How to Improve Employee Retention: Workforce Strategies That Actually Work

If there’s one thing I’ve learned in over 35 years of building teams, it’s that keeping great people is both an art and a strategy. Turnover is expensive, disruptive, and more often than not, preventable. Sandra Coker, CEO of Human Power Solutions, puts it plainly: when you have high employee turnover, “You are just throwing money out the window.” 

The data backs her up. According to Mercer’s 2025 US Turnover Survey, the average voluntary turnover rate currently sits at 13%, down from 17.3% just two years ago. That’s encouraging, but it doesn’t mean the pressure is off. Plenty of organizations are still losing people they can’t afford to lose. And according to Gallup, replacing a single employee can cost anywhere from half to twice their annual salary.

That’s why understanding how to improve employee retention isn’t just an HR priority; it’s a business imperative. Most of the factors driving turnover are within your control. Below are the employee retention strategies I’ve seen work consistently across organizations of all sizes, whether you’re managing a team of ten or ten thousand.

Why worker retention matters more than ever

A lot of companies treat retention as a reactive problem. Someone puts in their notice, and then the scramble begins. But the most successful organizations treat it as a proactive one. They ask: what does our team need to stay?

The answer rarely comes down to money alone. Gallup’s 2025 State of the Global Workplace report found that only 21% of employees globally are engaged at work, costing the world economy $438 billion in lost productivity. Gallup also found that 51% of U.S. employees are either actively seeking or watching for new job opportunities. That’s roughly one in two people on your team keeping an eye on the door.

Critically, 42% of employees who voluntarily quit say their manager or organization could have done something to prevent it. That’s a significant window of opportunity. If you can identify the friction points before someone starts updating their resume, you’re already ahead.

Good talent retention starts with understanding what your employees actually value, then building an environment that consistently delivers it. Ask your team directly, through surveys, one-on-ones, or stay interviews. Those answers will point you to where to focus first.

Build a culture of recognition

One of the most underrated staff retention ideas is also one of the simplest: tell people they’re doing a great job. Employees who feel recognized and appreciated are far less likely to look elsewhere, and the impact compounds over time. Employees who feel genuinely valued tend to stay longer, perform better, and become advocates for your culture, which pays dividends in employee loyalty and referrals.

A practical way to start is a company “good news” channel, whether in Slack, Teams, or your communication tool of choice. Dedicate it to wins, customer compliments, and employee shout-outs. Flooding your internal airwaves with positive momentum creates a ripple effect on morale that’s easy to underestimate.

For more personalized recognition, consider running an employee recognition survey to learn how your team prefers to be appreciated. Not everyone wants to be called out in a company-wide meeting; some prefer a quiet word from their manager, a handwritten note, or simply being given more autonomy on a project they care about. Knowing the difference matters more than most managers realize.

You can also tie recognition into your talent retention strategy by linking it to milestone achievements, project completions, or tenure. Meaningful, consistent recognition builds loyalty over time.

Create a sense of community

A good sense of community at work is one of the most powerful, and most overlooked, elements of how to increase employee retention. When people feel like they belong somewhere, they want to stay. When they feel isolated or invisible, they don’t.

This is especially true for distributed or hybrid workforces. Remote employees often miss out on the spontaneous interactions that build real connection, and bridging that gap takes intentional effort.

Last summer, we brought our remote employees together for The Great Fruit Carve-Off, a high-energy, hands-on culinary event where teams sculpt fresh produce into show-stopping centerpieces. We flew everyone in, gathered around the tables, and spent the afternoon laughing, competing, and making something none of us expected. It was one of those days where you could feel the room shift. Remote employees who’d only ever seen each other on screens were suddenly working side by side, realizing how much they genuinely liked each other.

That kind of connection doesn’t happen on a video call. And the impact on how people felt about showing up the following week was real.

Fun employee retention ideas like this are more than morale boosters. They’re investments in the relationships that give work meaning and make people choose to stay. Activities built around shared experience, laughter, and creativity create the social fabric that holds teams together through the harder stretches of work.

Offer room for growth

If I had to name the single most common reason talented people leave, it would be this: they don’t see a future for themselves where they are. Career development opportunities consistently rank among the top drivers of both engagement and employee retention.

Mercer’s data makes this concrete. Executives and senior leaders have a voluntary turnover rate of just 5.2%, while para-professional and blue-collar roles sit at 12.5%. That gap doesn’t exist by accident. Higher positions tend to offer more autonomy, clearer paths forward, and stronger support structures. When you build those same elements into roles at every level, you reduce the incentive to leave at every level.

Growth doesn’t always have to mean promotions, though those matter. It can also mean developing new skills, taking on stretch assignments, or building confidence as a leader. The key is signaling, regularly and concretely, that there is a path forward, and that your organization is invested in helping people walk it.

Two programs we recommend for building leadership and team effectiveness from within:

• Leadership Stories: A gamified leadership development experience where teams work through real-world business challenge scenarios together. Entertaining, enlightening, and effective at keeping even the busiest leaders engaged.
• Taking Groups to Great Teams: A workshop where participants discover what separates a loose collection of individuals from a truly high-performing team. They clarify their role, develop a shared mission, and leave with a clear framework for sustained performance.

Both are part of our broader professional development programs and send an unmistakable message to employees: we’re invested in your growth, not just your output.

Be transparent about compensation and benefits

Compensation isn’t the whole retention story, but pretending it doesn’t matter is a mistake. Employees notice when their pay doesn’t reflect their contributions, and in a competitive job market, they have options.

Regular salary reviews and performance-based incentives form the foundation of any solid worker retention strategy. But Mercer’s research adds an important layer: transparency matters as much as the numbers. Employees who understand how pay decisions are made, and believe the process is fair, are more likely to trust the organization and stay. Being open about how compensation works, how raises happen, and what advancement looks like gives people the clarity they need to commit long-term.

Beyond salary, think about what else your team values. Flexible scheduling, remote work options, mental health support, and professional development stipends are increasingly important differentiators. Understanding what employees value most is one of the smartest investments a leader can make in their retention strategy.

Support work-life balance

Burnout is one of the fastest paths to turnover, and it’s more preventable than most leaders realize. Mercer identifies burnout as the primary driver behind voluntary departures, whether it stems from too much work, inadequate pay, poor benefits, or an unsupportive manager. When employees feel like their job is consuming their whole lives, they start looking for the exit.

Supporting work-life balance doesn’t require a dramatic overhaul. Flexible hours, protected time off, and managers who model healthy boundaries go a long way. When employees feel the organization genuinely cares about their wellbeing, they’re more likely to stay.

Team building plays a real role here too. Activities that prioritize fun, laughter, and connection give employees a chance to recharge while reinforcing their sense of belonging. The benefits of team building extend well beyond the day of the event; they create shared memories and strengthen the relationships that help people stay engaged through whatever comes next.

Don’t underestimate onboarding

Employee retention starts earlier than most people think. Research consistently shows that employees who have a strong onboarding experience are far more likely to stay long-term. A disorganized first few weeks sends the wrong message before someone has had a chance to find their footing.

A thoughtful onboarding process should connect employees to the culture, introduce them to their team, and give them a clear picture of what success looks like in their role. From day one, they should feel like they landed somewhere worth staying.

Lean into change management

One area that often gets overlooked in the how-to-improve-employee-retention conversation is change management. Organizations go through transitions constantly: new leadership, restructuring, acquisitions, technology shifts. How a company handles those moments directly affects whether employees feel secure or start looking for the door.

Change management training and empathetic leadership help teams build the resilience to navigate uncertainty without losing confidence in the organization. When employees feel supported through change rather than blindsided by it, they’re far more likely to stay committed to the work ahead.

The bottom line on how to improve employee retention

Retention rates are a mirror. They reflect how well your organization is living up to its promises to its people. Companies that lead with culture, invest in growth, build community, and communicate with transparency rarely struggle with retention. Those that don’t tend to find themselves in a constant cycle of recruiting, onboarding, and losing people all over again.

Every strategy above is within reach. You don’t have to do all of them at once. Start where your team needs it most, and build from there. We have a huge selection of events and activities to help youtube there. And if you want a partner in figuring out how to improve employee retention at your organization, we’re here.