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6 top tips for improving employee retention

Author: ICAEW

Published: 13 Dec 2023

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High employee turnover and low retention can cause major challenges for an employer. Learn more about how you can improve employee retention as an employer.

1. Understand your employee retention and turnover rates

Before you introduce new initiatives, take time to understand where you are now. Employees leave for different reasons, so analysing your turnover rates and exit interview data can help identify underlying issues affecting morale and satisfaction.

Calculating your annual employee turnover rate allows you to see how you compare with other employers in the sector and identify trends over time. These insights can give you a strong foundation for shaping a targeted, evidence-based retention strategy.

2. Build a clear and realistic employee retention strategy

An effective retention strategy should align with your wider business objectives while focusing on what matters most to your people. That means balancing employee engagement with operation and financial realities.

Rather than relying on isolated activities, take a joined up approach. Your strategy might include development opportunities, flexible working, well-being support and regular feedback – but it should ultimately reflect your organisation’s culture and long‑term goals.

3. Clarify your purpose, goals and values

Employees are more likely to stay when they understand where your organisation is heading and how their role contributes to that journey. A clear purpose and well‑defined goals help employees feel connected to your organisation’s success.

Taking the time to revisit and communicate your purpose, vision and values supports better decision‑making and builds trust. When employees feel seen as individuals – not just job titles – engagement and loyalty are more likely to follow.

4. Put proactive measures in place to prevent burnout

Burnout is a significant risk to both performance and retention. Having a clear plan to support employee well-being can help you maintain morale and reduce the likelihood of employees disengaging or leaving.

Encourage regular breaks, support healthy boundaries outside working hours and create opportunities for open conversations. Regular check‑ins give employees the space to raise concerns early – particularly important if your teams work remotely or across different locations.

5. Offer flexible working where possible

Flexible working is no longer a “nice to have”. Options such as remote working or hybrid models can play a crucial role in improving work–life balance, productivity and employee satisfaction.

When employees feel trusted to manage their time effectively, they are often more engaged and committed to their employer. Offering flexibility can therefore be a powerful lever in reducing turnover and strengthening retention.

6. Invest in continuous upskilling and reskilling

Employees are more likely to remain with an employer who supports their development. Providing opportunities to upskill and reskill helps employees feel valued while also addressing future skills needs within your organisation.

Structured learning and development programmes can reduce skills gaps, strengthen succession planning and support long‑term business growth. Investing in professional development is not just good for your people – it’s a strategic decision for your organisation.

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Last updated: June 2026