10 Employee Retention Strategies for the 2025 Job Market

Over 40 million US workers voluntarily left their jobs in 2024, costing employers nearly $1 trillion to replace them.

While this is down from the 45 million workers who voluntarily quit their jobs in 2023, it’s an increase of more than 30% in the quit rate from ten years ago.

Despite these figures, the US unemployment rate is around 4%, which is considered fairly good. However, these rates have steadily increased since 2022. As a result, your company should refocus your efforts on employee retention.

As we make our way through 2025 and start looking ahead to 2026, your company needs updated employee retention strategies to continue to grow and remain competitive. These 10 retention strategies will show you the way for 2025 and beyond.

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What are employee retention strategies?

An employee retention strategy is a specific plan implemented as part of employee retention programs. The goal is to find turnover pain points and create ways to address them that suit your company’s unique culture, industry, size, etc.

Employee retention strategies recognize that each employee is an investment of time and money. When companies hire and train employees, they dig into their profit margin. Having to re-hire those employees leads to deeper cuts.

The Work Institute’s yearly results show that other career opportunities are the number one reason people leave their jobs. Understanding this, as well as other challenges, is crucial when developing effective employee retention strategies.

Why you need retention strategies

According to Work Institute’s 2025 Retention Report, if every unemployed person in the US found a job, there would still be over 3 million available jobs. In other words, employees have more options than ever. So, employers must go beyond the bare minimum if they want to retain employees. 

Here are the top five reasons employees seek alternative employment:

1. Career: 18.9%
2. Health and Family: 12.4%
3. Work-Life Balance: 11.9%
4. Management Behavior: 9.7%
5. Total Rewards: 8.2%

Other factors including relocation, job characteristics, and environment are also among the top ten. These are the most important challenges that you and your leadership team need to pay attention to.

Employee turnover affects revenue as well. In fact, high turnover can lead to a host of problems, including:

• Increased recruitment costs — You’ll waste time and money on job advertising, writing job descriptions, interviewing, and training.
• Loss of organizational knowledge — You’ll lose top talent, valuable knowledge, and experience from the organization. 
• Productivity drain — You’ll have to invest more time into training new hires to boost performance. Lost productivity costs organizations $1.8 trillion each year. ‍
• Poor company culture — By implying lower employee satisfaction, high turnover can convince others that it's not a good place to work.

Why your employee turnover rates may be high 

High turnover rates (also known as churn rates) are a potential sign that current employees are dissatisfied with a company. Low engagement and low morale may come from both internal and external factors. For instance, you can improve company culture (internal factor), but there’s not much you can do about inflation (external factor).

Regardless, identifying these causes may help you address them. By taking action to mitigate both internal and external factors, you’ll increase your odds of retention.

Internal factors affecting churn

• Unfair compensation — Employees who feel underpaid for their work look for better prospects in other organizations.
• Burnout — What started as a meaningful job may feel overwhelming later. They may be asked to take on too much or asked to do tasks they’re not trained to do.
• Career opportunities — Your employees may feel there aren’t enough internal opportunities for them. This can include skill training, promotions, mentorship, or flexible work arrangements.
• Boredom — The job may have started as an exciting opportunity but feels less inspiring day by day. A lack of engagement can also diminish an employee's passion and enthusiasm — and it costs companies $550 billion annually.
• Conflict with coworkers — When employees don’t have mutual respect with managers or peers, it can adversely affect their productivity and make them leave.

External factors affecting churn

• Career change — Employees may feel that their jobs no longer align with their career goals or may want a career change. 
• Economic trends — Recessions can cause revenues, income, and GDP to decline, resulting in lower pay, frozen bonuses, etc. Inflation makes salaries worth less.
• Personal obligations — Family illness, a partner getting a job transfer, caregiving, or other personal life challenges may cause an employee to quit.‍
• Poor culture fit — An employee may feel that they do not sync with the company's mission statement, goals, and culture. They may stand at odds with the managers, trying to fit in an environment they cannot adjust to.

5 employee retention examples

Now that we’ve talked about factors that affect retention, let’s explore a few examples of how to address them. 

Every company is different and different employee retention program examples work better for some more than others. Determining what fits your unique company culture, staff size, industry, etc. will help you create strong retention strategies that make people want to stay at your company for the long haul. 

Here are a few turnover pain points you may be experiencing and employee retention programs examples to address them:

1. Poor new employee retention: Turnover in the first year accounts for 40% of all churn for a reason. If your company is having trouble keeping new hires, consider creating a more structured onboarding program to add to your retention strategies.
2. Low employee morale causing turnover: Morale can be affected by many different factors. Poor company communication, little or no recognition, work not feeling meaningful—these are just a few retention factors relating to low morale. Talk to your employees and managers to investigate which factors apply to your company.
3. Too much change too fast: Change is hard for a lot of people, especially at work. When organizational change isn’t approached properly, employees lose confidence in the company and leave. This is why proper change management is one retention strategy example to focus on if your company is growing and evolving quickly.
4. No advancement or development: The highest cause of turnover is a lack of career development opportunities. One retention strategy to combat this might include more skill training for current employees, giving them greater opportunities for promotions. 
5. Burnout and stress: If you’re hearing reports of burnout, investigate the cause. High workloads with little support, poor work-life balance, and micromanagement are all contributing factors to burnout. Flexible work arrangements, safe feedback channels, and improved benefits can help ease strains while providing you and your leadership team with valuable feedback to help you improve employee experience.

These are just part of a retention plan example to get you thinking on what your company and your employees need to reduce turnover.

10 retention strategies to keep your top employees

With signs that the job market is cooling, there are still more jobs than workers. The good news is that you have a workforce that is looking for stability and may be looking for a reason to stay. More than a third of unemployed workers have been out of work for more than 3.5 months.

So what can you do? We’ve compiled a list of 10 employee retention strategies that will help you keep more of your team — in 2025 and beyond.

1. Pay competitive rates 

Let’s start with the obvious. If you want to keep your best employees, you have to offer competitive compensation. 

It will come as no surprise that pay remains a top factor in employee churn, and other employers are more than happy to scoop up your top talent. Those who are willing to pay for top talent attract those people.

Of course, inflation is a big reason salaries are a top concern. The cost of living (identified through the Consumer Price Index) has gone up over the last year, so if your company hasn’t given a cost of living increase, your employees are making less now than they were before. 

If you’re not able to affect salaries directly, there are still things you can do, though.

Start including salary ranges in job descriptions. While this strategy may sound like more of a recruitment tool than a retention strategy, pay transparency shows existing employees that you’re paying them fairly.

Plus salary disclosure is just good practice. Eight states already require employers to share salary ranges for job openings, with 15 more considering similar laws.  

Already posting salaries in your job postings? Take a look at the range. It should be an accurate reflection of your budget for that specific role. If it’s too large it might be time for a to take a look at pay equity in your company.

2. Create career advancement opportunities 

Nearly every jobs-based report for 2025 agreed on one thing: workers will leave their jobs for better opportunities. It doesn’t matter if advancement comes in the form of a higher salary, a promotion, or a more appealing work-life balance, employees are craving it.

When employees see opportunities to grow internally, they are less likely to look externally. LinkedIn’s 2025 Workplace Learning Report revealed that companies who prioritize career development are significantly more confident in their ability to be profitable and attract and retain qualified talent. By focusing on learning and development activities, employers help employees gain skills for the jobs they do now and the work they will want to do in the future. This data coincides with the Work Institute’s findings, which tell us that the lack of career development opportunities is why many leave their jobs. In other words, if you want to attract top talent, you must be willing to invest in them. Challenged employees feel rewarded for the work that they do.

To increase job satisfaction and improve retention, companies need  to challenge employees through learning opportunities and upward mobility. This can include anything from mentorship events to one-on-one shadowings. For example, employers could implement a job shadowing program to test employees and find out more about the skills they need to do the job properly. With this retention strategy example, your company will see enhanced engagement, a better internal talent pipeline, and a sustainable group of skilled employees in leadership roles.

‍⚡Read more about how to structure a mentorship program

3. Create a people-first workplace

In a people-first company, an organization prioritizes the people that support the business, its growth, and its revenue. It’s important to note that the umbrella term “people” refers not just to employees, but also customers and the community at large. 

This retention strategy requires a shift in company perspective. Instead of asking, "How do we succeed?" a people-first company asks, "How can we support our people?" In this way, some employee retention examples could include more wellness programs, more general skills training, and clear opportunities for advancement.

And there’s evidence to show that now is the prime time to implement this change. Executives around the world want to focus on people. 82% of leaders told LinkedIn that HR strategies are crucial for success.

You can inspire your C-suite with one or two simple employee retention programs examples. First, look to the employees that impact the most people: managers. 

Quantum Workplace has a great video on how to empower your managers to be better leaders. Tips include creating an open dialogue with team members and recognizing employees in meaningful ways. Your retention plan should start with your managers, as those are employees who have proven themselves worthy of their experience level.

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4. Make meaningful connections at work 

Part of a people-first culture is the quality of relationships between those people and is a great retention strategy example. But you have to go beyond happy hours and birthday parties. For true success, cross-functional collaboration (aka teamwork) must be baked into your company culture. And that requires a solid foundation.

In fact, one study concluded that quality relationships are a cornerstone of successful collaboration. The stronger those connections are, the more likely those team members are to share their knowledge. It’s like an infinite loop of collaboration. 

Executives and HR departments can play an active role by fostering healthier connections between workers and team members. 

Consider adding collaborative activities like peer learning to your L&D program or working project sprints into your major projects. It will go a long way toward employee engagement and retention.

5. Recognize and appreciate hard work

In a recent Gallup workplace survey, the most memorable recognition comes from the manager (28%), CEO (24%), and the manager’s manager (12%). Gallup’s survey takes this a step further, encouraging employers to create a recognition-heavy environment, boosting morale through recognition at least once a week.

When organizations don’t acknowledge the vital contributions of employees, they can become discouraged, leading them to seek out other roles where they’re appreciated. Managers can increase the commitment and dedication of employees with timely recognition and appreciation of their hard work. 

This recognition doesn’t necessarily mean monetary rewards. In fact, your company can find and should find non-monetary incentives as a form of employee recognition. Everything from simple shout-outs to stretch assignments can motivate employees and keep them from jumping ship to the competition.

Employee spotlights are one specific way that managers can recognize employees. You can include them in a company newsletter, announce at an all-hands meeting, or post on the employee intranet or social media. By publicly acknowledging the great work of team members, those employees feel valued, motivated, and more devoted to the organization’s success.

6. Set up mentorship and training programs

Mentorship is an effective way to train new employees while also making tenured ones feel empowered to share their knowledge and skills with someone new.

Jennifer Petrela, a mentoring expert at Mentorship Quebec says more companies are using mentorship as a recruiting tactic because younger workers are aware of the power of mentorship programs.

A mentoring program is essential for new workers who want a leg up in their career. Formalizing your mentorship program will take the strain off your employees who choose to become mentors by giving them a framework and guidance for guiding their mentee.

For tenured employees looking to advance, consider upskilling and reskilling programs, refresher training, executive sponsorships, or other mentoring activities.

To encourage these mentorship programs, HR and L&D needs to work together with managers and executive leadership. Through this more collaborative approach, you and your team can demonstrate how mentorship and upskilling programs can contribute to the company’s strategic goals. Engage in open conversations, support your insights with data, create mentorship goals, and establish regular updates and feedback loops to encourage communication throughout the whole process.

In addition, a leadership development program is part of any good mentorship initiative. Focusing on improved communication skills, conflict resolution, and leadership skills are three examples of where mentors can provide guidance. You can even include mentorship events to set aside specific times for this kind of collaboration. Don’t start your mentorship program just to check a box; work to create a culture of peer learning and support where mentoring feels natural.

7. Encourage a healthy work-life balance

Overworked employees reach a point where they struggle to perform and be productive. When their bodies and minds have worn out, they can fall prey to stress and subsequent sicknesses. They may quit because the work has become overly demanding and they can’t find the time and energy they need in their personal lives. 

Nearly half of Gen Zs and Millennials say they’re burned out due to pressures at work, according to a report from Deloitte. Even worse, about half of Gen Zs and Millennials say that their employer doesn’t care about their mental health. Some (about 25%) believe that employers will discriminate against them for having mental health issues, which work pressures can exacerbate. A healthy work-life balance is vital for good mental health and should be a core focus in your retention strategy.

Benefits like flexible work schedules, wellness stipends, and high potential leadership programs can go a long way in keeping your employees productive and feeling balanced. In fact, SHRM found in a survey that the number one reason people sought flexible work was to achieve work-life balance. 

💡Read 10 ways leaders can promote workplace wellbeing

8. Offer flexible work arrangements 

Most companies looking to offer flexibility to their employees opt for hybrid workplaces, and Deloitte’s research shows that a good chunk of workers agree. But flexible work doesn’t always apply to the location where you’re working. 

According to a June 2022 Gallup survey, half of US workers want some form of flexibility in their workplace. This applies even in cases where remote work isn’t an option. So if you can’t offer remote work, consider retention strategies like flexible working hours, coworking spaces (and quiet spaces), or shortened work weeks.

9. Provide personalized employee support

Employees want career development and personalized support. A few of the employee retention strategies we’ve already covered prove this. Your team as well as leadership teams can do more to make sure everyone feels appreciated and supported in your company. At the same time, company heads need to show compassion and understanding to employees who may be struggling. Yes, productivity matters, but not at the cost of employee morale. Demoralized employees aren’t going to work as hard and may jump ship to another company.

Individualized counselling sessions can ensure every employee feels uplifted. This can be part of your mentoring program or regular 1:1 meetings. The point is to give employees an opportunity to offer feedback and receive guidance on their work performance, path, and long term career goals.

10. Learn from the past 

Many companies adopted exit interviews to understand why employees resign. This helps uncover the roots of any turnover issues, and more importantly, cut off high turnover before it starts.

Exit interviews offer your team loads of data that can help you find the leading causes for resignation, but only if you do something with it. Ideally, you’re using that information to improve the company's workflow, benefits, compensation structure, and work-life balance. 

You might choose to compile a quarterly or annual report that highlights any insights or trends. As with payscales, transparency is key. So while you write the report to present to your higher-ups, it’s a great idea to publish it internally as well. This will go a long way in making employees feel heard. 

But the biggest reason is these insights will help you craft more effective retention strategies in the future.

Include mentorship in your employee retention strategies

No matter how you slice it, turnover is a drain on company resources. A mentoring program pays dividends faster and longer than any of the other retention strategies we’ve listed here. Why? Because they help to solve all the top reasons for high churn and help you retain your top talent.

Mentorships not only give your employees the guidance they need to succeed, they also have a positive impact on salaries, promotions, employee engagement, and company culture. 

Mentorship and sponsorship programs also give your managers and senior team members a reason to stay. Serving as an advisor to a junior employee grows leadership skills and creates a culture of shared learning. 

‍To find out how mentorship fuels your retention strategy across the board, book a demo of Together’s mentoring software.‍