Retaining employees in an organisation requires a strategic approach that prioritises their needs, professional growth, and overall satisfaction. According to our Annual Trends Report, which surveyed over 6,000 UK senior decision makers, retaining top talent remains a foremost challenge for organisations. Companies are persistently struggling to retain good employees with the skills, expertise, and knowledge crucial for their success. To address this challenge, here are some strategies to retain employees in your organisation:
1. Embrace agile work practices
Agile work method is a framework that helps companies to respond to changing work style requirements. It’s a two-fold approach where companies can harness employees potential while enabling employees to enjoy flexible work environments.
Adopting agile working model allows businesses to offer diverse work styles such as remote working, flexible hours, and hybrid models, tailored to employees’ needs. Employees can maintain a healthy balance between their personal and professional lives, enhance their engagement, which consequently reduces burnout, while increasing job satisfaction. Furthermore, 76% of companies say agile working allows employees to become ‘as’ or ‘more’ productive, according to our Annual Trends Report.
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Actionable tips
- Conduct a survey to understand your employees’ preferences, needs, and challenges.
- Develop clear policies and guidelines for agile work styles including remote working and flexible hours.
- Invest in technologies like cloud computing to facilitate efficient communication and collaboration among team.
- Support managers with proper training and resources to effectively manage teams (remote or in-office) and establish trust with them.
2. Encourage work-life balance
Promoting a healthy work-life balance is next in our employee retention strategy list. When organisations cultivate a culture that respects and prioritise employees’ time outside the office, they affirm the importance of their personal lives. This creates an environment where individuals feel valued and supported, ultimately leading to longer employee tenure and reduced turnover.
Actionable tips
- Develop such a culture by setting clear boundaries around work hours and encouraging the use of vacation days.
- Focus on employee well-being through wellness programs, mental health support, and promoting healthy habits.
- Offer resources such as time management workshops and stress management seminars that empower employees to manage their time effectively.
- As recognising the diverse needs of your workforce is essential, you should also embrace flexible scheduling that accommodates employees’ personal and family commitments.
3. Build employee engagement
Employee engagement is the emotional commitment employees have towards their work, team, and organisation. Engaged employees are more likely to stay with an organisation, as they feel a sense of purpose and connection to their roles and the overall mission of the company. This not only helps in retaining top talent but also leads to better collaboration and innovation within the company.
Actionable tips
- Conduct regular check-ins, recognition programs, team-building activities, and career development opportunities.
- Provide feedback and listen to employee concerns to ensure that their opinions are valued.
- Encourage open communication and transparency within the organisation to make employees feel connected and engaged.
- Create a positive work culture where employees feel motivated and invested in the success of the organisation.
4. Minimise employee burnout and prioritise wellbeing
The latest Gallup study of nearly 7,500 full-time employees revealed that about two-thirds experience burnout at work. The research also found that employees who frequently or consistently feel burned out are 2.6 times more likely to leave their current job. Employee burnout – stemming from work pressure, reduction in salary and benefits, and job insecurity – is a significant contributor to low productivity. This not only impacts individuals’ well-being but also leads to diminished organisational performance and high turnover rates.
Actionable tips
- To address employee burnout, implement measures such as agile and flexible working options, mental health support, and create an open and supportive work culture.
- Encourage employees to take breaks and utilise their vacation time to recharge and avoid overworking.
- Provide adequate resources and training for managers to identify signs of burnout in their team members and address them effectively.
- Foster a culture that values employee well-being as a top priority.
5. Foster a culture of innovation through technology
In today’s fast-paced and constantly evolving business world, innovation is key to staying ahead of the competition. It encourages a culture of experimentation, where employees are given time to explore new ideas and solutions to foster a sense of ownership, ultimately leading to increased job satisfaction and employee engagement, and high retention rates.
Actionable tips
- Embrace latest technologies like Artificial Intelligence (AI) and cloud to streamline processes and reduce manual tasks, freeing up employees’ time for more creative and innovative work.
- Offer opportunities for employees to learn new technology and upskill themselves through training and development programs.
- Create an environment that encourages open communication and sharing of ideas, where individuals feel empowered to contribute towards business growth.
6. Emphasise Diversity, Equity, and Inclusion (DE&I)
Incorporating Diversity, Equity, and Inclusion (DE&I) into an organisation’s retention strategy is both a business necessity and a moral obligation. Inclusive practices empower employees from diverse background to thrive in the same workplace, share varied perspectives and ideas, and drive innovative problem-solving methods and enhanced company performance. Additionally, when employees feel respected, valued, and vital to their team, their commitment and engagement with the company become stronger.
Actionable tips
To execute effective DE&I strategies that cultivates long-term employee loyalty, consider the following tips:
- Start with implementing bias-free recruitment and hiring processes. Technology plays a crucial role in this case. Our survey reveals that almost two-thirds (65%) are using technology to support diverse hiring and onboarding.
- Focus on creating pathways for career development, recognising diverse talents and contribution, and ensuring equity in leadership opportunities.
- Educate employees to understand and appreciate diversity, equity, and inclusion.
7. Offer competitive compensation and perks
Prioritising fair compensation for employees’ hard work and time is crucial for attracting and retaining talent. When employees receive fair wages that are regularly adjusted as per rising inflation, they can maintain their standard of living, feel satisfied, and remain connected with the organisation.
Actionable tips
- To determine fair pay for workers, companies should first assess the prevailing wage rates in their specific job market. For instance, Forbes Advisor notes that as of April 1, 2024, the minimum wage in the UK for workers aged 21 and above is £11.41 per hour, while it stands £8.60 an hour for those aged between 18 to 20, and £6.40 for those aged between 16 and 17, including apprentices.
- The next step involves researching competitor’s salary offerings and their approaches to raises because offering below-market pay risks losing top talent, which can cost more than investing in fair compensation.
- Besides wages, employers can also consider offering additional perks such as health benefits, retirement plans, paid time off, and other incentives to attract and retain employees.
8. Improve on-boarding process
The on-boarding process is the first impression that employees have of their new organisation. If employees experience poor on-boarding, they may quickly become disengaged, confused, and felt lack of connection with the company. This can lead to long-term retention challenges. On the other hand, when employees feel welcomed and part of the team from day one, they are more likely to embrace their roles and stay with the organisation for an extended period.
Actionable tips
- To retain top talent, you should create an effective onboarding process that provides a warm welcome, clear expectations, and opportunities for growth and development.
- You should ensure that new hires are properly introduced to the company’ culture, mission, and vision from day one.
- You should also provide them access to all necessary technologies, resources, and training that will help employees perform their roles effectively.
9. Offer professional growth opportunities
Offering employees opportunities to grow and develop professionally is a great way for companies to retain good employees. It’s a win-win situation for both employees and employers. Employees enhance their skill-set and career trajectory, while the company benefits from having a skilled and knowledgeable workforce.
Actionable tips
- You can offer employee development opportunities through training, upskilling and reskilling, mentorship programs, support for further education, and options for internal promotions.
- Encourage employees to identify their professional goals and provide them with resources and support to achieve those goals.
- Recognise and reward employees who demonstrate a commitment to learning and development, which can motivate others to follow suit.
10. Employee satisfaction is key to success
Employee satisfaction and churn rates are inversely proportional to each other: as satisfaction rises, churn decreases. Recent research by Boston Consulting Group shows that employees with higher satisfaction demonstrate a 25% decrease in churn rates, and a significant 41% decrease in absenteeism. This is corroborated by a Gallup poll that shows highly engaged teams are 21% more productive.
Actionable tips
- To foster a high level of employee satisfaction and engagement in your company, ensure to give your employees a voice by making them feel listened and showing them that their opinions matter.
- Create a positive work culture where employees feel appreciated, valued for their contribution to the organisation.
- Finally, make sure you have regular conversations with your employees about their career aspirations and provide opportunities for professional growth.
11. Support employees with the software they need
In today’s digital age, equipping employees with software and tools they need is highly crucial for them to work smartly and efficiently. It not only enables them to complete their task better but also shows that their employer values their time, productivity, and success.
Actionable tips
- Organisations should constantly assess the needs of their workforce and invest in technology that supports collaboration, communication, and remote working.
- This can include project management software, cloud-based applications for document sharing and team messaging platforms.
- Provide regular training to employees to ensure they can efficiently use new tools and technologies.
- Monitor and evaluate the performance of implemented tools to ensure they align with organisational goals.
12. Train managers to enhance retention process
A survey by Boston Consulting Group highlights that well-trained managers can minimise attrition risk by 72% and boost employee retention by 3.2 times. What they should have is just right tools, training, insights, and incentives to support their teams. If managers are trained properly, they can effectively communicate with their employees, empathise with them, resolve conflicts, and lead their team in the right direction.
Actionable tips
- Organisations should focus on developing managers’ skills in improving employee engagement, performance management, and effective communication.
- This empowerment allows managers to better understand their teams’ needs and concerns, fostering a more supportive and engaging work environment.
- Provide managers with the necessary tools and resources to identify and address employee burnout, conflicts, and other issues that may impact retention.
13. Appreciate the hard work and milestones of your employees
Employees like to be recognised and acknowledged for their hard work and contribution to the organisation. When employees feel appreciated, they are motivated to continue performing well and stay committed to their company.
Actionable tips
- You can recognise and reward employees by introducing various methods such as public recognition, bonuses or incentives, gifts, or through a simple thank you note. This will not only make them feel valued but also promote a positive company culture where hard work is recognised and celebrated.
- It is also important to celebrate milestones and achievements of employees, such as work anniversaries, completing a project successfully, or obtaining a professional certification
Challenges you might face while implementing these tips
1. Resistance to Change
One the key obstacles you may face when implementing the above tips is resistance to change, particularly when introducing agile work practices or fostering a culture of innovation through technologies. To overcome this hurdle, you can focus on clear communication and showcase the tangible benefits these changes can bring. That way, you can ease the transition and foster buy-in.
2. Budget Constraints
Our Annual Trends report reveals that over 51% of companies say that cost is their biggest barrier when trying to implement new technology. This can also be applicable to other initiatives such as offering competitive compensation or providing professional growth opportunities. You can address budget constraint issue by analysing your company’s finances and prioritising the areas that will have a significant impact on employee retention.
3. Balancing work flexibility with productivity
While agile work practices and encouraging work-life balance are critical to employee satisfaction, organisations often encounter difficulties in finding the right balance between flexibility and maintaining productivity. Remote work setups, for example, can sometimes lead to communication challenges, decreased collaboration, or performance management issues. Implementing frameworks to track goals without micromanaging is an essential yet tricky aspect to manage.
4. Lack of managerial training
Effective retention also depends on how well managers are equipped to recognise and respond to employee needs. However, many organisations fail to adequately train managers to foster engagement, minimise burnout, and improve on-boarding processes. Without proper training, managers may inadvertently become a barrier to retaining skilled talent, leading to frustration and turnover among team members.
5. Measuring employee satisfaction effectively
Employee satisfaction is key to retention but measuring it can be complex. Traditional tools such as annual surveys may not provide timely or actionable insights. Furthermore, organisations often struggle to translate abstract metrics, like satisfaction levels, into concrete strategies for engagement and wellbeing. This disconnect makes it challenging for you to proactively address concerns before they lead to turnover.
6. Ensuring inclusive practices are embedded
Building a culture that genuinely emphasises Diversity, Equity, and Inclusion requires more than policies—it demands consistent effort, employee participation, and leadership commitment. Organisations may face pushback or struggle with unconscious biases, making it difficult to fully integrate DE&I into everyday operations. Without sustained efforts, DE&I initiatives may fail to achieve the desired impact, leaving your employees feeling excluded or undervalued.
Why do employees leave an organisation?
Retaining employees within your organisation is important, but knowing the key reasons why employees leave your companies are equally crucial to establish an effective retention strategy, Here are some key reasons why employees leave companies:
- Lack of career advancement opportunities
- Insufficient compensation and benefits
- Poor work-life balance and high stress levels
- Unsupportive company culture
- Ineffective management and leadership
- Limited professional development prospects
Why is employee retention important?
Here are some key benefits of retaining employees in an organisation:
- Cost-effective: The cost of hiring and training new hires is much higher than retaining existing employees. Therefore, employee retention is a cost-effective strategy for businesses.
- Increased productivity: Employees who have a long-term commitment to the company are more motivated and productive, leading to higher output and enhanced company performance.
- Stronger company culture: Retaining experienced employees help maintain organisational values and promotes a stable work environment, ultimately building a stronger company culture.
- Employee satisfaction: When employees feel valued, supported, and have opportunities to grow within the organisation, they are more likely to be satisfied with their job and remain loyal to the company.
How OneAdvanced can help with employee retention?
At OneAdvanced, we understand that retaining talented employees is not just about offering lucrative salaries or perks; it’s about creating a supportive work environment where individuals feel valued and engaged. That’s why, we offer a suite of People management solutions that help you to implement above tactics to enhance employee retention and set yourself on a path toward sustainable success.
Are you interested in the latest insights on how companies are performing in attracting and retaining top talent? Download our 9th Annual Trends Report 2024/25 to access valuable data and expert analysis, along with strategies to address these challenges.
Frequently Asked Questions (FAQs)
How to retain top talent without increasing salary?
Offering non-monetary benefits such as flexible work arrangements, professional development opportunities, and positive company culture can help retain talent without increasing salary. Focusing on recognition programs, enhancing work-life balance, and ensuring meaningful engagement in projects can also make employees feel valued, boosting their satisfaction and commitment to the organisation.
How to retain employees after resignation?
To retain employees who are leaving, offering a counter-offer with enhanced roles, responsibilities, or compensation may help. Additionally, addressing their concerns, providing a path for career growth, and ensuring a supportive work environment can make the employee reconsider their decision and remain with the organisation.
How to retain millennial employees?
Millennial employees value flexibility, career development, and a sense of purpose. To retain them, offer flexible work options, invest in their professional growth through training and educational programs, and foster a culture that aligns with their values. Regular feedback, recognition, and opportunities for meaningful work can also enhance their commitment to the company.
How to retain employees after an acquisition?
After an acquisition, it's essential to communicate openly and transparently with employees about the changes and how it will affect their roles. Be sure to address any concerns they may have and provide support during the transition period. Offering training opportunities, career development programs, and involving them in decision-making processes can also help retain employees after an acquisition.
How to retain employees when your competitors keep poaching them?
To retain employees when competitors are actively poaching, focus on creating a workplace that employees don’t want to leave. This includes offering competitive compensation and benefits packages, fostering a positive company culture, and ensuring employees feel valued and respected. Regularly assess and address employees’ needs through surveys and one-on-one discussions to stay ahead of potential dissatisfaction.
Additionally, prioritise career development and growth opportunities. Providing clear advancement pathways, mentorship programs, and upskilling opportunities reassures employees of their future within the company.
How to retain employees when morale is low, and stress is high?
During periods of low morale and high stress, you should focus on actively supporting employee well-being and addressing the root causes of their concerns. You should provide resources such as counselling, stress management workshops, and wellness programs to help employees feel supported. Open communication is key—hold regular check-ins and encourage honest feedback to understand and resolve their pain points effectively.