your team you care? A Group Card makes it easy to celebrate your team with heartfelt messages from the whole team and a meaningful gift – all done in one link. It’s the simple way to promote positive culture and keep your great people around. Get started with GroupTogether.