Employee turnover is expensive, with many estimates placing the cost of replacing an employee at 25-200% of the employee’s salary. By introducing policies and norms that increase employee retention, such as offering career growth, creating a balanced workplace, and finding the right-fit employees who can be long-term contributors to the company, you can reduce turnover and create a stronger company. So, what are some ways in which companies can attract and retain employees?
Improving Recruitment Strategies
First, it’s important to select applicants who are likely to be a good long-term fit for your business. Here are some general best practices for improving your recruitment approach:
- Update your job descriptions. Your HR team may use boilerplate JDs, or they might not have a direct understanding of the roles and responsibilities a new hire will have. Have an HR contact and the direct hiring manager work together to make a job description that is accurate, comprehensive, and compliant with any applicable regulations.
- Streamline the recruitment process. While it’s important to thoroughly vet potential employees, it’s just as important to have a concrete and transparent journey. A long or uncertain interview process means many candidates will get frustrated and give up, or may be hired by a competitor. Make sure your recruiters or candidate-facing contacts can give each applicant a clear breakdown of the process and minimize any delays or extra steps.
- Prioritize long-term goals. Look for candidates who want a long-term future with your business, not just the right soft skills or hard skills. You can train new hires on the ins and outs of your business, but you can’t motivate someone looking for a short-term step to stay with your company over a long period.
Fostering Employee Engagement
One of the best benefits for employees is work that gives them purpose. Administrative and repetitive work can be tedious and make employees feel undervalued, especially if it eclipses the creative and meaningful work they want to pursue. Here are some helpful ways to keep employees engaged:
- Offer plenty of opportunities for career advancement and specialization within your business. Supporting employees as they cultivate a career path is the best way to make sure they stay with your business.
- Develop multi-layered feedback mechanisms. This can include one-on-ones with team leads and direct reports, team-wide meetings, and multiple channels where employees can directly or anonymously give feedback. Encourage everyone to give feedback regarding projects, work levels, knowledge resources and workplace tools, and the work environment. And once you start receiving feedback, make sure employees can see tangible efforts to use it!
- Give employees responsibilities, not just tasks. Many professionals want to be involved in strategy, roadmaps, and critical decisions. If they are just assigned tasks, they can disconnect from the work and not be part of the company’s wider vision. But by giving employees more control over their workday and different objectives, you can build more employee engagement.
Creating a Positive Workplace Culture by Addressing Why Employees Leave
Company culture has always been seen as a key driver of employee satisfaction, but too often efforts to improve it focus on surface perks or vague morale boosters. If you want to reduce turnover, you need to understand why employees are leaving in the first place and take action in those areas.
Research has shown that the top reasons employees quit include career development, manager behavior, and work life balance. These are not abstract concepts but the daily realities that shape whether people choose to stay or go. Here’s how you can respond in a way that truly strengthens your culture:
Focus on Career Growth
People want to grow. When they don’t see a future at your company, they will eventually look elsewhere. Strong cultures encourage internal mobility, provide meaningful development opportunities, and ensure that career conversations are happening regularly between managers and their teams.
Address Manager Effectiveness
Employees often leave because of the person they report to. If a manager creates stress, ignores concerns, or lacks basic leadership skills, employees will disconnect. Organizations need to support and train their managers, and just as importantly, hold them accountable for the employee experience they are creating.
Support Work Life Balance
Employees expect flexibility and support for life outside of work. When workloads are unreasonable or scheduling is inflexible, burnout increases and retention suffers. Offering options like remote work, flexible hours, and wellness resources sends a clear message that you value your people.
Go Beyond the Surface
Celebrating birthdays or offering free coffee is nice, but it doesn’t fix deeper cultural issues. Real culture is built through consistent behavior, trust, and leadership accountability—not slogans or social events.
Contact Us at Work Institute to Learn More About Employee Retention
At Work Institute, we help companies identify the best benefits for employees that will lead to longer retention, more growth, and better outcomes. Whether those new approaches include competitive benefits, new workplace norms, or an updated recruitment process, Work Institute is here to help.
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