In an age where ‘great detachment’ and ‘quiet quitting’ have become pervasive in the workplace, having a loyal, long-term workforce has never been more critical to a company's growth and success.

According to Gallup, employee retention remains a major challenge for 2025, with every one in two employees saying they are open to leaving their jobs. The resulting cost of turnover, which typically varies between 100% to 150% of an employee’s annual salary, can be devastating, especially for smaller organizations.

The reasons employees stay or leave are complex. While Gallup cites pay and benefits continue to be the top reasons for quitting, more employees are pointing to employee engagement, culture, well-being, and work-life balance as reasons for leaving.

In such an evolving landscape, HR leaders must move from a reactive approach to retention to a proactive and strategic one. It also requires a deep understanding of what drives genuine employee engagement and a willingness to invest in the practices that build long-term loyalty and commitment.

The following best practices provide a roadmap for organizations to manage employee retention effectively and create a culture where people genuinely want to thrive.

Provide more support

Workers now want more support from management in their professional growth, says Sarah Rahmani, Vice President of People Experience & DEI at workforce development platforms. If the companies are unable to provide, employees may start to lose sight of their role in their organization, resulting in stagnation or leaving the organization entirely.

To mitigate this, Rahmani advises the implementation of various engagement initiatives, such as tenure rewards programs, quarterly town halls where employees can discuss concerns with the leadership, and regular virtual and in-person events to keep employees interacting across various functions and teams.

Take a ‘people-first’ approach

Aside from traditional perks and activities, people and culture guru Asif Upadhye also recommends taking on a more holistic approach towards retention that focuses more on an employee's well-being, engagement, and encouraging a sense of ownership over their work.

This ‘people-first’ strategy, Upadhye argues, can be achieved through several different ways, including implementing policies prioritizing wellness and flexible work, and more cross-functional interactions. He also emphasizes the importance of shifting from the mindset of calculating the ‘cost of turnover’ to one of investing in the ‘return of engagement’ that comes with a loyal and committed workforce.

Create a culture of belonging

Employees are more likely to stay and thrive within their organization if it makes them feel like they belong, regardless of their background. Katherine Parente, Chief People Officer of enterprise software provider Pegasystems, believes this can be achieved through employee resource groups (ERG) and diversity, equity, and inclusion, and belonging (DEIB) initiatives, where staff can connect with others through shared characteristics, culture, and life experiences.

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