20 Strategies for Employee Retention in the Workplace

By Indeed Editorial Team

Published June 2, 2022

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

An essential feature of a successful organization is retaining employees after hiring them. The business world is constantly evolving, and other companies may employ different strategies to attract employees, such as offering higher salaries and benefits. If you work in human resources or management, understanding retention strategies can help you ensure that employees are satisfied and happy. In this article, we explore a list of 20 strategies aimed at employee retention.

20 strategies for employee retention

Here are 20 strategies for employee retention you can apply in the workplace:

1. Start with orientation and onboarding

You can use orientation and onboarding programs to integrate new employees into the organization. The onboarding procedure may explain the employee's role, duties, and the company's culture. To ensure onboarding is successful, you can offer support and training from the first day. You can also consider developing mentoring relationships or buddy systems. These processes entail pairing experienced employees with new employees to continue the orientation and onboarding process. This arrangement can benefit both parties as it helps the employee get training in exchange for offering a new perspective on the company's operations.

2. Provide adequate compensation and benefits

It's important that the benefits and compensation packages employees receive are proportional to the amount of work they perform in the company. In a competitive market, ensuring that employees feel properly rewarded represents an essential retention tool. An attractive package may include a competitive salary, supplementary health care coverage, and performance-based bonuses. In addition, the company may offer other perks to improve employee morale, such as wellness programs, flexible working hours, childcare benefits, or professional development benefits.

Related: 12 Different Types of Bonuses (Definition and How They Work)

3. Pace the workflow

It's advisable to allow employees to take breaks when working. While you may expect high-quality performance from employees, it's essential to avoid putting them under constant pressure. Employees who have time to take a break and relax may be more efficient and effective than those who don't. Consider offering several breaks during the day or organizing activities for employees outside the workplace from time to time.

4. Communicate clearly

Excellent communication skills and open channels are effective tools for employee retention. It's advisable to communicate what you expect from employees regularly. You can consider organizing regular meetings with staff members to discuss these expectations and how they can meet them. You can also set up internal messaging platforms for employees to connect. These platforms can help prevent employees from feeling isolated, encouraging them to stay in the company. You can also communicate strategic decisions via an intranet to ensure employees at every level feel involved in the process.

5. Offer awards and recognition

Offering awards and recognition can help employees know that you appreciate their work. While public recognition is an effective strategy, you can also send individuals a sincere e-mail or a handwritten note detailing how their work contributes to the organization's success. When deciding how to reward employees, it's advisable to consider a reward that answers their emotional needs. Some alternatives to monetary compensation include a gift card, an extra day off, logo clothing, or a company party. If you work with a small team, you can set up these recognition programs with a smaller budget.

Related: When to Send a Thank-You Team Message (With 16 Examples)

6. Develop internal employees

Internal development entails preparing employees for advancement. Developing employees can help improve the retention rate and drive productivity while encouraging the continued growth of the employee and the company. You can use these employees to fill up higher positions when they're ready. This strategy helps the company save funds on recruiting and training new employees. It also ensures a seamless transition, as they're already familiar with the company's operations and culture.

7. Provide a feedback platform

This platform refers to management software that gathers and analyzes feedback data and converts them into strategic decisions. You can use these feedback platforms to understand employees' satisfaction levels and work towards improving them. Creating an opportunity for employees to give feedback freely helps create a healthy environment and shows you value their opinions.

8. Foster teamwork in decision making

It's important to ensure that employees can offer suggestions and contribute ideas when the team works together. You can build an environment that fosters collaboration by allowing employees to express their different work styles and contribute to the decision-making process. These practices can help increase engagement and retention by making employees feel responsible for organizational success.

9. Invest in professional development programs

These programs refer to continued training and education programs that help employees develop in their careers. The company can contribute to its employees' development by offering tuition reimbursement and paying for relevant training. Companies may also send employees to conferences and other annual industry events.

Investing in the professional development of employees gives them the opportunity to learn the necessary skills to succeed in their roles or future positions. It also allows the company to remain competitive by ensuring employees are up-to-date on industry practices. Finally, creating an environment that challenges employees to grow can help them feel engaged and motivated.

10. Encourage work-life balance

Creating a healthy environment that offers a stable work-life balance can improve job satisfaction and increase retention rates. For example, you can promote a healthy work-life balance by compensating employees with days off or late arrivals if they work extra hours to meet an important deadline. You can also create incentives in the workplace, such as wellness and fitness programs. Creating a flexible working arrangement that allows them to work from any location is another effective strategy.

Related: What Are Flexible Work Arrangements? (Pros and Cons)

11. Share the company's revenue

Revenue sharing refers to a strategy in which an organization shares its profits with those who contribute to the company. For example, you can retain employees by linking a percentage of their wages to the business's overall performance. Revenue sharing ensures that the company rewards employees as it grows. It also helps align the employees' personal goals with the company's profit and revenue goals.

12. Provide quality supervision

Being a consistent and effective leader is one way to boost employee retention. Besides external factors, organizations typically deal with positive and negative changes. In such situations, employees may look to managers and team leaders for insight and guidance. By keeping employees informed, you can help them perform their duties efficiently and make them feel like a part of the company, irrespective of the situation. You can make announcements individually or in group meetings and allow them to ask questions about the situation.

13. Allow employees to apply their skills

It's important to identify and learn about employees' talents, skills, and professional experiences. You can also allow them to apply these skills outside their job description. Encouraging employees to try new activities that fit their skillset can help challenge them and motivate them to grow.

14. Give employees responsibilities

Delegating tasks to employees and encouraging them to work with autonomy can help make them feel more passionate and encourage them to take on more challenges. Giving employees freedom shows that you trust their judgment. It can also help improve overall efficiency, productivity, and engagement in the workplace.

15. Offer flexibility

Flexibility in the workplace can help improve retention by reducing stress. You can create flexible working arrangements, such as giving employees the option of choosing a compressed workweek or flextime. This allows them to choose whether they want to start or end the day earlier or later, depending on what suits them. You can also offer hybrid working options, such as working from home once or twice a week.

Related: Workers' Perks and Benefits: 20 Most Common and Explanation

16. Encourage employees to be themselves

Promoting authenticity in the workplace is another great retention strategy. For example, an office might implement casual Fridays to allow employees to dress as they wish and encourage personal autonomy. Encouraging free expression can improve employee satisfaction and lead to higher retention rates.

17. Communicate the company's values

Sharing the company's values can help ensure that employees work towards a shared objective. Having a clear goal and encouraging employees to work towards it creates a sense of purpose and belonging that helps the company attract and retain employees. Communicating the company's values also presents employees with helpful information to make career decisions.

18. Make the workplace engaging

Encouraging strong relationships can make the workplace more engaging for some employees. For example, you can organize team activities where employees have a chance to interact in a more informal setting. These activities can help create and strengthen bonds which improves collaboration and drives productivity. It may also help employees create personal friendships, motivating them to come to work and remain at the company.

19. Practise exemplary leadership

Managers and team leaders can take advantage of the company's perks and take part in activities with team members to foster a positive work environment. This approach can also help demonstrate your commitment to the company's culture and encourage others to join. For instance, if the company has an on-site gym, managers can demonstrate their commitment to the wellness program by training alongside employees. Holding managers to similar standards as employees helps them trust and commit to the company's system.

20. Celebrate milestones

It's important to acknowledge and celebrate milestones. These celebrations allow employees to reflect on their performance and allow you to appreciate them. You can make these events memorable by organizing a dinner or group excursion.

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