Ask any business owner what their biggest headache is, and you’ll likely hear something about employee retention. Hiring is difficult, and keeping great employees can be even harder. When someone quits unexpectedly, especially one of your top performers, it affects more than morale – it creates a real financial impact.
Turnover is expensive. According to Gallup, the cost of replacing an individual employee can range from one-half to two times the employee’s annual salary. That means losing an employee who is paid $ 70,000 per year might quietly drain your company of $35,000 to $140,000. That cost includes recruiting, onboarding, lost productivity, and training. When turnover becomes a pattern, those costs add up quickly.
With this in mind, how can companies stop the financial bleeding? A good starting point is to implement strong Employee Retention Strategies, and that begins with understanding what’s really causing employees to leave.
Key Takeaways:
Managers often assume employees leave for more money. In reality, that is only one part of the story. A 2021 Pew Research study found that while compensation matters, low job satisfaction, limited advancement opportunities, and feeling disrespected also play a major role.
Inside the workplace, this might look like:
Most people are not just chasing bigger paychecks. They are looking for meaning, respect, and a sense that their work matters.
Toxic culture doesn’t always announce itself. Sometimes, it’s subtle patterns that quietly wear people down. Perhaps managers only reach out when something goes wrong, or celebrate productivity while ignoring the signs of burnout. Often employees stay silent, afraid that speaking up could backfire. These are the less obvious signs of a dysfunctional environment, but they’re no less damaging than more overt issues.
There’s a reason the phrase, “people don’t leave jobs, they leave managers” is so common in HR circles. Weaker leaders see their role as delegation, while stronger leaders work to build trust, create connection, and foster an environment where people feel safe to contribute, grow, and be heard.
There is no single policy that guarantees employee retention. However, several proven employee retention strategies can increase trust, engagement, and long-term commitment.
When employees feel underpaid compared to others in their role or industry, frustration grows. Employers should use tools like PayScale, Salary.com and Glassdoor to stay informed about market rates, and use Bureau of Labor Statistics for cost of living (COL) information to guide minimum pay increases. Recently, the COL went up more than 8% in one metropolitan area and many employers still gave out 3% raises that year. Effectively, their employees lost 5% of the value of their compensation because the raise wasn’t aligned with the COL increase. A raise that decreases the value of an employee’s compensation is demoralizing and will cause frustration.
Benefits should also be tailored to individual needs.
Offering options based on generational and personal preferences shows that the company pays attention to what employees value.
Transparency around compensation builds trust.
Too many high performers are promoted without the tools or the training to lead effectively. This creates unnecessary stress and turnover.
Leadership requires real skills: coaching, communication, and decision-making. Companies should invest in professional development for managers and provide consistent feedback and support.
Stay interviews are a simple, effective way to check in with current employees. They help uncover what’s working and what needs to change before people start looking elsewhere.
Sample stay interview questions include:
Stay interviews build trust and help leaders stay ahead of potential problems.
According to LinkedIn’s Workplace Learning Report, 94% of employees would stay longer if their company invested in their careers.
Growth does not always mean promotions. It can include mentorship, skill-building, cross-training, or exploring new internal roles. Most people want to keep learning, even if they do not want to manage others.
Employee engagement surveys, when used regularly and followed up with action, give employees a voice and direct employers to action steps needed to increase retention.
Surveys should always be done anonymously to elicit honest answers. For best results, surveys should be done annually, around the same time each year, so results can be compared year over year.
Brief “pulse surveys” on communication, workload, or recognition can reveal what people are experiencing in real time rather than waiting for the more detailed annual survey. Feedback is only useful if the company acts on it.
If your team is constantly turning over, it’s not just about why people are leaving; it’s about why staying doesn’t feel worth it. That usually points to deeper issues: unclear expectations, poor training, limited support, or a culture where employees don’t feel heard.
When people feel disconnected, they leave. When they feel supported, recognized, and given room to grow, they stick around and do their best work.
At Next Level Strategies, we work with companies to figure out what’s really behind high turnover and how to fix it. Whether it’s improving onboarding, creating smarter training programs, strengthening leadership, or building retention strategies that actually work, we help businesses create environments people want to stay in.
If you’re tired of losing good employees and want to build a workplace that attracts and retains great talent, we’re here to help. Reach out using the form below, or give us a call at 415-876-NEXT to start making changes that last.
Reach out to our team of HR experts today!
Lack of growth opportunities, poor management, feeling undervalued, and burnout are some of the most common reasons employees choose to leave.
By offering clear communication, strong leadership, career development, and a workplace culture that supports and recognizes employees.
A drop in engagement, missed deadlines, increased absences, or withdrawal from team interactions can all signal that someone is thinking about leaving.
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