--- title: Five Effective Employee Retention Strategies description: According to the Bureau of Labor Statistics, more than 3.5M Americans quit their jobs every month of 2018. Here are five employee retention strategies. image: https://blog.axcethr.com/hubfs/oct%2018%20blog%20image.webp --- - [Client Portal](https://www.axcethr.com/client-services/) - [Employee Login](https://www.axcethr.com/client-services/) [![AxcetHR Solutions Blog](https://blog.axcethr.com/hubfs/AxcetHR2021%20Blog/axcethr_logo_white%20(1).png)](https://www.axcethr.com/) - [About Us](https://www.axcethr.com/about-us/) - [Corporate Philantropy](https://www.axcethr.com/about-us/corporate-philanthropy/) - [Meet the Team](https://www.axcethr.com/about-us/meet-the-team/) - [Values and Culture](https://www.axcethr.com/about-us/values-and-culture/) - [Kansas PEO](https://www.axcethr.com/about-us/kansas-peo/) - [Missouri PEO](https://www.axcethr.com/about-us/missouri-peo/) - [Careers](https://axcethrsolutions.prismhr-hire.com/) - [Why Axcet](https://www.axcethr.com/why-axcet/) - [Why Choose Axcet?](https://www.axcethr.com/why-axcet/) - [About PEOs](https://www.axcethr.com/why-axcet/about-peos/) - 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[Employee Benefits](https://blog.axcethr.com/topic/employee-benefits) - [All about COVID-19 in the Workplace](https://blog.axcethr.com/topic/covid19) - [Kansas & Missouri HR News](https://blog.axcethr.com/topic/kansas-and-missouri-hr-news) - [Kansas City Interest News](https://blog.axcethr.com/topic/kansas-city-interest-news) - [PEO/HRO](https://blog.axcethr.com/topic/peo) - Choose Topic: - [Human Resources](https://blog.axcethr.com/topic/human-resources) - Payroll Administrations - [Employee Safety & Risk Management](https://blog.axcethr.com/topic/employee-safety-risk-management) - [Employee Benefits](https://blog.axcethr.com/topic/employee-benefits) - [PEO](https://blog.axcethr.com/topic/peo) # Five Effective Employee Retention Strategies By [Jeanette Coleman, SPHR & SHRM-SCP](https://blog.axcethr.com/author/jeanette-coleman) on [Oct 18, 2019](https://blog.axcethr.com/five-effective-employee-retention-strategies) 4 min read [0 comment(s)](https://blog.axcethr.com/five-effective-employee-retention-strategies#comments-listing) Share this: - - - - [whatsapp://send?text=https://blog.axcethr.com/five-effective-employee-retention-strategies](whatsapp://send?text=https://blog.axcethr.com/five-effective-employee-retention-strategies) - [mailto:?subject=Five%20Effective%20Employee%20Retention%20Strategies&body=https://blog.axcethr.com/five-effective-employee-retention-strategies](mailto:?subject=Five%20Effective%20Employee%20Retention%20Strategies&body=https://blog.axcethr.com/five-effective-employee-retention-strategies) ![oct 18 blog image](https://blog.axcethr.com/hs-fs/hubfs/oct%2018%20blog%20image.webp?width=840&name=oct%2018%20blog%20image.webp) Employee retention is arguably one of the most critical strategies for small business success, especially in today’s historically tight labor market. The unemployment rate nationally has hovered at or below 4% since April 2018. That makes employees more likely to seek new opportunities – often with the competition – if they are not satisfied in their current positions. According to the Bureau of Labor Statistics, more than [3.5 million Americans quit their jobs every month of 2018](https://www.cnbc.com/2018/12/21/workers-in-2018-quit-their-jobs-to-get-raisesthey-will-next-year-too.html). And, while experts disagree on how much it costs employers to replace a salaried employee, they all agree the number is staggering. Estimates range from between one-half to twice the employee’s annual salary. If you do the math, without even considering the emotional and cultural costs of employee turnover, you’ll agree that spending fewer resources to retain employees than you would to replace them is one of the smartest things you can do as a small business owner. Successful employee retention is tantamount to a business finding hundreds of thousands of dollars in new revenue every year. ## Here are the Top Five Ways to Trim Employee Attrition: ### 1. Compensation Pay is still important when it comes to attracting and retaining top employees. Monitor industry compensation standards to ensure your salaries are commensurate with competitors’. Benefits round out the compensation package, and employees expect plenty of them. Consider offering benefits that accrue significant value over time or improve with tenure to help keep employees from quitting and abandoning their progress. Bonus structures, paid time off, stock options, matching retirement plan contributions, workspaces and even title changes all can be designed to improve as employees ascend through the ranks. [![Unique employee benefits offered by progressive organizations in 2019](https://no-cache.hubspot.com/cta/default/2652187/6e2afcf6-be97-4d7b-b582-c9896be343bd.png)](https://cta-redirect.hubspot.com/cta/redirect/2652187/6e2afcf6-be97-4d7b-b582-c9896be343bd) ### 2. Onboarding Onboarding and employee retention go hand-in-hand. When you use a structured process to introduce new employees to your company, they feel more comfortable, connected and engaged at work – all factors that contribute to employee satisfaction. Properly onboarding new employees sets them up for success on the job. Onboarding best practices start during recruitment, when you should begin describing your company’s culture. And, while the first day is important, and you should take every opportunity then to make a new employee feel welcome, onboarding should last at least 90 days. It may take even longer for your newest staffer to understand where he or she fits into the big picture as well as the smaller details like how certain software programs work. Implement procedures that allow all employees to provide and receive regular feedback, and encourage interaction with colleagues – throughout their tenure, but especially during the first several months. Employees who feel valued and develop good relationships with colleagues are far less likely to leave. [![Onboarding for Success](https://no-cache.hubspot.com/cta/default/2652187/6c53f968-b443-48be-a099-a5375ca6d0d1.png)](https://cta-redirect.hubspot.com/cta/redirect/2652187/6c53f968-b443-48be-a099-a5375ca6d0d1) ### 3. Flexibility Work-life balance remains a top concern for many employees. In fact, employees often automatically expect the option of flexible work schedules in today’s tight and technologically advanced labor market. Allowing employees to telecommute part of the time, completely unplug during weekends or vacations and otherwise build flexibility into their schedules usually pays off for employers in the long run. When employees have fulfilling personal lives, they are happier at work. A [2018 survey](http://rh-us.mediaroom.com/2018-08-06-Nashville-Workers-Give-Themselves-Poor-Marks-For-Work-Life-Balance-Chicago-Ranks-Highest-According-To-Robert-Half-Survey) linked happy workers with higher productivity and increased loyalty, concluding that employees who achieved symmetry between work and home were twice as likely to be happy on the job compared to those individuals who did not have work-life balance. ### 4. Recognition Sometimes a simple “thank-you” goes a long way. Employees are human beings, and we all want to feel appreciated. Recognizing a job well done, repeatedly, does not cost a lot of money, but it makes a big impact with employees. It makes them feel valued. A recent [Gallup poll](https://www.gallup.com/workplace/236441/employee-recognition-low-cost-high-impact.aspx) found that employees who do not feel adequately recognized are twice as likely to say they'll quit in the next year. Regular workplace recognition is a significant source of employee motivation, engagement, productivity, loyalty and retention – and those benefits extend to the entire company, not just the individual receiving the praise. [![New call-to-action](https://no-cache.hubspot.com/cta/default/2652187/a27222b4-2c8b-4fd1-bb3d-cd7231f5c71c.png)](https://cta-redirect.hubspot.com/cta/redirect/2652187/a27222b4-2c8b-4fd1-bb3d-cd7231f5c71c) ### 5. Employee Development Providing employees with regular, personalized professional development opportunities reaps benefits similar to those created by employee recognition activities. Employees who use their strongest abilities on the job are more self-confident and likely to feel a sense of pride and accomplishment. Employees want to continue learning throughout their careers. So if they do not have the opportunity to further develop and grow their skills at your company, job satisfaction levels will suffer. That includes advancement opportunities. If they cannot see a path to continued growth, they are likely to look elsewhere for career development and promotions. Keep the lines of communication open so you understand employees’ professional goals. Employers who help employees achieve their on-the-job dreams through a clearly defined path enjoy higher employee retention rates. If you weave these five strategies into the fabric of your company culture, you will reduce turnover and retain top performers. Historically low unemployment rates make finding good talent increasingly difficult, so it’s important that [human resources teams](https://www.axcethr.com/services/human-resources/recruitment-and-retention/) and department leads do everything they can to manage their employees in a way that trims attrition and fuels everyone’s success. [![Talent management consulting for small businesses by Axcet HR Solutions](https://no-cache.hubspot.com/cta/default/2652187/interactive-189247610683.png)](https://blog.axcethr.com/hs/cta/wi/redirect?encryptedPayload=AVxigLIB70tadvTIkKHXciwHkgrlPyUgp6df5LYCh26A%2FINVke%2Fho3QElzH5EhIaA%2FZMB3VSeoJXn6LSHEgTSnK2ju8druAHxJ2rldrbbZ3%2FRDqJSDwzlpZWars6QKU8wyCoMx4Ifao7V79SXvskL3go1kBvmps7b23x1hSnJUfii9nExgW8fRXhFbFpqrZ0wHPRQvOFVIUsDF%2Fvh6LCpEh0X3zGYL3vdXVm0KhAZcj588y7IxhE1y%2BJQIPqgX86S6uW83usPguNc0a9FQBB%2BGTx%2BZLuuT9ubnwSdxo%3D&webInteractiveContentId=189247610683&portalId=2652187) ## **Turn Strategy into Staying Power** Implementing effective employee retention strategies requires more than good intentions—it takes thoughtful planning and expert execution. At Axcet HR Solutions, our HR consultants help small and mid-sized businesses design and implement retention programs that align with company goals and employee needs, creating workplaces where great talent wants to stay. [Discover how Axcet’s Talent Management Consulting Services](https://www.axcethr.com/services/human-resources/talent-management-consulting/) can help you reduce turnover and build a more committed team. [![New call-to-action](https://no-cache.hubspot.com/cta/default/2652187/9758b087-ec74-438d-a7b6-270ed3cca6da.png)](https://cta-redirect.hubspot.com/cta/redirect/2652187/9758b087-ec74-438d-a7b6-270ed3cca6da) [![Jeanette Coleman, SPHR & SHRM-SCP](https://blog.axcethr.com/hs-fs/hubfs/Jeanette-04.jpg?width=80&height=80&name=Jeanette-04.jpg)](https://blog.axcethr.com/author/jeanette-coleman) Written by #### [Jeanette Coleman, SPHR & SHRM-SCP](https://blog.axcethr.com/author/jeanette-coleman) Jeanette Coleman, SPHR, SHRM-SCP, is the Director of Human Resources at Axcet HR Solutions, where she has contributed her expertise for over 21 years. As a leader in the HR industry, she holds advanced certifications as a Senior Professional in Human Resources (SPHR) and SHRM-Senior Certified Professional (SHRM-SCP). Jeanette oversees HR strategy and operations, ensuring Axcet delivers exceptional HR services that help small and mid-sized businesses stay compliant and grow. With a Master’s degree in Human Resource Management from Keller Graduate School and a Bachelor of Science in Business Administration from Kansas State University, Jeanette is well-equipped to lead and support clients in navigating complex HR challenges. Throughout her 15-year tenure as Director of Human Resources, she has been instrumental in positioning Axcet as the Midwest’s largest and premier Professional Employer Organization (PEO). Her previous roles at Axcet include Director of Employee Benefits and Senior HR Consultant, where she gained extensive experience in HR outsourcing, and employee risk management. Jeanette’s expertise has been recognized through industry and regional publications. She co-authored the article “High-Touch in the Age of High-Tech: How PEOs Can Embrace AI Without Losing Their Humanity” (https://peoinsider.org/articles/high-touch-in-the-age-of-high-tech-how-peos-can-embrace-ai-without-losing-their-humanity/) for PEO Insider (March 2026), alongside Jo McClure, and was featured in Ingram’s Magazine in a Q&A (https://ingrams.com/article/qa-with-jeanette-coleman/) discussing generational change, technology, and workplace culture. These contributions reflect her perspective on balancing innovation with the human side of HR. Jeanette’s leadership reflects her deep commitment to helping businesses thrive through strategic, compliance-driven HR solutions. Through her writing, she shares insights on HR strategy, compliance, and best practices to help employers confidently manage their workforce. Published in: PEO Insider and Ingram's Read more [View all posts →](https://blog.axcethr.com/author/jeanette-coleman) ### Get HR Updates ### Table of Contents ### Related Resources - [services Human Resources](https://www.axcethr.com/services/human-resources/) - [services recruitment & retention](https://www.axcethr.com/services/human-resources/recruitment-and-retention/) #### [How HR Tech Can Improve Your Business’ Open Enrollment Experience ![How HR Tech Can Improve Your Business’ Open Enrollment Experience](https://blog.axcethr.com/hubfs/Oct%2021%20Blog%20Image%202.webp)](https://blog.axcethr.com/how-hr-tech-can-improve-your-business-open-enrollment-experience) #### [![Terminating an Employee Without Warning; When to Skip Progressive Discipline](https://blog.axcethr.com/hubfs/blog%20image%20oct%2016.png) Terminating an Employee Without Warning; When to Skip Progressive Discipline](https://blog.axcethr.com/when-a-warning-isnt-enough-why-employers-skip-progressive-discipline) ## Let us know what you think... ![AxcetHR Blog](https://blog.axcethr.com/hubfs/AxcetHR2021%20Blog/axcethr_logo_white%20(1).png) - [Why Axcet](https://www.axcethr.com/why-axcet/) - [What We Stand For](https://www.axcethr.com/about-us/what-we-stand-for/) - [Expertise](https://www.axcethr.com/expertise/) - [Employee Benefits](https://www.axcethr.com/services/employee-benefits/) - [Human Resources](https://www.axcethr.com/services/human-resources/) - [Payroll Services](https://www.axcethr.com/services/payroll-and-tax-administration-services/) - [Risk Management](https://www.axcethr.com/services/workers-comp-and-employee-safety-risk-management/) - [Meet the Team](https://www.axcethr.com/about-us/meet-the-team/) - [Subscribe to Latest Resources](https://www.axcethr.com/subscribe-to-the-latest-resources/) - [Resource Library](https://www.axcethr.com/expertise/resource-library/) - [\[ Client Portal \]](https://www.axcethr.com/client-services/) - - - - - Search for: Copyright © 2023 Axcet HR Solutions – Kansas City's PEO Since 1988 | [Privacy Policy](https://www.axcethr.com/privacy-policy/) | [Terms and Conditions](https://www.axcethr.com/terms-conditions/) | [**Join our Team – Careers »**](https://axcethrsolutions.prismhr-hire.com/) 10975 Grandview Drive Suite 200, Corporate Woods Building 27, Overland Park, KS 66210 | Call us: 913-383-2999 *The IRS does not endorse any particular For more information on [certified professional employer organizations](https://www.axcethr.com/why-axcet/certified-peo/), go to [www.irs.gov](https://www.irs.gov).* Remove cookies ![](https://dc.ads.linkedin.com/collect/?pid=43031&fmt=gif) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Jeanette Coleman, SPHR & SHRM-SCP", "url" : "https://blog.axcethr.com/author/jeanette-coleman" }, "dateModified" : "2025-05-02T15:27:24.080Z", "datePublished" : "2019-10-18T15:21:06.000Z", "headline" : "Five Effective Employee Retention Strategies", "image" : [ "https://blog.axcethr.com/hubfs/oct%2018%20blog%20image.webp" ], "mainEntityOfPage" : { "@id" : "https://blog.axcethr.com/five-effective-employee-retention-strategies", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.axcethr.com/hubfs/_logo_axcethr_primary.png" }, "name" : "Axcet HR Solutions" } } ``` ```json { "@context" : "https://schema.org", "@id" : "https://www.axcethr.com/#organization", "@type" : "Organization", "address" : { "@type" : "PostalAddress", "addressCountry" : "US", "addressLocality" : "Kansas City", "addressRegion" : "MO" }, "aggregateRating" : { "@type" : "AggregateRating", "bestRating" : "5", "ratingValue" : "5", "reviewCount" : "100" }, "areaServed" : { "@type" : "Country", "name" : "United States" }, "award" : [ "IRS Certified Professional Employer Organization (CPEO)", "Award-Winning HR Solutions Provider", "SHRM Certified HR Professionals", "HRCI Certified HR Professionals" ], "contactPoint" : { "@type" : "ContactPoint", "areaServed" : "US", "availableLanguage" : "English", "contactType" : "Customer Service" }, "description" : "Award-winning Professional Employer Organization (PEO) providing comprehensive HR solutions, payroll services, employee benefits, and risk management to small and mid-sized businesses. 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The unemployment rate nationally has hovered at or below 4% since April 2018. That makes employees more likely to seek new opportunities – often with the competition – if they are not satisfied in their current positions. According to the Bureau of Labor Statistics, more than 3.5 million Americans quit their jobs every month of 2018. And, while experts disagree on how much it costs employers to replace a salaried employee, they all agree the number is staggering. Estimates range from between one-half to twice the employee’s annual salary. If you do the math, without even considering the emotional and cultural costs of employee turnover, you’ll agree that spending fewer resources to retain employees than you would to replace them is one of the smartest things you can do as a small business owner. Successful employee retention is tantamount to a business finding hundreds of thousands of dollars in new revenue every year. Here are the Top Five Ways to Trim Employee Attrition: 1. Compensation Pay is still important when it comes to attracting and retaining top employees. Monitor industry compensation standards to ensure your salaries are commensurate with competitors’. Benefits round out the compensation package, and employees expect plenty of them. Consider offering benefits that accrue significant value over time or improve with tenure to help keep employees from quitting and abandoning their progress. Bonus structures, paid time off, stock options, matching retirement plan contributions, workspaces and even title changes all can be designed to improve as employees ascend through the ranks. 2. Onboarding Onboarding and employee retention go hand-in-hand. When you use a structured process to introduce new employees to your company, they feel more comfortable, connected and engaged at work – all factors that contribute to employee satisfaction. Properly onboarding new employees sets them up for success on the job. Onboarding best practices start during recruitment, when you should begin describing your company’s culture. And, while the first day is important, and you should take every opportunity then to make a new employee feel welcome, onboarding should last at least 90 days. It may take even longer for your newest staffer to understand where he or she fits into the big picture as well as the smaller details like how certain software programs work. Implement procedures that allow all employees to provide and receive regular feedback, and encourage interaction with colleagues – throughout their tenure, but especially during the first several months. Employees who feel valued and develop good relationships with colleagues are far less likely to leave. 3. Flexibility Work-life balance remains a top concern for many employees. In fact, employees often automatically expect the option of flexible work schedules in today’s tight and technologically advanced labor market. Allowing employees to telecommute part of the time, completely unplug during weekends or vacations and otherwise build flexibility into their schedules usually pays off for employers in the long run. When employees have fulfilling personal lives, they are happier at work. A 2018 survey linked happy workers with higher productivity and increased loyalty, concluding that employees who achieved symmetry between work and home were twice as likely to be happy on the job compared to those individuals who did not have work-life balance. 4. Recognition Sometimes a simple “thank-you” goes a long way. Employees are human beings, and we all want to feel appreciated. Recognizing a job well done, repeatedly, does not cost a lot of money, but it makes a big impact with employees. It makes them feel valued. A recent Gallup poll found that employees who do not feel adequately recognized are twice as likely to say they'll quit in the next year. Regular workplace recognition is a significant source of employee motivation, engagement, productivity, loyalty and retention – and those benefits extend to the entire company, not just the individual receiving the praise. 5. Employee Development Providing employees with regular, personalized professional development opportunities reaps benefits similar to those created by employee recognition activities. Employees who use their strongest abilities on the job are more self-confident and likely to feel a sense of pride and accomplishment. Employees want to continue learning throughout their careers. So if they do not have the opportunity to further develop and grow their skills at your company, job satisfaction levels will suffer. That includes advancement opportunities. If they cannot see a path to continued growth, they are likely to look elsewhere for career development and promotions. Keep the lines of communication open so you understand employees’ professional goals. Employers who help employees achieve their on-the-job dreams through a clearly defined path enjoy higher employee retention rates. If you weave these five strategies into the fabric of your company culture, you will reduce turnover and retain top performers. Historically low unemployment rates make finding good talent increasingly difficult, so it’s important that human resources teams and department leads do everything they can to manage their employees in a way that trims attrition and fuels everyone’s success. Turn Strategy into Staying Power Implementing effective employee retention strategies requires more than good intentions—it takes thoughtful planning and expert execution. At Axcet HR Solutions, our HR consultants help small and mid-sized businesses design and implement retention programs that align with company goals and employee needs, creating workplaces where great talent wants to stay. Discover how Axcet’s Talent Management Consulting Services can help you reduce turnover and build a more committed team.", "author" : { "@id" : "https://blog.axcethr.com/author/jeanette-coleman#author", "@type" : "Person", "name" : "Jeanette Coleman, SPHR & SHRM-SCP", "url" : "https://blog.axcethr.com/author/jeanette-coleman" }, "dateCreated" : "2019-10-18", "dateModified" : "2025-05-02", "datePublished" : "2019-10-18", "description" : "Employee retention is arguably one of the most critical strategies for small business success, especially in today’s historically tight labor market. The unemployment rate nationally has hovered at or below 4% since April 2018. 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