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.
She also emphasised the importance of an organization’s leadership to exhibit behaviors that foster belonging, such as appearing and participating in DEIB events. “When people see that the most senior people in the company prioritise these events and make an effort to understand the experiences of others, it sends a powerful signal and sets the tone for others to follow,” she said.
Invest in career growth
For companies struggling with high attrition rates, Antonius Handoko, HR Director of Indonesian gas company Samator Group, suggests implementing talent pool programs that push for upskilling based on competency and performance to convince workers to stay.
Hanoko also recommends creating a work environment that encourages innovation and career advancement. Rather than focusing on quantity, it might be better to invest more in high-potential employees who have big aspirations for themselves and the business.
Take advantage of AI
Lauren Huntington, a psychologist and EX strategist at Qualtrics, suggests using AI-driven tools not just to track employees but also to get real-time insights into employee concerns, such as stress levels, and have more personalized conversations with them.
Huntington also suggests using AI with a more predictive approach in addressing retention. Instead of focusing on trying to eliminate turnover, she suggests organizations use AI to identify early indicators and become more proactive in addressing them.