The last 5 years have radically changed both work culture and employee expectations.
The average cost to hire in 2025 is complex. However, employers can expect to spend 30% of the incoming employee’s annual salary on hiring costs. This includes tangible costs such as recruitment fees, time costs, lost productivity, training, and onboarding.
But then there are the costs you can’t see, such as the ‘domino-effect’ turnover of others, cultural disruption and damaged (or lost) client relationships.
A shaky economic landscape where bottom lines are suffering makes employee retention more important.
Here are our 5 top tips for retaining your employees in 2025.
Flexible working models.
The candidates we speak to care about how they’ll work, not just where they’ll work. It’s safe to assume that in-place employees care about the same things.
Flexible working goes beyond hybrid models. It includes options such as compressed weeks, 4-day working and asynchronous work hours.
Employees want autonomy over schedules and location. They want employers who are less concerned with hours and more concerned with outcomes.
Why flexibility works.
Employer flexibility shows trust, supports work-life balance, and boosts loyalty — especially for parents, carers, and neurodiverse employees.
Growth and career mapping.
People leave when they feel stuck and can’t see a route for progression. Employers should take time to offer personalised development plans that map out a career trajectory.
Offering micro learning opportunities alongside mentorship creates a system where employees are consistently challenged and then supported as they practice new skills.
Employees are looking for access to projects or assignments that stretch their comfort zone.
They will then feel better equipped to apply for promotions and more senior roles. Internal mobility and promotion are visible ways employers can demonstrate they care about career progression and development.
Why growth opportunities work.
Providing clear pathways and career support reduces the need to look elsewhere.
Human-centred leadership and culture.
Employees want to feel heard, seen and supported.
They are looking for employers that prioritise their well-being. Organisations should go beyond policy and create action practices that promote psychological safety and inclusion.
Training line managers in empathy, emotional intelligence and active listening will help employees to feel valued and listened to.
Conversations around mental health should be normalised and backed up by benefits such as wellness days, charity or volunteering days and access to mental health support if needed.
Why human-centred approaches work.
Culture is critical. People stay where they feel valued, not just productive.
Fair and transparent compensation.
Salary is not the be-all and end-all, but it still matters.
Employees want clear salary banding, pay equity reviews, and a transparent bonus system. If you are running a small SME and can’t meet regional salary expectations, try rewarding your employees in other ways that still have value.
For example, personal days, child-care support, and cycle to work schemes are all ways to cut costs for your team without increasing salaries.
Sometimes, it isn’t about money at all. It just comes down to recognition for a job well done. Consider implementing a real-time recognition platform that makes individual achievements visible.
Are you an SME business owner? Read how you can compete for talent with big business here.
Why transparent reward works.
Competitive, transparent rewards show respect and build trust.
Employee voice and co-creation.
In 2025, the most successful businesses are built with their people.
Today, employees want a voice in how their organisation is being run.
Employees want to be involved in policy decisions such as remote working or dress code. Smart employers might go further by creating employee resource groups (ERGs) for diverse voices.
Employers can resolve small issues before they become big problems by implementing regular pulse surveys or feedback loops.
Offering updates on how they have actioned employee suggestions, or why they can’t, goes a long way to ensure employees feel they are shaping the company they work for.
Why employee voice works.
When employees shape the culture, they’re more invested in it.
In Sum.
Businesses can save a lot of money by ensuring low staff turnover.
Businesses should offer fair and transparent salaries for meaningful, challenging and progressive work to keep employee retention high.
People want to stay where they feel valued and not just a cog in a wheel. Offering employees the opportunity to shape organisational policy around working models creates buy-in and a culture of co-ownership.
Reward doesn’t have to be monetary – saying thank-you for a job well done is meaningful day to day.
Was this useful? Read our tips to retain your MVPs here.
