Over 13 million workers quit their jobs in the first quarter of 2022, according to the US Bureau of Labor Statistics. That’s roughly 3 percent of the workforce resigning each month.
People today don’t hesitate to switch jobs for better opportunities. And with the job market leaning heavily in favor of candidates, this shift is here to stay.
There are more roles than skilled people to fill them, and every employer is chasing the same talent. In this environment, finding and retaining good people is becoming the biggest differentiator for business growth.
The reality? Hiring new talent is expensive. Retaining existing employees is the smarter, faster, and more cost-effective option. But retention isn’t just about handing out raises or throwing in free lunches. It’s about building real engagement and showing your people that they matter.
Let’s walk through the do’s and don’ts that make employee retention more intentional and effective.
From day one, make sure the employee feels set up for success. Introduce them to your company’s vision, values, and culture. But keep it authentic. No one likes to hear how amazing a company is if it doesn’t feel real.
A smooth onboarding process with relevant training and access to support makes a big difference in how long someone chooses to stay.
Pro tip: Pair new hires with experienced team members. A buddy system helps ease the transition and builds early engagement.
If someone joined at a lower salary during a tough phase, that may have been okay in the short term. But if they’re performing well, it’s important to recognize that with timely revisions.
Retention begins with fairness. No one sticks around in the long run when they feel underpaid.
Let go of rigid rules when it comes to how work gets done. Whether it’s hybrid work or remote-first roles, the flexibility you offer can be a deal breaker for employees.
Encourage planned time off. Respect personal priorities as long as work commitments are being met. It’s a win-win.
A fair reward and recognition program goes a long way. Formal or informal, feedback that acknowledges contribution builds loyalty.
Even a simple “well done” from a manager can create stickiness. People stay where they feel seen.
Don’t wait for the annual review. Feedback should be a continuous practice.
The more clarity employees have around what they’re doing well and what they can improve on, the more confident they feel about their growth within the company.
When new roles open up, consider internal talent first. Promote based on tenure and performance. It boosts morale and sends the message that growth is possible without jumping ship.
Hiring through employee referrals not only gets you better-fit candidates, it also makes the referrers feel involved and valued.
Referred hires also walk in with realistic expectations, which means they’re likely to stay longer.
Tip: Use a referral platform like RippleHire to automate tracking, boost engagement, and reward fairly.
Micromanagement kills creativity. Let go of outdated controls like login times and daily reporting unless truly necessary.
Train managers to trust, not control. Employees perform better when they feel trusted to manage their work.
Curiosity is a good sign. When someone asks about your vision, answer transparently. Don’t treat it as confrontation.
A question is often a sign of interest and investment, not disobedience.
Everyone wants to feel heard. If someone offers feedback, don’t rush to defend or dismiss.
Validating opinions—even when you disagree—builds emotional trust. People leave when they feel invisible.
Negative feedback isn’t personal. It’s a chance to understand what’s not working and fix it.
Ignore it, and you may be ignoring the early signs of a resignation letter.
New hires bring fresh energy, but your veterans bring context and stability.
Recognition shouldn’t only go to new faces. Keep celebrating your old hands who’ve consistently delivered.
Not everyone will raise concerns openly. It’s your job as a leader to check in regularly.
A dipstick survey, informal chat, or a simple one-on-one can reveal early signs of burnout, disengagement, or dissatisfaction.
Retaining employees today requires more than perks. It needs intention. It needs your leadership team to stop seeing retention as an HR function and start owning it as a company-wide priority.
Whether it’s a first-time manager or a tenured CXO, these do’s and don’ts apply across the board.
Bonus Tip: Use platforms like RippleHire to manage employee referrals and internal mobility. It centralizes your efforts, helps you tap into existing talent, and makes hiring and retaining people significantly easier.
1. Why is employee retention important?
Retention reduces hiring costs, increases productivity, and ensures business continuity. Retaining top talent also boosts team morale and customer satisfaction.
2. What are the most effective ways to retain employees?
Fair compensation, work-life balance, timely feedback, internal promotions, and recognition are key practices that improve retention.
3. How can feedback impact employee retention?
Consistent and constructive feedback helps employees feel guided, supported, and motivated, reducing the chances of disengagement or exit.
4. Can flexibility really improve retention?
Yes. Offering flexible work arrangements like remote work or flexible hours improves employee satisfaction and reduces turnover.
5. Why do employees leave even if the pay is good?
Pay is just one factor. Lack of recognition, rigid structures, poor management, or limited growth can all lead to attrition despite competitive pay.
6. Should managers handle retention too?
Absolutely. Managers play a direct role in day-to-day engagement and are often the biggest influence on an employee’s decision to stay or leave.