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Career Advice

13 Effective Employee Retention Strategies

Dennis O'Reilly, J.D.

July 29, 2025

Career Advice

13 Effective Employee Retention Strategies

Dennis O'Reilly, J.D.

July 29, 2025

Photo by Israel Andrade on Unsplash

When a valued employee leaves a company, the impact can be felt long after their last day, and far beyond their team and department. The cost of recruiting and onboarding a replacement merely scratches the surface of the financial damage such a departure can inflict on the organization. It can safely be said that an ounce of retention is worth a pound of replacement.

Our 13 approaches to enhancing your business’s employee retention rate begin with a commitment from managers to heed and address the reasons valued workers resign voluntarily. This is the first step in creating a work environment that employees thrive in.

Understanding the Reasons for Voluntary Turnover

SMB owners and managers facing high employee turnover rates are apt to blame any number of external causes, from a worker-friendly job market to an inability to meet their salary demands. Yet according to iHire’s 2024 Talent Retention Report, the top three reasons cited by departing employees all relate to poor management:

  • 32.4% of voluntary departures are due to a toxic work environment
  • 30.3% are the result of poor company leadership
  • 27.7% are caused by being unhappy with a manager or supervisor

This may sound like an indictment of current management practices, but in fact, it’s good news for employers because hiring and training quality managers is within their control. The myth of the natural-born leader is dispelled by the success of leadership training programs for managers such as those offered by the American Management Association.

Top 13 Employee Retention Strategies for SMBs

Few managers and small business owners have the extra time to invest in cultivating positive work relationships with their employees. Yet few business investments will generate such a handsome return. Following even a handful of these 13 employee retention strategies will translate directly into a more fulfilled and motivated workforce, and rosier financial statements for your business.

Emphasize Cultural Fit When Recruiting

AI is now a component of most recruiting software for quickly sifting through mountains of resumes to surface the top-qualified candidates. What AI can’t accomplish (yet) is identifying the job applicants that are the best match for your company’s unique culture. A good cultural fit is a candidate whose values, personality and attitude align closely with your business’s core principles.

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Read full article here

When a valued employee leaves a company, the impact can be felt long after their last day, and far beyond their team and department.
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