5 Retention Strategies To Keep Your Best Talent

Employee separations (layoffs and voluntary quits) were down slightly as of the Nov 2023 JOLTS report, but it’s likely there are more layoffs to come in 2024. Several tech and finance giants have already announced layoffs in the first weeks of the new year, and one survey by ResumeBuilder reports that more than one-third (24%) of business leaders say their company will lay off workers in the weeks and months to come.

There are many contributing factors and variables that influence employee retention in an organization, and the specific reasons that employees leave may differ from one organization to the next. Industry trends, technological advancements, cultural challenges, and many other factors all impact a company’s retention rates.

As we plan for the year ahead, it’s important to look back and acknowledge the events of the recent past that are influencing our present and near-future challenges. In 2023, economic uncertainty and shifting employee attitudes contributed to retention issues. Here’s a look at some of the top retention trends from 2023 that continue to influence the new year.

• As we mentioned above, several industries saw layoffs in 2023. Layoffs (especially of the mass variety) may actually contribute to higher voluntary quit rates, as some employees feel they need to leave on their own before they are let go. This means employers — especially those with planned layoffs — need to take preventive action to retain remaining staff.  
• Certain industries and roles may be more at risk than others. Consulting roles, for instance, currently face a retention crisis as many professionals seek higher salaries and better work culture. (More than a third of folks in those roles plan to look for a new job in 2024, according to a recent report from The Barton Partnership.)
• Compensation is a large factor in employee retention regardless of role or job title. According to Gallagher's 2023 U.S. Organizational Wellbeing Report, more than three-quarters (78%) of employers “enhanced existing employees' base salaries” and another 40% enhanced variable compensation. More than a third (39%) of employers “expanded medical benefits and 38% upgraded their wellbeing initiatives — both up six points from 2022.”

Understanding why staff retention is important — beyond obvious factors like the cost of replacing employees who leave — is crucial to creating a plan for boosting employee engagement and satisfaction. In the pages that follow, we’ll examine how employee retention impacts an organization and outline the most effective strategies for improving employee retention in the short- and long-term.