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Increasing Employee Retention Strategies and Keeping Employees Happy

Junun Saleh

It is no secret that businesses need talented employees to succeed.

However, keeping those employees happy and engaged can be a challenge.

We will discuss some tips for increasing employee retention and keeping your team members satisfied!

Let’s dive in!

What is employee retention, and why is it important

“1 in 5 new hires are likely to leave within three months” Alice Kemper, Twitter @bestsalestips.

Employee retention is the term used to describe an employer’s actions to prevent their employees from leaving. Why is employee retention essential? The most important is that it can be expensive and time-consuming to hire and train new employees.

The cost of losing employees

The cost of losing employees can be high. Businesses have to spend time and money recruiting and training new employees, but they also forfeit the productivity of the employees who left.

In addition, if the employees who left were in key positions, it can be challenging to replace them, and the business may have to reduce its operations temporarily.

Time-consuming to hire the replacement

Finding and hiring a replacement can be time-consuming when a business loses an employee. The company has to advertise the position, screen resumes, conduct interviews, and test applicants.

Hiring a new employee can take several weeks or even months, and it’s not always possible to find a qualified applicant who is also a good fit for the business.

This is why it’s much more beneficial to retain your current employees.

Why are employees leaving?

No professional development

If you want to increase employee retention, it’s essential to know why your employees leave. This will help you identify the areas where you need to make changes.

Once you know the reasons your employees are leaving, you can take steps to address them.

There are many reasons why employees leave their jobs, but some of the most common ones are:

Dissatisfaction with the work or the company

There are many reasons employees may be dissatisfied with their work or company. Some of the most common reasons are:

  • Dissatisfaction with the work itself. The work feels too difficult, boring, or repetitive.
  • Dissatisfaction with the company. The company is not doing well, there is no room for advancement, or the company does not care about its employees.
  • Dissatisfaction with the salary or benefits. The salary is too low, the benefits are not good enough, there is no opportunity for a salary increase.
  • Dissatisfaction with the work/life balance. The job requires too much work, there is not enough time for family or personal life, the company does not provide enough paid vacation days.
  • Dissatisfaction with the company’s culture. The company is too strict, there is no room for creativity, the company is not inclusive or diverse enough.

You can make the company a better place to work by improving the culture, providing more opportunities for advancement, and increasing salary and benefits.

Lack of opportunity for growth or advancement

retain employees

People leave their jobs because they feel they don’t have a chance to grow in their careers.

The company does not provide enough training or the job does not offer opportunities for learning new skills.

Poor working conditions

Poor working conditions can include many things, such as a lack of job security, difficult or dangerous work, long hours, low salary, and poor benefits.

These factors can make it difficult for employees to do their best work and cause high turnover rates.

Lack of recognition or appreciation

Many employees feel that they are not appreciated enough. Some people might think that their contributions are not valued.

High turnover rates are the norm when employees don’t feel like their work is appreciated. This can lead to apathy and low morale, which leads them to seek employment elsewhere and quit!

If you want to increase employee retention, it’s essential to show your employees that you appreciate their work. Companies can do this by giving them more responsibility, praising their work publicly, and giving bonuses or raises.

Poor communication

Poor communication can be a significant problem in any workplace. The company does not keep employees informed about what is going on, decisions are made without consulting employees, or employees are not given a chance to voice their opinions.

This can lead to misunderstandings, frustration, and resentment. If you want to increase employee retention, it’s essential to improve workplace communication.

Companies can hold regular meetings, send out updates, and provide a forum for employees to share their ideas.

Unfair treatment

Employees leave their jobs because they are being treated unfairly. This may include feeling that they are being discriminated against, not being given the same opportunities as others, or being held to different standards.

This is a major problem. Morale is a huge factor in whether or not people want to continue working for you. If your employees feel mistreated, they may look elsewhere. It’s essential to treat all of your employees fairly. This includes giving them equal opportunities, providing the same benefits, and holding them to the same standards.

Lack of support from management

employee engagement

When employees don’t feel like their needs are being met, they’re more likely to look for jobs elsewhere.

Management not helping employees solve problems, not providing enough guidance, not giving employees a chance to express their opinions – all of this will quickly make employees resentful towards management,

Unhappiness with salary or benefits

It’s a fact that many employees are leaving their jobs due to being unhappy with the salary or benefits.

Thousands of employees feel they are not being paid enough, not being given enough vacation time, or that their health insurance is not good enough.

The benefits of increasing employee retention

employee retention rate

Employee retention is a critical part of any business. High employee turnover can be costly and disruptive. There are numerous benefits when you succeed to improve employee retention:

1. Reduced Costs: Replacing an employee can be expensive. Training new employees costs time and money. The disruption caused by turnover can also lead to decreased productivity and increased costs.

2. Increased Productivity: When employees are happy and comfortable in their work environment, they are more productive. 

3. Reduced Stress: High turnover can be stressful for employees. When employees know that they’re valued and appreciated, it reduces stress, increasing job satisfaction.

4. Good Attitude: When employees feel appreciated and valued, they have a great attitude. Bad attitude can lead to decreased productivity and increased turnover.

5. Improved Company Culture: A positive company culture attracts new employees and encourages current employees to stay. Negative company culture can drive away employees.

6. Reduced Turnover: The more employees you can retain, the less turnover you will have. This can save your company a lot of money and headaches in the long run.

Methods for increasing employee retention

employee development

There are various ways to keep your employees happy and increase employee retention. 

1. Offer competitive compensation and benefits: Compensation and benefits are competitive enough to attract and retain top talent. 

2. Promote employee growth and development: One of the best ways to keep employees happy and engaged is to promote employee growth and development. Provide opportunities for employees to learn new skills, take on new challenges, and advance their careers.

3. Create a positive work environment: Another essential way to keep employees happy and engaged is to create a positive environment. This includes having a friendly and supportive team, providing clear expectations and direction, and offering regular feedback.

4. Show appreciation and recognition: One of the best ways to show employees that you appreciate them is to be thankful and show recognition for their efforts. Thank employees for their hard work, recognize them for their achievements, and offer bonuses and rewards.

5. Offer flexible work arrangements: Flexible work arrangements can help employees balance their work and personal lives. 

6. Provide training and development opportunities: These can help employees improve their skills and knowledge. Support them by providing access to conferences, workshops, courses, and industry-related books and articles.

How to keep employees happy? 

health benefits

One way is to ensure that they have a good work/life balance.

It’s essential to give your team the flexibility to work comfortably and work from home for a couple of days per week.

Finally, it is crucial to create a positive work environment where employees feel part of a team. 

If you want your employees to feel valued and appreciated, they must know there are no secrets between management, and they can come to you with any issues. How do you make this happen? Organize social events or have an open door policy so people can come to talk with any concerns without fear!

How to retain top talent

The top talent in an organization is the most skilled and productive employees. These employees are essential to the success of a business, and it is crucial to do everything possible to retain them.

There are a few things that businesses can do to retain top talent:

  • Make sure they have a good work/life balance.
  • Provide opportunities for learning and growth.
  • Give regular feedback.
  • Create a positive work environment.

Let them have some fun!

valued workers

When employees have enough time to relax and enjoy themselves outside of work, they focus  better become more engaged when they are on the job.

It is essential to provide employees with the opportunity for a healthy work-life balance because it will make them happier and less likely to burn out from stress. According to a study, work-life balance has impacted 4.4% of employee retention among the millennial generation (age 21-25).

Therefore, businesses should encourage their employees to take some time for themselves outside of work to promote a healthy work-life balance.

For instance, offering flexible scheduling, providing more paid vacation days, or giving employees access to on-site amenities like gyms or childcare. 

Employee retention strategies for job satisfaction

Companies often focus on financial incentives like higher salaries or bonuses for employee retention.

However, research suggests that job satisfaction is a more important predictor of whether employees will stick around.

Therefore, companies that want to reduce turnover should focus on strategies that improve employee satisfaction. One way to do this is to provide more opportunities for career growth. 

Additionally, fostering a positive work environment can also boost employee satisfaction. This means creating a culture where employees feel respected and that their voices matter. Businesses should have open communication where everyone feels like they can share their opinion without fear of retaliation. 

By focusing on employee satisfaction, companies can make employee retention efforts more successful and ultimately reduce turnover.

Show them that you care

Engaged employees are highly productive and contribute to positive company culture. There are many ways to show your employees that you care.

Start by getting to know them personally and showing an interest in their lives outside of work. Make it a point to give them regular feedback, both positive and constructive.

Show appreciation for a job well done, and be quick to lend a helping hand when needed. 

Handwritten notes are always more personal than typed ones. By creating a supportive environment, you’ll reap the benefits of having highly engaged employees.

Celebrate employee successes

company's success

Employee morale is essential to a successful business. When employees feel appreciated, they are more likely to be productive and loyal. 

Appreciate their hard work by celebrating any successes they have.

A simple thank-you card or gift can go a long way in recognizing an employee’s efforts, especially if it comes at the end of something complex and tedious such as finishing up some big project on deadline with no mistakes! 

You’ll make them feel good about themselves and inspire others around town who may need motivation as well.

Whether it’s a big project that’s been completed or a small daily victory, take the time to acknowledge and celebrate your employees’ successes. You can do this by throwing a party, giving out awards, or simply taking the time to verbally thank them.

Moreover, celebrating successes is a great way to build team spirit and encourage collaboration. 

When employees feel like they’re part of a winning team, it’s not just the work that gets done better. 

People also come out of their shells and start helping each other because there is selfless motivation within the organization to succeed as one group rather than individuals.

Whatever method you choose, make sure your employees know that you are grateful for their efforts and proud of their accomplishments.


Increasing Employee Retention and Keeping your Employees Happy is a challenging task. The best way to do this is by showing them that you care about their well-being and success.

You should start by getting to know them personally and showing an interest in their lives outside of work. Make it a point to give them regular feedback, both positive and constructive.

Hearing your employees’ suggestions and valuing their input is a great way to show that you’re open to new ideas.

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