Ultimate Guide to Employee Retention: How to Keep Top Talent

In today’s competitive business landscape, the significance of employee retention cannot be overstated. While attracting top talent is a victory in itself, the real triumph lies in not only retaining that talent but also in keeping them engaged and committed to your company’s mission. 

A high employee turnover comes at a price, and it’s not just the money or resources you’ve put into them. It’s about the loss of expertise (particularly to direct competitors), the disruption to team dynamics and the impact on company culture as a whole. So, the ability to retain your best employees is a critical factor in any company’s long-term success.

Keeping your top talent is a multifaceted challenge and we’ll explore various employee retention strategies and insights that go beyond the bottom line in this guide. 

Keeping employees happy isn’t done by all 

In today’s war for talent, it’s every company’s goal to attract the best of the best – but the journey doesn’t end there. The real work starts with employee retention. Here’s why people leave jobs, and how you can retain your top talent.

12%

Around work anniversaries, job hunting can rise between 6-9%. And right before birthdays, it tends to rise by 12%.

With staff turnover said to cost £30,614 per employee, and with employee happiness said to increase productivity and creativity, a motivated workforce that feels proud to work for your business is priceless. 

The Importance of Employee Retention 

Not sure why employee retention is important to your business? Well, essentially, it promotes the health, success, and stability of any organisation. The time and resources that go into hiring and training are significant, and a high turnover can harm your business outcomes. The importance of high employee retention rates can be broken down into three key sections: improved productivity, company culture and overall growth. 

Improved productivity

When employees stay with a company for an extended period, they become more proficient in their roles. They understand the company’s process, products, and services, which can translate to increased efficiency. This proficiency leads to: 

• A reduced learning curve: New employees require time to adapt to their roles and become productive. Retained employees, on the other hand, are already familiar with their tasks and can be onboarded onto new projects or clients and be able to hit the ground running.

• Consistency in performance: Long-term employees can usually be relied upon to consistently deliver quality work. They have a track record of meeting or exceeding expectations, contributing to a stable, high-performance work environment.
• Effective problem-solving: Experienced employees will have encountered various challenges and have a wealth of knowledge to draw upon, like having a good understanding of company processes, historical context and connections with other departments when addressing issues. This means problems get solved faster with minimal hiccups.

Fostering a positive company culture

A positive company culture is the lifeblood of any thriving company. It defines the values, attitudes and behaviours that guide the collective actions of its employees. One of the main benefits of employee retention is that it contributes significantly to the cultivation of a positive company culture in the following ways: 

• Trust and camaraderie: Long-term employees can build strong and genuine relationships with their colleagues, building trust and camaraderie within teams. They develop a deep understanding of each other’s strengths, weaknesses, and work styles. These bonds create a sense of trust that underpins effective collaboration. 

• Conflict resolution: In an environment of trust and camaraderie, conflicts are less likely to escalate into major disruptions. Employees are more likely to address issues openly and constructively, leading to quicker resolutions and a more harmonious workplace.

• Cultural consistency: Retained employees understand the company’s values and mission. They serve as role models for new hires which helps to maintain cultural consistency even as the company grows.
  
  

Fuelling overall growth 

Employee retention isn’t merely a human resources concern, it’s a strategic imperative that plays a pivotal role in driving an organisation's overall growth and success. Here are just a few of the ways it does so:

• Cost savings: High turnover rates result in significant recruitment and training expenses. When you retain talent, it reduces these costs, freeing up resources that can reinvested into other growth initiatives. 

• Innovation and adaption: Long-term employees are more likely to feel comfortable proposing and implementing innovative ideas and have the background knowledge to know what avenues have been explored and their success rates.
• Talent attraction: Organisations that are known for employee retention are often more attractive to top talent. A positive reputation can lead to a steady influx of skilled professionals, giving you an edge over competitors. 

Why do people leave jobs?

There’s an age-old mantra that goes: “People don’t leave jobs, they leave managers.” And while that might be true in some cases, a recent employee engagement survey at Facebook suggested otherwise: 

“When [Facebook] wanted to keep people and they left anyway, it was because they didn’t like the work, their strengths were underused, or they weren’t growing in their careers. So, people at Facebook do quit a job. But who’s responsible for what that job is like? Managers.”

So, the good news is that managers have the power to reduce staff turnover, but there’s a little more to the story when it comes to risk factors.

Moments of reflection fuel job-hunting 

Around work anniversaries, job hunting can rise between 6-9%. And right before birthdays, it tends to rise by 12%. The logic is pretty simple; seemingly arbitrary dates trigger moments of reflection, and we find ourselves questioning whether we’re on the right track.

Competitive comparison counts, too. Job hunting is said to rise by 16% after reunions or even after employees have large social gatherings with their peers because they begin comparing their success to others. And of course, younger generations are more inclined to look elsewhere – only “three in 10 [millennials] are emotionally and behaviourally connected to their job and company.”

On top of that, we know that being valued (and being reminded about it), having workplace friendships and having a sense of autonomy all add to the picture, too. 

Lack of career growth and development 

One of the most common reasons employees opt to depart from a company is due to the feeling of stagnation. When they perceive limited opportunities for advancement or skill development, they seek greener pastures elsewhere. In fact, 68% of employees have admitted to changing jobs because of a lack of learning and development opportunities - so if employees don’t grow, they go. 

It’s clear that companies need to invest in training and development programmes that allow employees opportunities to acquire new skills, attend workshops or pursue certifications to demonstrate a commitment to their professional growth. This not only benefits employees but it also majorly enhances the company’s skill pool, allowing you to stay a head of the competition. 

Personal reasons 

Nobody can control when life will throw a curve ball at you which could result in a change of job role. Employees may decide to leave their jobs for various personal reasons, which can range from family-related matters and educational pursuits to health-related reasons. While these factors are often beyond the control of any employer, having a solid employee retention strategy that can be implemented can show empathy and keep your valued workers. 

Embracing remote work or flexible schedules provides space to deal with personal issues that crop up and can make your team feel valued and improve their overall work/life balance. Not doing so, can cost you valuable talent in the long run. 

As the world of work evolves, how can you stay competitive?

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Younger generations are more inclined to look elsewhere – only “three in 10 [millennials] are emotionally and behaviourally connected to their job and company.”

How to retain staff: 10 employee retention strategies to try

Learning how to retain employees and what actions you need to take in your business is the first step toward success. Here are a handful of talent retention strategies to keep your workforce feeling valued, engaged, and motivated.

1. Do 'staying speeches'

There’s a reason you feel most loved on your last day in the office. Leaving speeches tend to be packed with compliments and kind words. Our achievements are glorified, and we’re told just how much we’re going to be missed – sometimes to the extent that we begin doubting our decision to go. Consider making a habit of ‘staying speeches’ on anniversaries that emulate the confidence boost of a leaving speech.

2. Encourage workplace friendships

Studies suggest that workplace friendships play a pivotal role in maintaining employee engagement. In fact, 70% of employees believe that workplace friendships are the most crucial secret to a happy working life. And on the flip side, the absence of social support can lead to loneliness – and eventually – burnout, putting employees at a higher risk of looking somewhere new.

3. Constantly talk about career progression

Your high-performing employees are likely to be ambitious. And considering career progression is among the top reasons employees look for new roles, it’s imperative to create a safe space where nothing is taboo – salary reviews, promotions, and responsibility remits need to be supported by open, straightforward conversations that focus on an employee’s value and potential.

4. Provide the freedom to innovate 

For some high-performers, autonomy is everything; whether that’s having the creative freedom to run with an idea or having an innovative lightbulb moment backed. Be cautious of sticking too closely to the status quo – sure, you might have a certain way of doing things, but if a curious (or frustrated) team member suggests an alternative way of working, consider entertaining it with open arms.

70% of employees believe that workplace friendships are the most crucial secret to a happy working life.

5. Set up a support inbox

Not everyone feels comfortable having difficult conversations. A support inbox that acts as a go-to for any worries or issues faced can help employees feel less alone and supported in times of stress. And if confidentiality is a given, employees can get things off their chests (especially if they don’t have empathetic colleagues to turn to). And if needs be, plans of action can be put in place.

6. Create an honest feedback loop

If your employees are doing a fantastic job, tell them about it. Or better yet, tell the rest of the business about it – and make sure they hear you. If employees feel like their output is undervalued – or even taken for granted – they might be tempted to chase the praise of a new employer or the confidence boost of a shiny new role. But be sure to offer constructive feedback, too. For the employees genuinely keen to develop and grow, make sure you help them do so.

7. Strive for balance and diversity

When it comes to hiring, strive to surround yourself with as many different people from a diverse range of backgrounds as possible. If existing employees can’t see other versions of themselves on the office floor – or on the virtual conference call – they’re more likely to feel marginalised and alone – and you run the risk of losing them. Secondly, in your mission towards balance, think about the full picture; working parents, for example, want flexibility, childcare perks, and continued career progression.

Flexibility is likely to form the crux of our future working lives. As we discovered after months of working from home, different people need different environments and different routines to thrive.

8. Make wellbeing the norm

There’s been a shift in recent years where the responsibility of employee wellbeing no longer sits with the employees themselves but with their employer. Stress and burnout are huge risk factors for staff turnover, so it’s crucial you devise a comprehensive wellbeing programme, listen closely when employees are trying to push back and make it okay to talk about mental health.

9. Offer flexibility 

Flexibility is likely to form the crux of our future working lives. As we discovered after months of working from home, different people need different environments and different routines to thrive.

The discussion isn’t exclusive to whether people should WFH or be in the office – it extends to whether people want to work closer to home, the hours they want to work and the types of environments they want to be in.

10. Invest in your office space 

As flash findings from our second (Y)OUR SPACE report have shown, 90% of global businesses surveyed by Knight Frank view office space as a strategic device. It has the power to attract and retain top talent, support your well-being initiatives, increase collaboration, and reaffirm your corporate image.

Employees want to work in cool offices that are rich in amenities and perks – so in today’s world of work, you need to stand out. An office that matches your corporate ethos and is designed to nurture your teams will create the healthiest and most engaged workforce.

Why Your Office is the Secret Weapon in Retention  

In today's workplace, office spaces are more than physical locations; they actively impact employee satisfaction and retention. Modern workspaces, designed for comfort, collaboration, and well-being, profoundly influence overall business success.

Knight Frank's flexible office spaces prioritize comfort and well-being through ergonomic design and natural light, fostering motivation. They facilitate collaboration and connectivity, where employees seamlessly work together. Furthermore, these spaces offer flexibility, support work-life balance, and provide amenities and services beyond the physical workspace, enhancing the overall employee experience. By aligning the workspace with a company's culture and values, Knight Frank ensures employees experience a sense of belonging, reinforcing their commitment to the organization.

Additionally, Knight Frank's service and managed office options provide the flexibility needed to meet the demands of modern working styles, allowing you to focus on running your business effectively.

Wrapping Up: The Future of Employee Retention 

As we chart a course into the future, it’s clear that the landscape of employee expectations is evolving at a rapid pace. What employees seek in their workplace today may differ tomorrow, meaning companies must remain agile and forward-thinking to retain their talent effectively. Essential to meeting these modern demands is the continuous adaptation of office spaces. 

Employees now expect more than just a place to work, they desire environments that cultivate innovation, collaboration, and well-being. And the future of employee retention relies on offices that not only meet but exceed these expectations. That’s why Knight Frank positions itself as your partner in creating workspaces that inspire, engage and, most importantly, retain the talent driving your organisation forward. Our innovative solutions for flexible spaces, supported by a spectrum of internal services, are designed to keep your workspace in harmony with the evolving needs and aspirations of your employees. So, in a world where talent retention is paramount, Knight Frank is ready to help shape the future of your workplace.