66 Employee Retention Strategies Backed By Hard Data
Are you looking for employee retention strategies that are based on real data and actually work? Look no further.
Employee retention is important because turnover is expensive.
Consider these points:
The average cost to replace an employee is half to 200% of the employee’s annual salary.
According to Gallup, 42% of employee turnover is avoidable.
Data from iMercer shows that around 13% of all US employee’s turned over between 2024-2025.
So as HR people, we live in a world where employees quit regularly and losing an employee is really expensive, but at the same time is largely preventable.
This is why employee retention strategies are very important for every HR team to learn.
HR at the Heart of Retention
By fostering engagement, growth, and support, HR teams play a pivotal role in keeping top talent invested and committed.
Why Listen to Me About Employee Retention?
My name is Jessica D. Winder. Ive been a Vice President of HR at various companies and also run my own HR and Career Coaching consultancy. I have over 15 years of experience in the trenches.
I have decreased employee turnover by up to 25% at various orgaizations.
Want to cut through the noise and go straight to figuring out which data backed strategies are most impactful for your organization? I can easily figure that out for you. Get in touch with me for a free consultation today.
All 66 Employee Retention Strategies
Here is a mega list of employee retention strategies that are proven to work.
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Schedule Your Free ConsultationCompensation, Benefits & Perks Strategies
Compensation, benefits, and perks matter to employees. This is one category of employee retention strategies. Let's review some of the individual tactics that can be used from this category.
1. Offer Competitive Salaries
Pay has a big impact on loyalty and effort. One study from Mercer found that when workers feel their pay is fair, they’re 85% more engaged and 62% more committed to their job.
Check what others in your field are paying. Then adjust your rates to match. It’s a smart, simple way to keep your best people.
2. Conduct Internal Pay Equity Audits
Pay transparency matters. The same research from Mercer quoted above shows that workers who feel they can achieve their career goals in their current workplace are twice as committed to the job.
To support this, review pay across roles and groups regularly. Fix gaps that may cause frustration or doubt. Showing fairness in pay helps people see a future with your company.
3. Provide Performance-Based Bonuses
People love to be incentivized by performance-based bonuses. In fact, a study published in the National Library of Medicine showed that when a company offered strong benefits and incentives:
Turnover was reduced by 26%
Employee Retention increased by 14%
4. Enhance Health Insurance Coverage
A key way to increase employee retention is to make sure their healthcare needs are being met.
A study in JSTOR from The Quarterly Journal of Economics found that workers who receive health insurance from their employer are 25% less likely to leave on their own, with turnover dropping from 16% a year to 12%.
Another report from the Bureau of Labor Statistics found that employee turnover reacts more to added benefits than to higher pay. When companies expand health or other coverage, turnover falls more than it does with higher wages.
5. Offer Retirement Savings Plans
Helping staff save for retirement is a proven way to keep more of them. Gusto reports that employees who are offered retirement benefits are 40% less likely to quit in their first year. Even simple options, like matching savings or sharing profits, can have a powerful effect.
6. Add Nontraditional Benefits
Unique perks can make a big difference in keeping staff. In a whitepaper by Maven, Patagonia is cited as an example that offers on-site childcare and saw a 100% retention rate for new mothers after implementing that policy.
A tip here is to get to know your staff to understand what their unique pain points are. They might have a completely different problem or need than you think. If you can make their life measurably better, they will see it as another reason to stay.
7. Subsidize Commuting Costs or Provide Transportation Allowances
Daily travel costs can add up and push workers to leave. Data from commuter benefits provider SHARE Mobility indicates that helping with employee commuting costs can increase employee retention. Companies that used SHARE Mobility’s commuter benefit program saw a 62% increase in employee retention after using the service for 5 months.
Covering part of a train ticket, offering ride credits, or adding a transit stipend can make daily travel less of a burden and employees more likely to stay.
8. Provide Home Office Stipends for Remote/Hybrid Workers
Working from home can be tough without the right setup. According to Benepass, home office stipends raise both satisfaction and productivity, which are both drivers of employee retention. This tactic is key to keeping work-from-home employees long term.
9. Offer Wellness Programs and Fitness Support
This study from Science Direct found that absenteeism is a proven predictor of turnover in a company. That's important to note because this other study from professors at Harvard University found that wellness programs reduce missed work. They also lowered medical costs.
According to the Mayo Clinic, people feel better about themselves when they engage in physical activity, and it can make us feel happy and lower our anxiety, too.
Being fit is also a goal that the majority of people have for themselves. Help people hit their goals, and they will be less likely to be unhappy and leave.
10. Give Employee Discounts or Fringe Benefits
An employee who gets a free financial planning service through work may use it to grow their wealth. Another might take their family to a show or sports game with free tickets. These moments build a positive tie between the worker and the company.
This study in the International Journal of Agriculture Extension and Social Development support the claim that fringe benefits are linked to retention rates. When workers feel good about their fringe benefits, they stay longer. These studies also show employees view these perks as motivators that makes them want to engage and commit more to the company.
Career Growth & Professional Development Strategies
Employees are often ambitious and have goals they want to meet. If you help them meet their goals, they may very well be inclined to stay longer and perform better.
11. Create Clear Career Paths With Defined Milestones for Advancement
Most employees feel better about their prospects for growth if they see actual prospects for growth that apply to them. If there’s a clear ladder: defined milestones, set timelines, etc, they’re far more likely to stick around.
Research backs this up. Data from LinkedIn shows that visible advancement options makes employees about 20% more likely to stay for two years than those without a path.
12. Promote From Within Before Hiring Externally
Employees greatly appreciate organizations that put an emphasis on promoting from within. This practice can really help workers understand that if they stay and perform well, theres opportunity for growth.
The reality is though, according to this study from the Wharton School at UPenn, external hires just arent as committed. In the study results, external hires had a 61% hirer chance of involuntary exit and a 21% higher cance of voluntary exit.
13. Invest in Upskilling and Training
People love learning and improving their abilities. Offering training, whether it’s in tools, leadership, or other roles, shows you care about their growth.
Research from Gallup shows the impact. Staff who feel strongly supported in learning new skills are 47% less likely to be looking for a new job..
14. Offer Tuition Reimbursement for Relevant Degrees or Certifications
People love to upgrade themselves and ambitiously proceed toward their goals. Research from the Lumina Foundation shows an 8% increase in retention rates for employees that took part in an education reimbursement program.
15. Provide Mentorship Programs for Both New and Existing Employees
Creating a community of mentorship at your company can really help retain employees. According to research from the Wharton School at Upenn, this is a fact. In their study, employees who participated in mentoring programs had retention rates of:
72% for Mentees
69% for Mentors
As opposed to 49% for employees who did not participate.
16. Encourage Attendance at Conferences and Industry Events
Conferences do more than share knowledge. They help employees grow skills, meet peers, and see their role in a bigger picture.
According to Indeed, these experiences leave some workers more satisfied with their work overall.
17. Develop Internal Mobility Programs to Move Employees Into New Roles
People love trying new things and gaining new experiences, this includes trying out more jobs. To be clear, im not saying you need to promote people for them to be happy, often times people are also very interested in new experiences even without promotion.
According to LinkedIn, workers are more likely to stay at a company when they’ve performed more roles at the organization. Their 2023 Workplace Learning report says if an employee has made an internal move by the end of their second year at a company, they have a 75% chance of staying.
18. Create Skill-Based Training Aligned with Business Goals
When training links to business needs, people learn faster and stick longer. Roche tested this with a skills-based program and saw a big shift. Staff who once needed a year and a half to get up to speed did it in only 90 days. That change not only cut turnover but also raised customer satisfaction.
19. Support Lateral Moves for Growth
Some employees want to move fast, crave new enviornments and believe a side step can help them keep learning. A lateral move, into a new team or function, can provide that freshness in someone’s life without them leaving the company.
Data shows 62% of people who make lateral moves are more likely to remain with their employer over time.
20. Provide Stretch Assignments
In this Egon Zehnder survey, executives said stretch assignments in their careers helped them “unleash” their potential. Stretch assignments are widely viewed as opportunities for professional development.
This is significant as other data from the Execu|Search Group indicates 86% of professionals would change jobs if the new job had more professional development opportunities.
Perhaps one of the main patterns we are seeing, is that if you help employees hit their goals, they will be more willing to help you hit yours.
Leadership & Management Practice Strategies
Fostering good relationships between employees with management and leadership can make their environment a lot better.
21. Train Managers in Leadership Skills
Managers set the tone for the workplace. Teaching skills like empathy, coaching, and clear communication makes a big difference. Research from South Korean Universities shows that coaching-style leadership has a strong effect on whether employees want to stay instead of leaving.
22. Set Clear Performance Expectations
Stress rises when employees don’t know what “good” looks like. This study from KMAN-CPN found that role clarity boosts mental well-being and lowers turnover, even when employees are under high pressure.
23. Hold Regular 1-on-1 Meetings
One-on-one talks build trust. Adobe used a system of frequent check-ins instead of reviews and cut voluntary turnover by over 30%.
24. Seek and Act on Feedback
Feedback needs follow-up. Research from Frontiers in Psychology shows that acting on what employees share in surveys and interviews is linked to lower turnover and stronger engagement.
25. Practice Transparent Communication
Transparency is more than a buzzword. It’s about saying what you mean and following through. One study from the IJCRT showed that clear and open communication is linked to greater job satisfaction, and when employees are more satisfied, they are more likely to stay.
26. Foster Trust by Following Through on Commitments
Trust is built when leaders keep their word. Broken promises make people doubt the company. Research from Great Place to Work showed that workplaces with a strong trust culture see turnover rates about 50% lower than their competitors.
27. Encourage Open-Door Policies
Leaders who make themselves accessible earn more trust. Walden University researchers recommend leaders use open-door policies, where employees can talk directly with higher-ups. These kinds of policies can contribute to keeping staff.
28. Address Poor Management Behavior Quickly
Bad bosses drive people out. Data from CMI and YouGov shows that half of employees who are unhappy with their supervisors quit within a year. Coaching or replacing toxic managers must happen fast.
29. Equip Leaders to Support DEI
Employees notice whether leaders back DEI. Research on UK unicorns showed that low DEI scores made companies almost twice as likely to face higher turnover. Stronger inclusion efforts meant better retention.
Workplace Culture & Engagement Strategies
People tend to thrive in positive environments, they also like to stay in positive working environments longer.
30. Foster a Positive and Respectful Culture
Toxic behavior drives people away. A SHRM report found that workers in healthy, positive cultures are almost four times more likely to stay with their employer.
31. Encourage Friendships at Work
Team bonds matter for employee retention. A survey from Express Employment Professionals shows nearly 9 in 10 employees believe friendships at work make them more likely to stay. Almost half also say those friendships improve long-term loyalty.
32. Promote DEI with Measurable Goals
It’s not enough to talk about DEI. Employees expect to see clear action and progress. That's what researchers from the International Journal of Innovations & Scientific Research found. They say that companies that set measurable DEI goals and fold them into retention plans tend to keep more staff for the long term.
33. Recognize Achievements Regularly
Recognition is a strong retention tool. Gallup’s research shows that workers who felt recognized were 45% less likely to leave after two years on the job.
34. Personalize Recognition to Match Employee Preferences
Recognition isn’t one-size-fits-all. The same Gallup study mentioned above found that high-quality, tailored recognition cut two-year turnover by 45%. By year 2, they showed even stronger results; employees who got recognition that hit four key areas were 65% less likely to be looking for another job.
35. Celebrate Milestones
Small gestures, like celebrating work or personal milestones, can go a long way. A study from Gallup and Workhuman shows these acknowledgments improve employees’ long-term intent to stay with their employer.
36. Support Employee Resource Groups (ERGs)
ERGs build stronger cultures. Research from McKinsey shows that companies with active, effective ERGs see big gains in inclusion that translate to better retention.
37. Encourage Collaboration Over Rivalry
Healthy teamwork beats unhealthy competition. A study from the University of Antwerp of 209 academic staff found that collaborative teams boosted commitment and lowered turnover intent.
38. Connect Work to the Company Mission
People want purpose. Gallup found that when employees see a link between their work and the company's mission, turnover drops 32% and productivity rises 15%.
39. Honor Employee Input
Ideas matter. Research in the Ivey Business Journal shows that workplaces that act on employee suggestions see higher morale and stronger retention.
Work-Life Balance & Flexibility
Many people crave freedom. The best part is you can give it to them without a hit on performance or lots of costs to your organization.
40. Offer Remote or Hybrid Work Options Where Possible
Remote and hybrid setups give workers flexibility without cutting results. Research from Stanford found they keep output and promotion rates intact while boosting how long employees stay.
41. Provide Flexible Hours or Compressed Workweeks
Flexibility helps people stay according to the International Journal of Advances in Business and Management Research. Their review of workplace data shows that when staff have flexible hours, turnover drops. They’re also more satisfied and more committed to their jobs.
42. Set Boundaries on After-Hours Communication
Always being “on call” is draining. Research published in Nature.com found that after-hours demands increase stress levels and lead to burnout.
43. Encourage Use of Paid Time Off Without Guilt
Time off matters. Being able to use paid time off without guilt matters even more. Research from professors at Appalachian State University links paid leave to stronger hiring and retention when workers feel free to take it.
44. Monitor Workloads to Prevent Burnout
When workloads get too heavy, burnout follows. This study from university professors in the Middle East shows burnout is one of the strongest signs an employee is about to quit. That makes it vital for managers to watch staffing levels and spread tasks in a fair way.
45. Support Sabbaticals for Long-Tenured Employees
Offering sabbaticals is linked to both employee well-being and retention. Survey data showed 80% of younger managers said sabaticals mattered compared to 72% of older managers. The top reasons included mental health benefits, building a more flexible workplace, and keeping talent longer.
46. Evaluate Performance Based on Results, Not Hours Logged
Focusing on output instead of hours has proven benefits. A study from University of Minnesota researchers found that it lowers turnover and makes workers less likely to plan an exit.
Onboarding, Integration & Retention from Day 1
How you receive someone into your company and how you make them feel long term is very important.
47. Implement Long-Term Structured Onboarding
A one-week welcome isn’t enough. SHRM’s evidence-based onboarding guidance recommends structured onboarding with regular check-ins for 12 months, which helps new hires feel supported.
48. Start Pre-Boarding with Resources Before Day 1
The first day shouldn’t be spent on forms. Research from Talentwise links the pre-boarding steps of handling paperwork and benefits to before Day 1, to better early performance and stronger retention.
49. Match Job Descriptions to Actual Roles
This one should be obvious, but turnover often comes from mismatched expectations. Research from the Journal of Management shows that when a job matches what employees were told to expect, they are less likely to leave.
50. Assign Mentors to New Hires
New hires who have mentors tend to stay longer. In the Mentorship ReSPeCT Study, most participants who were new hires credited mentorship with boosting their intent to stay.
51. Integrate Cultural Orientation into Onboarding
Company culture and making people feel like they're included are really important. A study from Cornell University shows that onboarding, which covers values and identity, not only duties, improves six-month retention and lowers turnover.
52. Measure Early Turnover
Track early exits on purpose. A federal oversight report names the 1-year and 3-year new-hire attrition rates as key indicators. Use those two numbers to spot gaps in onboarding and fix them to boost retention.
Feedback, Recognition & Continuous Improvement
If youre always improving the work environment and listening to your employees, people notice.
53. Use Pulse Surveys to Get Frequent, Focused Employee Feedback
Pulse surveys are a fast way to spot problems. According to LinkedIn, when scores sink two times in a row, attrition jumps by about 50%. But when scores start climbing, turnover drops close to 30%.
54. Conduct Exit Interviews and Analyze Patterns in Departures
According to a study from the International Journal of Innovative Technology and Exploring Engineering, exit interviews give insight into why people leave. Their research shows that formal interviews help HR uncover root causes, making it easier to shape changes that improve retention.
55. Hold Focus Groups to Explore Survey Findings in Detail
Surveys show trends, but focus groups dig deeper. A retention study from Deloitte found that they validated survey results and pointed to the drivers of why people stay or go.
56. Track and Share Retention Metrics
Retention data should be shared. A study from IZA Institute of Labor Economics showed that when managers got tailored reports on turnover, retention, and costs, nurse retention improved by 0.78 percentage points.
57. Recognize Innovation and New Ideas with Awards or Bonuses
Rewarding new ideas pays off. Deloitte’s research shows that firms recognizing contributions have turnover about 33% lower than those that don’t.
58. Regularly Measure eNPS (Employee Net Promoter Score)
eNPS helps predict employee loyalty to a company. According to Bain & Company, the simple “would you recommend us” question is highly linked to whether employees stay or leave.
Organizational Support & Wellbeing
Overall well being is important, if help employees have less to worry about, theyll not only stay but no a better job with their work tasks.
59. Provide Mental Health Support
Strong mental health programs help both staff and employers. A study led by a Johns Hopkins researcher shows that when companies provide counseling, meditation apps, or other resources, workers are happier, more engaged, and less likely to leave. Healthcare costs also go down.
60. Offer Financial Wellness Programs
Consider these points from Morgan Stanley:
58% of employees view financial matters as their biggest stress source
78% of them say that stress distracts them while working
40% of job turnover is due to stress
So, if you help employees lower financially related stress, they may be less likely to leave.
61. Encourage Physical Wellbeing - Fitness Challenges, Ergonomic Support
According to a study by Towers Watson and the National Business Group on Health, health programs are linked to retention. Companies that ran effective wellness efforts had 9% attrition. Those with weak programs had 15%.
62. Ensure Employees Feel Safe Speaking Up
When employees trust that they can speak without backlash, they stay. Research from the Boston Consulting Group indicates that leaders who build psychological safety reduce attrition risk to less than 3%.
63. Address Toxic Employees Quickly to Protect Team Morale
Toxic coworkers push good staff out. Imagine just trying to do your job, but you're being hindered by someone disrespectful or exhibiting other bad behavior. Unsurprisingly, people don't stand for it. A report from Cornerstone found that employees are 54% more likely to quit when forced to work with toxic peers.
64. Maintain Adequate Staffing Levels to Avoid Chronic Overwork
Overwork drives exits. Research published in the JAMA Network found that hospitals discovered that high nurse-to-patient ratios caused burnout, higher death rates, and more nurses leaving.
65. Demonstrate Stability and Job Security
Job insecurity drives people out. Research from Europe shows employees who feel insecure about their future are far more likely to quit within two years.
66. Align Technology with Culture
Teams without the right tools lose people. Research from the University of North Texas shows attrition is higher when staff lack proper systems, but good tech support helps them stay.
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The strategies I shared in this post are all data backed and have worked to retain employees at certain points. That said, every organization is different. Companies function differently and have different peciliarities. For this reason, its important to identify which strategies will have the highest ROI for your HR department’s employee retention program.
If you’d like help from a professional with a proven track record of accomplishing this, please get in touch today for a free consultation.
