Keep your top talent without breaking the bank (or their spirit)

Let’s talk employee retention. In a job market as unpredictable as the British weather, holding onto great employees can feel like a Herculean task.

A good retention rate hovers around 90%, but with the UK’s average turnover at 15%, there’s clearly room for improvement. Why does this matter? Losing talent isn’t just a recruitment headache – it’s a financial one. Replacing a single employee can cost businesses up to six months of their salary.

Plus, with over 40,000 monthly searches for “resignation letter template” in 2023, it’s clear employees are always weighing their options.

Ready to stop the churn? Check out the employee retention strategies below.

12 employee retention strategies

Retaining employees isn’t rocket science. It’s about understanding what makes people tick and delivering on it. We’re exploring aspects like competitive pay and fostering a sense of belonging among many other strategies that will help you build a workplace that your team won’t want to leave.

1.Provide competitive pay

Let’s be honest: money talks. No one’s staying in a job where they feel underpaid – no matter how many free biscuits are in the breakroom. Offering competitive salaries and meaningful bonuses not only attracts top talent but keeps them motivated.

Think of it this way: paying a little extra now could save you big in recruitment costs later. Always remember, underpaid employees rarely stick around to become overachievers.

2.Recognise and reward performance

Recognition is a strategic investment. According to a Gallup study, employees who feel adequately recognised are twice as likely to say they’ll stay with their current employer.

Go beyond the tired “Employee of the Month” scheme with personalised rewards – like premium Castelli notebooks for standout projects, branded gym kits for wellness champions or even a paid experience tailored to their interests. Recognition, when specific and meaningful, fosters a culture of appreciation that keeps your top performers inspired.

3.Offer flexible work arrangements

The 9-5 is dead, and for good reason. Employees value flexibility – whether through remote work, compressed hours or adjusted start times for the school run. Beyond being perks, these arrangements are proven to boost productivity and morale. A day off every other Friday or a hybrid work model can turn “I quit” into “I’ll stay.”

4.Maintain open – and ongoing – communication

Transparency builds trust. Employees want to feel heard and valued, and ongoing communication is the key. Conduct stay interviews to uncover what keeps them happy – or what might drive them away. Regular one-to-ones, anonymous feedback channels and clear updates on company goals foster connection and loyalty in an otherwise disconnected world.

5.Focus on employee wellness

Burnout is real, and ignoring it is costly. A 2022 Edenred study found overwork and lack of management care for wellbeing among the top reasons employees quit (14% each). Address this with subsidised gym memberships, health insurance or team activities.

Branded yoga mats or resistance bands (or any other sport-themed merch) add a thoughtful, wellness-focused touch, reinforcing your commitment to their health.

6.Present upskilling opportunities

In a world of rapid change, standing still is falling behind. Employees crave growth, and offering upskilling opportunities shows your commitment to their career progression.

From advanced training programs to leadership workshops and certifications, investing in their development creates a win-win: a motivated workforce equipped with skills to drive your business forward.

7.Hire the right person in the first place

Retention starts with recruitment. Aligning candidates with your company’s values and culture is critical. Take the time to refine your hiring process – use structured interviews, personality assessments and realistic job previews. By selecting the right fit from the outset, you reduce turnover and set the stage for long-term success.

8.Train effective leaders

Great leaders inspire loyalty; bad ones drive employees away. Invest in leadership development programs that equip managers with emotional intelligence, communication skills and the tools to lead with empathy.

A strong leadership team fosters a positive workplace culture, ensuring employees feel supported and understood – a critical factor in retention.

9.Keep tabs on your competition

Your competitors are not only vying for customers but also targeting your employees. Research their pay scales, benefits and workplace reputation to identify gaps in your own offering. If they’re known for an enviable culture or innovative perks, adapt those ideas to your business. Staying informed helps you outshine the competition and keep your team engaged.

10.Work on onboarding and orientation

First impressions matter, and onboarding sets the tone. A Human Capital Institute study found experience-driven onboarding improves retention by 82% and productivity by 70%. But here’s the kicker: only 12% of employees say onboarding is done well.

Shift from a “check the box” approach to an ongoing process that spans a year, emphasising human connection and managerial involvement. When managers actively engage, new hires are three times more likely to see onboarding as a success.

11.Motivate with branded merch

A cohesive culture starts with the little things – like branded merch. Employees connected to their company culture are four times more likely to stay engaged and 43% less likely to look elsewhere. Thoughtful items, like premium water bottles or cosy hoodies, foster a sense of belonging and pride while subtly reinforcing your brand values.

12.Celebrate diversity, and work on improving inclusion

Diversity – it’s not a buzzword – it’s a business imperative. A 2023 DDI report found women and minorities often feel they must leave companies to advance. To combat this, integrate inclusion into leadership training and workplace policies, removing barriers to growth.

Firms in the top quartile for diversity see 39% higher financial returns, proving inclusion is both ethical and profitable.

Employee retention starts with understanding

Retention isn’t solved with beanbags and free biscuits. It’s about digging deeper. Exit interviews? Goldmines for uncovering why Sarah in sales bolted to your competitor. Turnover data? A crystal ball revealing cracks in your strategy. Is it dodgy leadership, low pay or a culture as flat as last week’s pint?

Fix it. Retention is a game of constant tweaks – listen, learn and act. When you treat your employees as humans, not numbers, they’ll stick around longer than that awkward onboarding PowerPoint you should’ve ditched years ago.

And while it’s not the whole solution, zooming in on the details can make a world of difference. Rewarding achievements with premium items and reinforcing company culture through thoughtful branded merch shows your team they’re valued. After all, it’s the little touches that build loyalty.

Totally Branded has everything you need to create those small moments that leave a big impression.