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Employee retention strategies are essential for keeping workers engaged. They’re also key to cultivating an environment that encourages passion and commitment. And the stakes are high for companies because a revolving door of talent not only means higher recruitment costs but also decreased productivity and institutional knowledge. A workforce that feels valued isn’t merely a strategy—it’s the bedrock for organizational well-being.
Lyra Health’s 2024 State of the Workforce Mental Health report found that traditional approaches to improving well-being just aren’t working. As a result, employees continue to struggle, while managers who must navigate teams find themselves ill-equipped to address the issues head-on.
Top 12 employee retention strategies
Perks of the past like catered lunches, gym memberships, and game rooms are no longer working. Periodically reevaluating and updating employee retention strategies can help ensure sustained employee satisfaction and engagement. Employee retention strategies should also be deliberate, and backed by leadership. Managers and supervisors are busy and may not prioritize people-related issues if they don’t feel team retention is a concern for leadership.
Here are a few staff retention strategies to keep workers happy and engaged:
#1 Offer a competitive compensation package
Salary is important when considering how to retain employees, but it isn’t the only priority. Employees look at the whole package, including paid leave and benefits. In a Glassdoor survey, about 60% of employees said that they strongly consider a company’s perks and benefits before accepting a job offer. And 79% preferred additional benefits over a pay increase.
One of the most in-demand benefits is mental health support. Employees are increasingly expecting mental health benefits as part of their compensation package.
- 8 in 10 workers say that how organizations support employee mental health will be an important consideration when they look for their next job
- 35% of workers said mental health benefits are more important than salary or higher pay
- 42% of employees with access to mental health benefits said they’re more likely to stay at their current organization than if they didn’t have those resources
- 20% of employees are considering leaving their company due to their mental well-being, according to our 2024 State of the Workforce Mental Health report
Employers recognize that mental health benefits help their organization, too. According to our 2024 Workforce Mental Health Trends report, 94% of surveyed benefit leaders believe that offering mental health benefits is “very important” to prospective employees versus 36% who said it was important last year. HR professionals believe providing mental health resources can boost productivity, increase ROI, improve employee retention, and improve talent attraction.
Recognizing these positives, more companies are offering mental health benefits as part of their talent retention strategy to help workers get the care they need and drive business success.
#2 Create a positive recruitment and onboarding experience
Retention in the workplace starts with people’s earliest interactions with your organization. The recruitment experience should give prospective employees a clear sense of their role and expectations, as well as the company culture. Effective onboarding provides new hires with the knowledge and tools to start building connections, integrate into the culture, and be successful. This is also an important time to introduce your mission and values. One study found a great onboarding experience can improve employee retention by 82%.
#3 Design a positive work experience and company culture
The best staff retention strategies are designed to both retain employees and attract new talent. If you focus on making the workplace as desirable as possible, current employees will stay and your organization is likely to attract more new employees. According to our 2024 State of the Workforce Mental Health report, more than half of employees (64.1%) say that if their employer took actions to improve the work conditions that negatively impact their mental health, it would increase their job satisfaction.
#4 Set reasonable expectations
Realistic expectations contribute to job satisfaction by reducing potential frustration over unattainable goals. Realistic expectations also play an important role in employee retention programs because they build transparency. Unclear expectations and poor transparency can lead to higher anxiety, loneliness, and stress.
#5 Clearly define roles and responsibilities
Defining roles and responsibilities is a core part of retention strategies. Doing so provides employees with a sense of purpose and clarity in their contributions to the organization. This reduces ambiguity, enhances job satisfaction, and fosters a positive work environment that helps support your talent retention strategy.
#6 Provide growth opportunities
Employee retention strategies should include growth and development opportunities such as career path options, continuing education, training, mentoring, and advancement within the organization. When employees see a clear path for growth it strengthens their commitment to the company.
#7 Celebrate small and big achievements
Recognize employees’ efforts and contributions on an ongoing basis—not just after completing big projects or goals. Clearly communicate your organization’s values and how employees are contributing to the mission.
#8 Offer mentor programs
Mentor programs can enhance employee retention strategies by fostering a sense of professional development and engagement, providing support that helps employees navigate challenges and grow within the organization. The mentor-mentee relationship can create a strong sense of belonging and connection.
#9 Provide regular check-ins and feedback
Provide consistent feedback so employees understand their strengths and opportunities, as well as channels for providing leaders feedback such as surveys and weekly one-on-one meetings.
#10 Offer flexibility and accountability
Employee loyalty may increase when organizations offer remote or hybrid work arrangements or flexible hours. In a FlexJobs survey, 80% of workers said they’d be more loyal if they had flexible work options. Another survey found a third of workers sought out a new job because their current workplace didn’t offer flexible work opportunities. When workers know that management trusts them to manage their time, their sense of autonomy and job satisfaction improves.
#11 Train managers
The quality of the employee-supervisor relationship is a big factor in an employee retention program. In a Gallup survey, only 2 in 10 employees strongly agreed that they’re managed in a way that motivates them to do outstanding work. The right training can improve managers’ communication skills and help them create psychological safety, so employees feel comfortable sharing ideas and concerns. It can also equip managers with tools to recognize and respond to stress, burnout, and other concerns.
#12 Foster a sense of community
People are more likely to stay when they have close ties with their co-workers and feel a sense of belonging. You can help nurture these relationships through mentorship, shared learning experiences, team-based projects, employee resource groups, and formal and informal social activities.
These 12 retention strategies can also help increase engagement—and engaged employees are five times less likely to leave than those who are not engaged.
Get started: 6 steps to effective employee retention programs
Robust employee retention strategies can help attract and retain talent and reduce costs. But how do you create an employee retention program that works for your organization? Here are a few key steps:
#1 Assess whether turnover is a problem
Is turnover a problem? Could improvements help your organization achieve its goals? Answer these questions with data gathered from exit interviews, benchmarking, employee focus groups, and other sources.
#2 Review recruitment practices
In order to understand what’s needed, it’s necessary to grasp what’s already happening. Are you hiring the right people, clearly defining job roles, and providing an organized onboarding experience?
#3 Consider the needs of diverse and global workforces
Employee retention strategies can be challenging for highly diverse and global companies to implement. There are often cultural and national differences in expectations for pay, benefits, work assignments, and other aspects of work. There are also unique considerations for retaining employees on foreign assignments, such as addressing isolation and reverse culture shock through repatriation planning.
#4 Implement retention strategies
Make a plan to put staff retention strategies into action based on key metrics like satisfaction surveys, turnover rates, and performance evaluations. Your employee retention program may include initiatives like professional development, transparent communication, and feedback on opportunities and work environment.
#5 Track and evaluate results
Review turnover data, promotions, number of grievances, and other metrics consistently. Many organizations evaluate and report on their progress monthly. Then make any needed adjustments to your employee retention strategies based on what you learn.
#6 Get support
Implementing an employee retention program can be complex and time-consuming and just “one more thing” for busy HR leaders. Lyra can help you assess your workplace, analyze data, and develop and implement employee retention strategies designed specifically for your organization.
Be an employer of choice for top talent
High turnover isn’t inevitable, but trendy perks aren’t the most effective employee retention strategies. When you design a workplace that people enjoy and provide benefits that make a real, lasting impact, you’re positioned to not only attract the right talent but also keep them happy and engaged long term.
Get more tips for reducing employee turnover and boosting retention
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By
The Lyra Team
5 of March 2024 - 7 min read
Mental health at work
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