Retaining employees has gotten tougher in recent years. Low unemployment rates and widespread labor shortages make it easy for employees to jump ship, while the rise of gig and freelance work only adds to the competition. Businesses are often under pressure to keep their employees satisfied and engaged, or risk high turnover.
Employees’ expectations are shifting, too. Today’s workforce, especially younger generations, tends to prioritize companies that reflect their values, offer flexibility, and encourage a better work-life balance. All these shifts have made retention more challenging, yet keeping employees for the long haul has never been more critical.
Why employee retention matters
If your business relies heavily on hourly employees, you can be caught in a never-ending cycle of replacing workers instead of driving your business forward. When an employee leaves, the remaining team members often face an increased workload, which can exacerbate burnout, frustration, and reduced productivity. This, in turn, puts them at greater risk of leaving, perpetuating a vicious cycle of turnover. To break free from this, focusing on retention is crucial. With more long-term employees, your company gains the stability and momentum needed to thrive. Here’s how improving retention empowers your business to grow and succeed.
Lower hiring costs: Hiring and onboarding new employees means paying for job ads, interviews, training, and productivity loss as new hires get up to speed. Replacing a frontline worker costs about 40% of their salary—and that cost goes up to 200% for managerial or leadership roles. Retention lets you cut those costs and drive long-term value for your business.
Better work performance: Experienced employees know the workflow, company culture, and expectations inside and out—and often have honed specialized skills that speed up processes but elevate the quality of their work. Plus, a team that’s been together for a while moves like a well-oiled machine, boosting your bottom line and setting your business up for long-term success.
Improved customer experience: When employees stick around, they become experts on your products, services, and customer needs—and your customers notice the difference. Over time, this builds strong relationships and greater brand loyalty.
Fewer risks: Long-term employees who are more familiar with company policies and safety procedures help minimize errors, accidents, and legal risks. Their experience creates a safer, more compliant work environment.
Higher morale and engagement: Constant turnover drains your team’s energy and morale, leaving remaining employees feeling burned out and frustrated. A stable workforce, on the other hand, fosters a positive, collaborative environment where employees feel valued and invested in the company’s success.
Stronger brand: When employees stay and thrive, it improves your reputation as an employer and strengthens your brand to help you attract more top talent. Once you know how to retain employees, it’ll be easier to build an increasingly loyal, engaged workforce.
15 employee retention tactics to engage and motivate your team
Employee retention requires creating a workplace where employees feel valued, supported, and motivated to stick around. Here are 15 actionable employee retention tactics that will not only improve satisfaction but also boost productivity and morale within your team.
1. Start with competitive wages and flexible pay options
People expect fair pay for their work. Fair pay boosts satisfaction and loyalty—and reduces financial stress so employees can focus on their jobs. In fact, the number one reason employees leave their jobs has to do with pay and benefits, according to Gallup.
To stay competitive, make sure your pay is at or above the industry average, and be transparent about pay structures and opportunities for raises. And consider offering creative benefits like earned wage access (EWA) that allow employees to access their earned wages before payday. The option to tap into same-day pay gives your team members the financial flexibility to manage unexpected expenses.
2. Streamline the onboarding process
A smooth, supportive transition into a new role helps new hires build confidence, and reduce the uncertainty and overwhelm that can lead to early turnover. To improve onboarding, streamline administrative tasks, offer a structured orientation, and set clear expectations from day one. Ensure your training program is effective and make a deliberate effort to introduce new hires to the team so they feel connected to the company culture right away.
3. Offer predictable, consistent work schedules
Predictable schedules give employees stability and control over both their professional and personal lives. When workers know their hours in advance, they can plan with confidence, reducing stress and the potential of burnout from unpredictable shifts. To implement this, prioritize advance scheduling—ideally at least two weeks ahead—and offer fixed or regular hours whenever possible, considering employees’ availability and preferences.
4. Allow flexible scheduling
Reliable schedules are valuable, but life doesn’t always stick to a routine. Flexible scheduling allows employees to balance work with personal commitments like medical appointments, childcare, or other obligations—and leads to higher morale and job satisfaction.
Allow for shift swapping, compressed workweeks, or staggered hours when possible. Be open to requests and do your best to meet individual employees’ unique needs. Scheduling software can help automate the process, ensuring fairness and transparency while maintaining efficiency.
5. Provide opportunities for meaningful work
Give employees the chance to grow by offering skill development opportunities and encouraging them to take on projects that align with their strengths. When employees engage in meaningful work and feel their contributions truly matter, they gain a stronger sense of purpose and dedication.
6. Establish clear career paths and job stability
Job stability, paired with growth opportunities, reduces turnover and fosters a loyal, motivated workforce. Clear career paths give employees direction and purpose, encouraging long-term commitment. Provide training and mentorship to help them reach their goals and invest in the company’s success.
7. Celebrate milestones and achievements
Regularly acknowledge both individual and team successes, whether through public praise, rewards, or small celebrations, to show employees that their contributions are noticed and appreciated. This can be done through team meetings, recognition platforms, or even informal shout-outs to boost employee morale and reinforce a culture of appreciation.
8. Foster strong relationships between managers and employees
Building strong, trust-based relationships between managers and employees is key to a positive work culture. Encourage regular one-on-ones where managers can provide constructive feedback, listen actively, and address any concerns. Leadership development programs focusing on emotional intelligence and communication skills can help managers strengthen these connections and better support their teams.
9. Create open and consistent communication channels
To ensure employees feel informed and connected, establish clear and consistent communication throughout the organization. Offer multiple channels for feedback—such as digital tools, team meetings, or informal check-ins—that allow employees to voice their thoughts and receive timely updates. Encourage transparency from leadership, ensuring everyone is on the same page regarding expectations, goals, and company changes.
10. Offer financial wellness benefits
Financial wellness programs are becoming increasingly popular, not just because employees have come to expect them, but also because they also help businesses thrive. By improving employees' financial wellness, you can reduce financial stress, which in turn increases engagement and productivity at work.
Providing resources on budgeting, saving, and managing debt empowers employees to take control of their financial future. Best of all, these programs don’t have to be expensive—Some free-to-employer earned wage access (EWA) programs, for example, include financial education as part of their services.
11. Offer accessible, user-friendly tools
Helpful tools for employers include easy-to-use scheduling apps, time-tracking software, and communication platforms that simplify workflow, reduce administrative burdens, and make it easier for employees to stay connected and organized. In addition, offering a user-friendly earned wage access app can help your team members manage their finances more effectively and reduce financial stress.
12. Foster employee autonomy in their roles
When employees have the freedom to make decisions and manage their own tasks, it sparks a sense of ownership and accountability. Autonomy fuels confidence, enhances job satisfaction, and drives performance. Encourage your team to take initiative and make choices within their roles, while equipping them with the resources and support they need to thrive.
13. Recognize and reward employees
Regular, personalized recognition goes a long way in making employees feel valued. And tangible rewards—whether monetary or not—can serve as a clear reminder that their hard work directly contributes to the company’s success.
14. Launch an employee referral program
Employee referral programs can be a very effective tool for attracting top talent while boosting morale. Referred candidates are often a better cultural fit and tend to stay longer. Plus, employees who refer candidates tend to feel more engaged and invested in the company’s success. To make it work, offer enticing incentives for successful referrals and encourage employees to recommend people who align with your company’s values. A well-designed referral program can also reduce hiring costs, making it a win-win for all.
15. Conduct stay interviews to identify needs
Stay interviews are proactive conversations with employees designed to uncover what keeps them engaged and motivated to stay. Hold them regularly and ask open-ended questions that encourage employees to share insights you might not have even considered. This approach helps you stay ahead of potential challenges and become an employer of choice.
How earned wage access improves employee retention
One powerful tool for improving employee retention in today’s economic climate is earned wage access (EWA). This financial benefit allows employees to access their earned wages before payday, giving them financial flexibility at a time when many Americans are juggling debt, living paycheck to paycheck, or facing unexpected expenses. While traditional paycheck advances might provide temporary relief, offering earned wage access allows employees to manage expenses without taking out loans or falling into debt.
Tapcheck offers the gold standard in EWA. Free for employers, Tapcheck offers employees financial flexibility paired with built-in financial education, all within an intuitive app. Employees using Tapcheck report feeling more financially secure: 69% report reduced stress. What’s more, 50% of users report having a more favorable opinion of their employer for offering Tapcheck.
Ready to retain your best employees with a benefit they’ll actually use and appreciate? Learn more about the many benefits Tapcheck brings to employers.
