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One of the biggest challenges any organization faces is keeping their employees, more so the good and deserving ones. When an employee leaves, the management is left with the task to look for a replacement within a short period, as well as the responsibility to manage its impact on the rest of the team. When a team member resigns, people notice; and inevitably, it will make the others think whether it would be high time for them to go, too. This is why effective employee retention must be high on the list of the management’s priorities. Here are a few things organizations can consider in forming a good employee retention strategy.

Employee Compensation

Today’s competitive labor market requires organizations to offer potential hires attractive compensation packages, which include the salaries, benefits, health plans, paid time off, retirement plans, and allowances, among others. The Fair Labor Standards Act (FLSA) prescribes standards for wages and overtime pay. Every state has a workers’ compensation program that protects the interests of workers who are injured or become ill while at work, as well as their family and employers. Employers must make sure that their compensation package is, first and foremost, in line with the mandates of the law.

Work-Life Balance

Employees value a healthy work-life balance in the company they’re in. Burnout is one major reason for employees to quit, and sometimes it only takes some flexibility on the employer’s end to address this problem. If overtime is necessary, employers must make sure that they comply with the law-mandated overtime pay, and it will also help to give the employees the option to come in late the next day to ensure that they are able to recuperate. Some companies offer flexible schedules and options to work remotely.

Safe and Inclusive Environment

It is of utmost importance that employees feel that their work environment is free from discrimination and threats to their safety. Organizations must be vocal and transparent in their policies on sexual harassment, discrimination, and other sensitive issues in the workplace. Companies must also ensure that the workplace has effective security facilities and protocols and is free from physical hazards.

Rewards and Recognition

Every employee wants to feel appreciated for the work that they do. Team leaders can make it a habit to allow an hour or two every end of the month to recognize those who went the extra mile, met or exceeded targets, and those who made a significant improvement in their performance. The rewards do not need to be expensive, as long as they send the message that the effort and ingenuity of the employee are much appreciated. Furthermore, implementing a rewards and recognition program is found to be effective in minimizing work-related stress.

Training and Development

Employers must also recognize the employees’ desire for growth and learning. As soon as the employees join the organization, the onboarding and orientation session becomes crucial in setting them up for success. For a week or two, they must be given a comprehensive overview as to the culture and goals of the company, as well as the opportunities that await them. It has been found that effective onboarding reduces turnover and increases retention. Aside from their key roles in the organization, they must also be given opportunities to broaden their skill set. Mentoring, coaching, and cross-training are some of the ways in which employees can develop their career within the organization. Companies must make sure that every employee is given these opportunities to keep them from feeling stagnated in their current role.


If you observe illegal and unethical practices at work and/or experience workplace discrimination and harassment, contact us at Hogan Injury for expert legal advice.

None of the content on is legal advice nor is it a replacement for advice from a certified lawyer. Please consult a legal professional for further information.


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