How to retain top talent: 5 tips to improve employee engagement and retention

You wrapped up the hiring process and found the perfect candidate to fill your open role—they're proactive, hardworking, and a valuable addition to your organization. But the second part of building a productive team? Learning how to improve employee engagement and retention.

Employee retention is an ongoing process and should be a priority for employers who value their workforce. Continue reading to learn more about how you can reduce your turnover rate and keep your all-star employees engaged and loyal to your company.

Offer competitive salaries

Despite the evolving nature of the workplace, salary remains the top priority for employees. In Michael Page’s Talent Trends survey, 54% of respondents said salary is essential when considering accepting a new role.  

Considering the weight that salary carries in talent acquisition and retention, understanding how to craft can’t-resist offers is critical. A strong offer achieves two goals: attracting top talent with valuable expertise and ensuring your competition doesn’t snatch them up before you can.  

When salary benchmarking, be sure to consider the employee's role, location, and experience level for the most accurate data. And to make your offers more appealing beyond base compensation, additional benefits, such as bonuses, stock options, and paid time off, make a big difference in an employee’s decision to stay with your organization.  

Explore salary and market trends in your industry to craft competitive offers

Recognition of excellent work

Everyone wants to feel like their work makes a difference. Taking the time to acknowledge your employees’ contributions—both big and small—can go a long way in helping them feel valued and appreciated.  

Some ways you can recognize top performers include offering a raise, bonus, or promotion. However, compensation rewards are not always feasible, especially on a regular basis. In that case, non-financial gestures can also show you value your hard workers. Some ideas include:  

• A feature on social media
• Additional PTO
• More flexibility
• Paid volunteer time
• A fun social activity

When brainstorming ideas, be sure to consider the individual and what would have the strongest impact.

Foster an inclusive company culture

You’ll have greater success retaining your best workers if they feel welcome, appreciated, and represented in your company. In our recent survey, only 32% of professionals believe their workplace is inclusive, with just over a fifth (22%) think their senior leadership is diverse.

While salary and recognition are essential, retaining your top performers also means creating a space that allows everyone to thrive. According to data from the CNBC/SurveyMonkey Workforce Happiness Index, 78% of employees say it’s important to work at a company that makes diversity and inclusion a priority.  

Bearing that in mind, it’s worthwhile incorporating more inclusive practices, such as modeling inclusive language, integrating inclusivity into your organization’s core values, and observing a wide range of holidays.

Related: Learn how to promote diversity and inclusion in the workplace.

Invest in employee development  

When employees feel as though they have a clear career path within your organization, they’re more than likely to stay put. In fact, a Work Institute survey found that a lack of professional development opportunities is the top reason employees quit their jobs, reinforcing its importance in retention.  

Examples of career development include:  

• Formal goal setting: Encourage employees to set goals and realistic steps to achieve them to provide direction and prevent stagnation, boosting engagement.
• Mentorship programs: Pairing employees who show strong potential with more experienced colleagues can be a great way to support their growth.  
• Training courses: Provide your staff with opportunities to develop their skills and build their knowledge to contribute to their professional advancement.  
• Internal mobility: Hiring existing employees for more senior positions within your company shows you invest in your workforce.  

Collect data straight from the source

The most effective way to improve retention among your top employees is to ask them what they most value. Workers’ priorities are constantly changing, especially from one individual to another. Our Talent Trends survey reinforces this, with 49% of respondents saying they would turn down a promotion to protect their well-being.  

Making the effort to learn more about employee preferences, whether through anonymous surveys, open communication, or one-on-one conversations, and establishing measures to achieve them, is an effective strategy to help companies keep all-star employees.

Refine your hiring process

The first step to improving your employee engagement and retention strategies is to hire the right workers for your team.  

At Michael Page, our specialized recruiters source and secure quality workers that best align with your organization. Submit a job description to access our large network of candidates or request a call back to start a conversation about what you need.