How to Improve Employee Retention: 5 Strategies That Work

Nov 1, 2025

9

By James Harwood

woman viewing hr compliance checklist with team in background

Replacing great people is expensive—the costs pile up: lost momentum, burned‑out teams, missed goals, and knowledge walking out the door. If you’re seeing exit interviews cite pay, flexibility, poor onboarding, or limited growth, you don’t have a talent problem; you have a retention system problem. For growing small and mid-sized companies, the challenge isn’t knowing what “good” looks like—it’s building the processes and manager habits that keep people engaged and performing, without adding noise.

This guide gives you five proven moves to reduce churn and lift performance. For each, you’ll get why it drives retention, what great looks like, 90‑day actions to implement now, and the metrics to prove it’s working. We’ll cover partnering with an embedded HR team, standout onboarding and manager enablement, modern pay and benefits, clear career paths, and a listening culture that recognizes results. Ready to turn retention into an advantage? Let’s get to work.

1. Partner with an embedded HR team (Soteria HR) to build your retention engine

If you’re serious about how to improve employee retention, don’t bolt on programs—build a system. An embedded HR partner like Soteria HR connects compliance, manager habits, pay/benefits, and culture into one operating rhythm. That cohesion addresses the top reasons people leave (pay, workload, growth, leadership) and protects the business; replacing a technical employee can cost 100–150% of salary, so prevention pays.

Why this drives retention

Retention improves when leadership signals commitment, managers have tools, and decisions are grounded in data—not anecdotes. An embedded team aligns policy with practice, keeps EEO and fairness front and center, and installs listening posts (surveys, stay interviews) so you can act before people exit.

  • One owner of the talent lifecycle: Recruiting → onboarding → development → recognition → offboarding.
  • Manager enablement at scale: Practical training on 1:1s, feedback, recognition, and anti-harassment.
  • Proactive compliance and risk management: Clear policies and swift, fair issue handling build trust.

What great looks like

You have a named HR lead embedded with your exec team, a quarterly retention roadmap, and a custom HR playbook tied to business goals. Managers follow consistent rhythms, and workforce data informs decisions across pay, promotions, and workload.

  • Custom HR playbook and SLAs: Who does what, by when, with templates and checklists.
  • EEO-informed analytics: Hiring, promotion, and separation trends by group to spot inequities early.
  • Benefits strategy that fits your team: Competitive, understandable, and actually used.

90-day actions

Start with a focused build, not a big-bang overhaul. Establish baselines, fix high-friction gaps, and equip managers fast.

  1. Run a retention audit: Voluntary exits, reasons, 90‑day attrition, eNPS, leave/accident spikes.
  2. Launch stay interviews and a pulse survey: Capture why people stay and what might push them out.
  3. Tighten the foundations: Update handbook, anti-harassment process, complaint intake, and response SLAs.
  4. Enable managers: Train on weekly 1:1s, expectations, recognition, and fair performance decisions.
  5. Benchmark pay/benefits and make targeted adjustments: Prioritize hot roles and compression risks.

Metrics to track

Measure what matters and review monthly with leaders. The goal is fewer surprises and faster course corrections.

  • Voluntary and regrettable turnover
  • 90‑day new‑hire retention
  • eNPS/engagement and manager 360 scores
  • Internal mobility rate and time-in-level
  • Offer acceptance rate and time-to-fill
  • Turnover and promotion by EEO group (equity check)
  • Benefits adoption, PTO usage, and leave spikes (stress signals)

2. Design a standout onboarding program and equip managers to lead well

Onboarding is where promise turns into performance—or buyer’s remorse. If you want to know how to improve employee retention, start with the first 90 days. A structured, human onboarding experience plus capable managers reduces the most common quit triggers: feeling unsupported, unclear expectations, culture misfit, and weak communication.

Why this drives retention

Research-backed basics matter: strong onboarding and mentorship, clear communication, and frequent feedback increase job satisfaction and reduce early attrition. Training supervisors on EEO, anti-harassment, and fair decisions builds trust and signals that leadership walks the talk.

  • Role clarity from day one: What success looks like in 30/60/90 days.
  • Manager relationship and cadence: Weekly 1:1s, fast feedback, recognition.
  • Belonging and fairness: Inclusive practices, EEO awareness, and safe channels to raise concerns.
  • Momentum early: Quick wins that prove value and build confidence.

What great looks like

Your onboarding is a repeatable playbook, not a scavenger hunt. Every new hire meets their manager, mentor, and cross-functional partners early; learns the culture and policies; and has a clear plan to contribute meaningful work quickly.

  • 30/60/90 plan and success metrics tailored to the role.
  • Assigned buddy/mentor to navigate people, tools, and norms.
  • Manager enablement: Weekly 1:1s, documented expectations, and fair feedback.
  • Cohort orientation covering culture, EEO, anti-harassment, and benefits.
  • Resource hub with checklists, FAQs, and how‑to videos for hybrid/remote.

90-day actions

  1. Map the onboarding journey for top roles; build day 1 and week 1 checklists.
  2. Create 30/60/90 templates with 3–5 measurable milestones per role.
  3. Stand up a buddy program; train buddies and managers on their roles.
  4. Schedule manager 1:1s for all new hires (weekly) and a 30‑day stay interview.
  5. Launch a simple onboarding hub (docs, tools, policies, contacts) and track completion.

Metrics to track

  • 90‑day new‑hire retention
  • Time‑to‑productivity (first-value milestone achieved)
  • Onboarding task completion rate
  • New‑hire eNPS/pulse scores at 14, 45, and 90 days
  • Manager 1:1 adherence and quality (brief survey)
  • Buddy/mentor participation and feedback

3. Pay fairly and modernize benefits, flexibility, and well-being

Compensation is table stakes, but fairness, flexibility, and well-being keep people. If you’re asking how to improve employee retention, start by aligning pay to market, removing inequities, and offering benefits people actually use—plus sane workload and flexible work options. Research shows pay and benefits, feeling overworked/unsupported, and work‑life balance are top quit drivers, while flexible schedules and remote options are among the most valued perks, with many workers also preferring home‑office stipends.

Why this drives retention

People don’t leave just for a bigger paycheck; they leave when pay feels unfair, benefits disappoint, and the job strains their life. Transparent, competitive pay and modern perks signal respect and reduce burnout. Wellness offerings (mental, physical, financial) further boost job satisfaction and loyalty.

What great looks like

Set clear pay bands, review them regularly, and communicate total rewards so employees see the full value. Pair that with flexible work norms and simple, high‑uptake benefits that support real life.

  • Market‑aligned pay bands with annual benchmarking and equity checks.
  • Clear total rewards (salary, bonus, benefits, stipends) in plain English.
  • Flexible work options (hybrid, flextime, compressed weeks) with manager guardrails.
  • Wellness that works: EAP/mental health, retirement support, and practical stipends (e.g., home office).

90-day actions

Focus on the biggest friction points first and make visible, fair changes.

  1. Benchmark hot roles; fix compression and clear pay outliers.
  2. Publish pay bands internally and send total rewards statements.
  3. Pilot flexible work guidelines and train managers on boundaries and workload.
  4. Add two high‑impact perks: mental health access and a modest home‑office stipend.

Metrics to track

Track adoption, equity, and impact—not just spend.

  • Offer acceptance rate and time‑to‑fill
  • Voluntary turnover citing pay/benefits/work‑life
  • Pay equity gaps and compa‑ratio distribution by group
  • Benefits enrollment/utilization and EAP usage trends
  • PTO usage and after‑hours messaging rates (burnout proxy)
  • Engagement scores for fairness, recognition, and flexibility

4. Create clear career paths with development, coaching, and succession

People don’t leave companies so much as they leave stagnation. If high performers can’t see their next step, they’ll go find it. Pew research shows 63% of workers who quit cited no advancement opportunities. If you’re asking how to improve employee retention, build visible paths, invest in skills, and coach managers to grow people—not just oversee tasks.

Why this drives retention

Clarity lowers anxiety, development builds capability, and coaching turns feedback into progress. Mentorship deepens connection, and succession planning makes advancement intentional and fair.

  • Transparent paths: Roles, levels, and criteria are known.
  • Real development: IDPs, upskilling, and stretch work.
  • Fair movement: Data-driven promotions and diverse feeder pools.

What great looks like

Employees can see what it takes to advance and get time and resources to get there. Managers act like coaches; promotions reflect skills, results, and values.

  • Career architecture: Levels, competencies, example work, and pay bands.
  • IDPs with time/budget: Curated learning tied to role skills.
  • Mentorship + 360s: Guidance and well-rounded feedback.
  • Internal mobility: Clear postings and a quick, fair process.

90-day actions

Start simple, make it visible, and enable managers fast.

  1. Publish draft ladders for top roles with 3–5 competencies per level.
  2. Roll out a one-page IDP; set manager–employee goals within 30 days.
  3. Launch a mentorship pilot and a monthly stretch‑project slate.
  4. Run a light talent review to flag successors and feeder pools.

Metrics to track

Measure movement, equity, and impact—not just course completions.

  • Internal fill rate and mobility
  • Time‑in‑level and promotion velocity
  • Promotion/pay outcomes by EEO group
  • IDP completion and skill attainment
  • 6–12 month post‑promotion success/retention

5. Listen, recognize, and act: build an inclusive, data-driven culture

Culture isn’t a poster; it’s what employees experience in one‑on‑ones, recognition, and how issues get handled. If you’re serious about how to improve employee retention, build a loop that listens (surveys, stay interviews), recognizes great work, and acts on trends. The EEOC highlights climate surveys and 360s as early warning systems; pair those with inclusive programs and fair processes.

Why this drives retention

People stay where they’re heard, respected, and treated fairly. Formal recognition boosts satisfaction and loyalty—high‑performing companies are more likely to have recognition strategies—and inclusive practices reduce preventable exits.

  • Listening reduces surprises: Pulse/climate surveys, stay interviews, and 360s surface friction early.
  • Recognition fuels motivation: Frequent, specific thanks connects effort to impact.
  • Fairness builds trust: Clear anti‑harassment processes and EEO‑informed decisions signal safety.

What great looks like

Leaders review people data monthly, share what they heard, and publish action items. Recognition is habitual, not holiday‑only. Inclusion is visible via Special Emphasis/affinity groups and equitable outcomes.

  • Cadenced listening: Quarterly pulses, annual 360s, and manager office hours.
  • Lightweight, frequent recognition: Peer‑to‑peer shout‑outs and manager spot awards.
  • Inclusive infrastructure: Employee groups, accessible policies, and swift, fair investigations.

90-day actions

Stand up the loop, make it safe, and show you’ll act.

  1. Launch a 6‑question pulse and manager 360 lite; share results and next steps.
  2. Run stay interviews in critical teams; tag themes by driver (pay, workload, growth, management).
  3. Train managers on recognition (weekly) and respectful feedback.
  4. Refresh anti‑harassment and complaint intake; publish SLAs and contacts.
  5. Invite/seed affinity groups and schedule exec sponsorship check‑ins.

Metrics to track

Use data to guide decisions and prove progress.

  • eNPS/engagement by team and trend
  • Recognition frequency and coverage (peer and manager)
  • Turnover and exit‑reason trends (by manager/EEO group)
  • Complaint volume, resolution time, and outcomes
  • Participation in affinity groups and listening activities
  • Manager 360 scores (respect, clarity, inclusion)
  • Leave/PTO spikes and after‑hours activity (stress proxy)

Make retention a system

Retention isn’t a program—it’s a system. When manager habits, fair rewards, clear paths, and real listening run as a single operating rhythm, turnover drops and performance climbs. Make it cadence‑based: weekly 1:1s and recognition, monthly people reviews with data, quarterly plans that tie onboarding, pay, development, and inclusion to business goals.

If you need momentum, run a 90‑day build: audit the leaks, shore up policies, equip managers, launch stay interviews and pulses, fix pay hot spots, and publish a simple roadmap. Then iterate quarterly. Want an embedded partner to design and run the system with you? Meet Soteria HR—your on‑call HR team to protect, grow, and retain your talent.

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