ENGAGE AND RETAIN: 10 EFFECTIVE EMPLOYEE RETENTION STRATEGIES

The Great Resignation. Quiet Quitting. The Great Reshuffle. The Big Quit. There is an array of viral phrases and trends all encapsulating the same challenge organizations have been facing for decades: employee retention.

While the struggle to retain talent isn’t a new phenomenon; Gallup’s latest report shows that half of U.S. employees (51%) are watching or actively seeking a new job. Even though employee turnover rates have stabilized since the pandemic due to the slowdown in both the economic and job markets, there’s been a recent upward trend in employee turnover. 

It's no wonder why, according to our comprehensive C-Suite Perspective report, which is worldwide survey of tech leaders (including CIOs, CTOs, CISOs, and CEOs), talent retention is one of the top three key challenges (27%) that has executives concerned.  

Want to read the full report? Download it here →

Understanding why employees leave is the first step toward creating a workplace environment that fosters loyalty and engagement. Factors such as lack of career advancement, poor management, and inadequate work-life balance often contribute to employee churn. 

By implementing targeted employee retention strategies, companies can not only reduce turnover, but also cultivate a motivated and committed workforce that drives long-term success. Let’s explore some of the reasons why employee retention is so important, and the 10 most effective strategies to help organizations in their efforts to retain top talent.

At its core, employee retention refers to an organization’s ability to keep its employees engaged and committed to their roles over time. This involves various strategies aimed at creating a supportive work environment where employees feel valued, motivated, and invested in their role within the company. High retention rates indicate a stable workforce, while high turnover rates can signal deeper issues within the company culture or management practices.

Looking at the bigger picture, employee retention is about more than just fostering a supportive work environment—it is an essential component for growth. Why? Because it leads to a number of other benefits, just to name a few:

• Reduces costs: The less turnover in an organization, the less budget has to be sunk into recruitment and training costs. 
• Improves efficiency: When employees stay longer, organizations get to leverage their experience and expertise, leading to improved efficiency and innovation. 
• Attracts more top talent: A committed workforce promotes a positive company culture. This sense of stability not only boosts employee satisfaction, but also attracts top talent, as prospective candidates are drawn to companies known for valuing and retaining their staff.

In short, effective employee retention is a cornerstone of sustainable business growth, enabling organizations to build a resilient, skilled, and loyal team that drives long-term success. Let’s take a look at some effective employee retention strategies: 

1. Provide learning opportunities for growth and development

Investing in employee growth is key to retention. According to McKinsey, the most effective organizations provide an average of 75 hours of training per employee annually. In return, they see higher promotion rates for employees and achieve higher employee retention rates compared with companies that do not invest heavily in learning. 

Skillsoft offers a blend of self-paced online courses, hands-on practice, virtual live online classes, and coaching to propel people and organizations to grow together. These learning programs are available anytime, anywhere, on any device. Try our AI-driven, online learning platform, Percipio, for yourself →

2. Outline clear career paths

In addition to providing learning opportunities for growth and development, companies need to clearly outline clear career paths within the organization. This transparency encourages employees to envision their future with the company, reducing turnover rates through minimizing the feeling of stagnation. 

By prioritizing career pathing, organizations demonstrate their commitment to employee growth, leading to a more loyal and dedicated workforce. Delve into our Aspire Journeys, which are guided learning paths designed to advance careers →

3. Build strong manager-employee relationships

Managers play a crucial role not only in building a company culture, but also in employee retention. Encourage leaders to foster open communication, provide constructive feedback, and show genuine interest in their team members' career aspirations. These strong relationships can significantly enhance job satisfaction and loyalty.

Leadership training programs are essential for businesses that want to cultivate strong leaders as they look to attain, retain, and develop talent. See our comprehensive library of leadership and coaching courses →

4. Enhance the onboarding processes

A strong onboarding process sets the tone for an employee’s experience, so it’s vital to ensure new hires receive comprehensive training, mentoring, and support during their transition. A positive onboarding experience can lead to higher retention rates in the long run.

Creating a structured hiring process can help companies find the right talent and retain them through recruiting, interviewing, hiring, and onboarding. Check out our recruiting, hiring, and onboarding Skill Benchmark to get started →

5. Foster an inclusive work environment

A positive workplace culture that encourages teamwork, celebrates achievements, and recognizes individual contributions contributes significantly to employee retention. Creating a diverse, equitable, and inclusive environment where everyone feels respected and valued not only enhances overall job satisfaction, but according to Boston Consulting Group research, diverse management teams tend to also achieve 19% higher revenue.

By building DEI skills through DEI programming, companies can cultivate an organizational culture centered around the needs of their employees. In turn, they can learn, inspire, and do their best work, which directly translates to an organization’s success. Discover our DEI training programs →

6. Offer competitive compensation and benefits

Not having a competitive salary is one of the biggest reasons why employees look to change companies. As a result, it’s prudent to regularly review compensation and benefits packages to remain attractive to current and potential employees. Consider offering unique perks like flexible work arrangements, wellness programs, or tuition reimbursement to enhance overall job satisfaction.

Although compensation and promotions are an integral part of every organization, it is often one of the hardest conversations for managers to have. This sensitive topic requires delicacy, transparency, and fairness — and, therefore, some practice. With Skillsoft CAISY^TM Conversation AI Simulator, an innovative generative AI-based tool, managers can practice these difficult conversations in a safe space. Try CAISY for yourself →

7. Demonstrate a positive social and environmental impact

Employees are increasingly seeking workplaces that reflect their personal values, which is why it’s no surprise that companies committed to social responsibility and sustainability are resonating more deeply with top talent. Clearly communicate the company’s mission and vision, and show employees how their work contributes to these broader goals—because when employees feel connected to a larger mission, their commitment to the organization deepens.

Sustainability training demonstrates a commitment to responsible business practices, and fosters a sense of purpose and responsibility among employees, leading to higher job satisfaction and retention rates. Explore our corporate sustainability training programs →

8. Promote health and wellness initiatives

Health and wellness programs play a crucial role in promoting employee well-being by addressing both physical and mental health needs. By offering initiatives such as fitness programs, mental health resources, and wellness challenges, organizations create an environment that prioritizes overall health. 

This holistic approach helps reduce burnout, enhance job satisfaction, and foster a more positive workplace culture, ultimately leading to improved employee retention and productivity. Check out our well-being courses →

9. Encourage work-life balance

Promote a healthy work-life balance by offering flexible work schedules and potentially remote work options. Support employees in taking time off when needed and discourage a culture of overwork. When employees feel their personal lives are respected, they are more likely to remain loyal to the organization. Understand how to strike a balance →

10. Empower and engage employees

Engaged employees are more likely to stay with an organization. Regularly seek feedback through surveys or one-on-one meetings, and take action based on their input. Creating an open dialogue helps employees feel valued and involved in decision-making processes. See how to give employees the space for greater input and contribution →

Implementing targeted employee retention strategies is not just about minimizing turnover; it’s about fostering a workplace environment where employees feel valued, engaged, and inspired to contribute to the organization’s success. 

Providing access to training, mentorship, and career advancement resources not only attracts talent but also cultivates a work environment where employees feel empowered and valued. 

Companies that make a concerted effort to prioritize development can effectively reduce turnover, enhance employee satisfaction, and ensure a committed workforce that is poised to meet the challenges of the future. Because, after all, investing in your people is, without a doubt, an investment in the future of your organization.

Start investing in your future with Skillsoft. Request a demo today →