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Career Advice
HR Insights
Guest Author
23 December 2025
The success of your business rests on the shoulders of your talented people. But those same high-value employees are constantly targeted by recruiters offering better opportunities. That is the unfortunate reality of today’s labor market.
Data suggests that retaining employees is a challenge. Right now, according to Gallup, more than half of all U.S. employees are watching for or actively seeking a new job. This number is staggering and shows underlying dissatisfaction.
While overall turnover rates might look slightly lower than in previous years, you cannot relax. Many employees are staying because they prioritize job security over switching roles. They are waiting for the economy to feel safer before they jump ship. Relying on economic fear to keep your talent is a huge risk for your business.
In this article, we’ll share a few strategies that can help you navigate the challenges of employee retention. But before we jump into it, let’s take a look at what causes employees to leave.
Before you can fix a problem, you must understand it. Here, we’ll break down some of the most common issues that cause employees to look elsewhere.
Money is always a factor, but today it is driven by inflation. Economic survival is the core concern for many employees. Nearly two-thirds of Americans believe their current salaries are not keeping up with inflation. Many employees are struggling to make ends meet due to rising real-world costs.
The average salary increase has been falling for two straight years. A 3.6% average raise barely keeps pace with the current 2.4% inflation rate. The raises you give might feel like stagnation in real terms. When an employee cannot maintain their lifestyle, an external offer becomes tempting.
People naturally crave progress and forward momentum in their careers. When they hit a dead end, they quickly start planning their exit. A lack of clear opportunities for growth is the second-biggest reason people leave, even from companies with great cultures.
This challenge includes both a lack of promotions and a shortage of professional development. Approximately one-third of employees who voluntarily quit cite career movement as their main reason for leaving. If a company fails to create employability, people will look elsewhere to grow.
A toxic culture is a stronger driver of attrition than job insecurity or a lack of recognition. This toxicity can manifest in several painful ways. Common signs include abusive managers, a cutthroat atmosphere, and employees feeling deeply disrespected.
When boundaries between professional and personal life disappear, employees feel constantly on call. Continuous exposure to this stress leads directly to burnout, reduced performance, and emotional exhaustion.
Bad management practices, like blaming or undermining, amplify toxicity. If managers lack proper training and support, they cannot effectively lead a healthy team.
Here are a few ways you can navigate the challenges of employee retention:
A positive work environment is something employees value. Leaders must work every day to make staff feel seen and valued. Acknowledge accomplishments often, even in quick team meetings or emails. This consistent acknowledgment helps people feel motivated and connected.
Bonuses are great, but non-monetary recognition often creates deeper loyalty. Give specific, sincere credit where it is due. A thoughtful public thank you creates a positive ripple effect throughout the organization.
Time off is perhaps the most valued non-monetary gift you can give. Consider offering a half-day on Friday or off on a birthday as a reward for great work. This costs nothing yet is highly valued because it relieves stress and supports personal life.
A handwritten note detailing a specific achievement also goes a long way. Personalized recognition shows you see the individual, not just their job output.
You could also use peer-nominated awards to foster trust and team appreciation. This takes the recognition burden off management alone.
If you do not offer internal growth, high performers will rationally find it externally. Your business must provide compelling, structured development opportunities. Clearly map out the career ladder for promotions. Employees need to know exactly what skills and knowledge are required for the next step up.
Growth, however, isn’t only vertical. Offering career lattices, such as lateral transfers, job rotations, or cross-department assignments, helps employees develop new and diverse skills. These opportunities keep work engaging while allowing the company to strengthen internal capabilities and fill critical skill gaps.
Provide reskilling opportunities, too. In healthcare fields like nursing, for instance, nurse turnover rates are at an all-time high. The solution lies in career advancement. Many bedside nurses aspire to step into leadership positions like nurse manager, clinical educator, or director of nursing.
The Doctor of Nursing Practice (DNP) degree prepares graduates to take on leadership roles. Baylor University adds that nurses with a BSN complete the DNP program in 3 years and 4 months, while those holding an MSN finish it in 18 to 24 months.
If you run a healthcare organization, you could encourage nurses who want to transition into leadership to pursue a DNP degree. For working professionals who need to balance their careers with their education, universities offer the DNP degree online.
Regardless of whether they choose, consider offering tuition assistance, partial sponsorship, paid study hours, or exam fee reimbursement to make reskilling easy.
Work-life balance is a key retention factor. Work-life balance, along with personal well-being, is important to employees seeking a new job. Flexible options allow employees to better manage their personal and professional lives. These increase job satisfaction by giving workers more autonomy over their schedules.
The most common setup today is hybrid work. About 52% of U.S. remote-capable employees prefer a hybrid structure. These workers often prefer either working from home or having flex-time, which allows them to choose their daily start and end times.
Employees complete their total hours in fewer days, like 4 instead of 5. This gives them a full extra day to recharge. You must always anchor your flexibility policy in trust, not in fear. A rigid return-to-office rule often meets strong resistance.
Flexible work options also require a fundamental shift in how your team communicates. Trust employees to work autonomously. This maximizes their personal productivity. Instant replies should not be the expected norm.
Clearly set response expectations for different tools. Define if a request needs a response in 2 hours or 2 days. Also, use tools to facilitate updates outside real-time meetings. This levels the playing field for flexible schedules.
Company culture is the primary driver for leaving. But compensation is often the initial trigger. If pay feels unfair or out of step with the market, even the most loyal employees may begin to look elsewhere.
Schedule an overall review at least every 12 to 24 months. If your company is in a rapidly changing field, such as tech or healthcare, review salaries more frequently. Waiting too long means you risk falling behind the market.
Pay transparency is now redefining how people view their jobs. Employees, especially younger workers, highly value fairness and trust in pay practices.
Be clear about how pay is determined, what influences raises, and how performance impacts earnings. Even when budgets are tight, transparency builds credibility and reduces frustration.
It’s also important to account for regional differences. Minimum wage varies by state. In Oklahoma, for instance, it’s $7.25 per hour. But it’s $16.50 in New York. These differences affect both employee expectations and market competitiveness.
In many states, employees can legally request pay ranges for their roles. Make sure managers are trained to handle these sensitive compensation conversations professionally, confidently, and with empathy.
At its core, employee retention comes down to this: treat people like humans, not resources.
Employees want to feel respected, supported, challenged, appreciated, and connected. They want meaningful work, fair compensation, and leaders who genuinely care.
When businesses build a culture that honors these needs, retention becomes much easier, and the workplace becomes a place people are proud to call home.
Weave these strategies into your everyday operations, and you’ll begin to see a meaningful shift. That is, higher morale, stronger engagement, and employees who choose to grow with you rather than look elsewhere.
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