How to improve talent retention has quietly become one of the toughest challenges for businesses right now. It’s no longer enough to just find good people; you’ve got to find ways to keep them. And in this rapidly changing and uncertain world, that’s not always easy.
That’s the reality for many HR leaders I talk to.
Why Retention Matters More Than Ever
Back in the day, I remember all the talk was of the ‘psychological contract’ between employer and employee. It was a step on the ‘social contract’ but it was still fundamentally based on the premise that if an employer looked after its staff, they would work hard and stay.
By ‘looking after’, we were really talking about a reasonable wage, a few other other benefits including some training and maybe some promotion opportunities.
How that has all changed…
Now, employees are looking for something different; not vague ‘promises,’ but real vision, purpose and values. Opportunities to grow, learn and have some control over how they work. And in my own experience, it’s true of all generation, not just Gen Z.
Look at the facts: according to the latest LinkedIn report, 83% of employees say they’d stay longer if their employer invested in their career development. And when you consider the cost of losing someone (which is now one to two times their annual salary depening on role and seniority, according to BrightHR) it’s clear that retention isn’t just a nice-to-have. It’s a business issue.
What’s Changed?
There are a few big shifts:
- Flexibility is expected. Remote and hybrid work aren’t perks anymore. They’re just how work happens now.
- Skills need constant updating. Technology changes quickly and employees need to keep up, or they’ll feel stuck.
- Career growth matters. People want to see a future with their employer, not just a monthly salary.
- Internal movement keeps people engaged. If they can’t move sideways or up within your business, they’ll look elsewhere.
Why Losing People Hurts
Losing employees isn’t just about numbers on the P&L.
It disrupts teams, slows down projects and can hurt morale. More importantly, it affects the culture and how people feel about your company.
So, How Can You Improve Employee Retention?
There’s no silver bullet, but these steps make a real difference:
Invest in Career Development
Help your people build skills and plan their next move—whether that’s up, sideways, or deeper into their role. Career coaching can be a powerful tool here.
Create a Learning Culture
Make training accessible and relevant. Help people keep pace with change and grow beyond their current jobs.
Offer Flexibility and Autonomy
Trust your people to manage their work. If you don’t, they’ll look for places that do.
Be Clear About What You Stand For
Your organisation’s values should be more than words on a wall. People want to work somewhere that feels authentic.
Build an Inclusive Environment
Make sure everyone feels safe, valued, and able to contribute.
Recognise Contributions Regularly
A little appreciation goes a long way. Don’t wait for annual reviews.
Listen and Take Action
Ask for feedback and, crucially, act on it. Nothing kills engagement like being ignored.
In Summary
Retention in 2025 isn’t about fancy perks or buzzwords. It’s about understanding what your people actually need: clear growth opportunities, flexibility, respect and honest communication.
If you’re not addressing these, you risk losing some of your best talent.
For early and mid-career employees especially, structured support like career coaching can make a real difference.
At Chiumento, we’ve developed our Career Directions programme to help individuals clarify their goals, explore opportunities and take control of their career journey within the business they’re already part of.
Helping people grow in the right direction isn’t about “fixing” them. It’s about creating pathways that keep talent engaged, motivated and ready for what’s next.
Because when your people feel supported and see a future with you, retention becomes far more achievable.
Get in touch with us today to find out how Career Navigator can transform how you develop, engage and retain top talent.
How to Improve Employee Retention FAQs
What is retaining talent?
Retaining talent means keeping valuable employees engaged, motivated, and committed to your organisation over the long term. It involves creating an environment where people feel supported, see opportunities for growth, and believe in the purpose of their work. Effective retention reduces turnover, protects institutional knowledge, and builds a stronger, more stable workforce.
What are the three R’s of retaining talent?
The three R’s commonly associated with talent retention are Recognition, Reward, and Respect:
- Recognition: Acknowledging contributions and celebrating successes.
- Reward: Providing competitive pay, benefits, and growth opportunities.
- Respect: Fostering a culture of trust, inclusion, and open communication.
Together, these elements create a foundation for keeping top talent engaged.
How can I improve my talent retention?
Begin by investing in structured career development. Show employees that there’s a future within your organisation by offering clear growth pathways, supporting internal mobility, and prioritising continuous learning. Listening to your employees’ needs and aligning your culture and benefits accordingly is key. Retention requires intentional effort and understanding.
How can I measure the success of my retention strategies?
Measuring retention success involves tracking key metrics such as employee turnover rate, voluntary vs. involuntary departures, average tenure, and employee engagement scores. Exit interviews and stay interviews provide qualitative insights into why employees leave or stay. Additionally, monitoring internal mobility rates and promotion patterns can reveal if growth opportunities are effective. Using a combination of these data points helps HR leaders continuously refine and improve retention strategies.
Mike joined Chiumento in 2011 with deep expertise in HR consulting, including talent attraction, employer branding, and career transition. As Managing Director, he is dedicated to client success and oversees personalised solutions across sectors. Mike also serves as Global Chair of Arbora Careers Firms, an international network of outplacement and coaching companies.