It’s every business owner’s nightmare. Having employees leave the organization mid-way. And this problem is more common than you think. As per a report, about half of the employees leave the organization within two years. Hiring managers are, thus, constantly caught in the process of hiring new employees.

The cost of losing an employee, too, is high. As per studies, it costs about six to nine months of salary to replace an employee. So how do business owners avoid employees leaving the organization? Read on to know how business owners can improve employee retention.

Employee Onboarding and Orientation

The employee should feel warm and welcoming right from the start. They should feel like they are a part of the organization from day one. Thus, business owners should make sure that the onboarding and orientation process recognizes and values the employee.

The onboarding process should teach the recruited employee about their job roles and responsibilities and educate them about the organization’s culture and how they can contribute to the organization’s growth. The training provided at the start of the tenure can set the tone of how the employee will perform and how long they will remain.

Recognize and Appreciate Their Hard Work

Employees feel valued and work with even more dedication and focus if their current efforts are recognized, valued, and appreciated by business owners. One way of doing this is by awarding their employees trophies, cash bonuses, or both during annual functions.

You can shop for employee gifts at local gift shops that have customized gifts that you can gift your employees to make them feel extra special. This, in return, will improve employee morale, boost confidence, and stop the employee from leaving the organization.

Have Open Communication

Having open, transparent, and clear communication with your employees can foster a sense of community and a shared purpose. Employees are exactly aware of their job roles and responsibilities. This helps prevent any misfortune incident that can happen due to lack of communication. Thus, there is a higher chance of employees continuing to work in the organization.

employees smiling at laptop presentation

Pay Well

One of the major reasons why employees prefer working at an organization is because of the salary offered. Similarly, salary is also the reason why many employees leave the organization if they are paid less. Employees usually get a ten to thirty percent salary increase if they switch organizations. Thus, make sure that your employees are paid well and are provided competitive salary increments regularly.

Similarly, please provide them with attractive perks and facilities, such as increased pay for additional work hours, daily lunch, and free coffee to keep employees happy and stop them from leaving the organization.

Hold Training and Development Programs

No matter how long the employee has been associated with the organization, training and development programs are necessary. They help provide opportunities to employees to upskill and grow professionally. This, in turn, will reduce instances of employees leaving the organization as they get to learn new and relevant skills at the organization itself without paying from their own pockets.

Some organizations even pay their employee’s travel, stay, and other related expenses for attending training and development programs, seminars, and conferences. Similarly, if you want your employees to stay at your organization, regularly arrange training programs for them.

Provide Positive Feedback

Instead of giving harsh and negative feedback to your employees, provide positive and constructive feedback. This motivates the employees and gives them the focus and determination to give their best work. For instance, instead of criticizing employees for being late to the office, ask them why they were late and search for solutions on how they can report to the office on time.

Encourage Creativity

Many organizations say they value creativity, but it is hardly the case. By encouraging creativity, you allow employees to offer their insights and opinions on how the work can be carried out to bring out the best results. It makes the employee feel valued, and they prefer working at such organizations. Some ways you can encourage employee creativity at the workplace are:

  • Offering rewards for their efforts and ideas.
  • Setting up innovative teams to come up with multiple ways of approaching a task at hand.
  • Hiring a variety of people with different creativity
  • Creating a fun environment where creativity and spontaneity can occur.


The methods mentioned above will help retain employees at the organization for an extended period. This will help improve collaboration, creativity, and overall productivity. It also helps reduce costs associated with employee onboarding, training, and other related costs.

Scroll to Top