Employee retention strategies: 14 ideas to keep talent

For in-person teams, workplace perks like breakroom snacks or casual Fridays are simple but thoughtful ways to boost the mood and foster connection. But when your staff spans time zones—or even international borders—employee retention depends on something that goes beyond a paycheck.

So, how do you create that kind of work environment, especially when distributed teams and remote work are the new norm? 

In this guide, we’ll explore what drives people to leave and what inspires them to stay. We’ll also share 14 employee retention strategies to help minimize turnover and keep your team engaged and committed—wherever they are.

What is an employee retention strategy?

An employee retention strategy is a set of structured practices and policies designed to help team members thrive in their roles and, in turn, build a lasting, fulfilling career with the company. More than just reducing employee turnover, the goal is to help people feel inspired by their work, aligned with your mission, and confident that they can grow professionally and personally.

Retention strategies touch every part of the employee experience, from compensation and career development to how managers give feedback, acknowledge wins, and create a sense of belonging in day-to-day work. Salary and benefits matter, but so do team morale, job satisfaction, and a sense of shared purpose.

The most effective approaches stem from what people value most: meaningful work, work-life balance, and transparent leadership. When employees feel supported in ways that matter, they’re more likely to stay—and the organization benefits from greater stability and long-term momentum.

Why is employee retention important?

It’s simple: Retaining top performers contributes to your company's long-term health. But retention alone isn’t enough—attracting and retaining top talent means building the kind of workplace where people want to grow.

Here’s a closer look at why employee retention matters: 

Reducing hiring and training costs

Recruiting, onboarding, and training new hires take time and money, often more than leaders realize. According to some estimates, the cost of replacing a single employee is three to four times their salary, especially in specialized or senior roles. And that doesn’t account for lost productivity during the ramp-up period or the added workload on team members while the position remains vacant.

Strong retention reduces the need for constant reactive hiring. When team members stay, people ops and managers can focus on proactive development rather than scrambling to replace talent. It also keeps budgets pointed toward growth, not backfilling.

Supporting long-term business growth and stability

High retention contributes to a sense of stability, both internally and externally. Internally, teams can prioritize strategic goals rather than reacting to constant turnover. Externally, clients and stakeholders see consistency in service delivery and leadership.

Retention also strengthens your reputation as an employer. Team members who feel respected and supported are more likely to advocate for the company—and less likely to leave for marginally better offers.

Maintaining productivity and team morale

When turnover rises, productivity takes a hit. Teams often have to absorb extra work, which can delay projects and increase the risk of burnout. Morale can suffer, too, especially when departures are frequent and teams are stuck in onboarding mode instead of moving forward together.

Preserving institutional knowledge

When experienced employees leave, they take priceless context and insight with them, from client preferences to internal shortcuts and historical decisions.

An effective retention strategy helps protect that knowledge. It facilitates mentorship between seasoned and newer employees and smoother transitions during role changes. For global or remote teams where side-by-side collaboration is rare, holding on to the people who carry that context matters even more.

Why do employees leave?

Turnover doesn’t usually happen out of the blue. Even when a departure feels sudden, it’s often the result of deeper issues that went unresolved. Here are some of the most common reasons people quit their jobs and what they tend to reveal about the employee experience:

• Pay and benefits don’t match expectations: Salary is still one of the top reasons employees walk. Workers consider other offers when compensation lags behind market standards or benefits feel outdated, especially if they already feel undervalued.
• Lack of growth or development: Even the most loyal team members may start to disengage when there’s no clear path forward, whether through new challenges, learning opportunities, or internal mobility.
• Poor management or communication: Feeling unsupported or out of the loop erodes trust over time. Micromanagement, unclear expectations, and a lack of recognition often push people to look for a workplace where they feel heard, respected, and empowered.
• Work-life imbalance and burnout: Long hours, constant pressure, and blurred boundaries can take their toll. Without flexibility and a strong culture of wellness, burnout can build quietly—until it becomes a reason to leave.

14 effective employee retention strategies

There’s no single solution to employee retention, but the best strategies are proactive and people-centered. Below are 14 practical strategies to reduce turnover and strengthen employee engagement in ways that motivate people to stay:

1. Offer competitive compensation

A robust compensation strategy is foundational. Regularly reviewing salary benchmarks, adjusting for inflation, and ensuring equity across roles signals to employees that you genuinely value their time and effort. If raises aren’t possible, other forms of compensation, like stipends or expanded benefits, can still make a difference.

2. Support career growth and experimentation

Retention improves when employees can envision a future at your company. Development plans, cross-training, and internal upskilling opportunities show that growth doesn’t require leaving. Supporting employees with development can help them stay motivated and invested.

3. Create clear paths for internal mobility

When employees can move around the ranks or across teams, whether through formal programs, temporary assignments, or cross-functional projects, it’s easier for them to envision a future at the company. Clear pathways for internal growth help improve employee satisfaction, retain valuable talent, and build a more agile workforce.

4. Structure onboardings and mentorships

Thoughtful onboarding helps new hires settle in and feel supported from day one. Pairing them with a mentor or buddy can build connections, reducing the likelihood of early turnover and boosting long-term confidence.

5. Encourage transparent and open communication

Open communication builds trust and connection. Leaders who explain their decision-making process and invite employee input help keep teams engaged and aligned with company goals.

6. Give regular performance feedback and recognition

Ongoing feedback gives employees a clear sense of direction. Public recognition and peer acknowledgment can reinforce a sense of contribution. Clear goal-setting practices help employees track progress and stay connected to their work.

7. Promote work-life balance

Long hours and unclear boundaries lead to burnout. Encouraging time off, modeling healthy balance from leadership, and normalizing recharge moments support retention by making work sustainable.

8. Build flexibility into work arrangements

Giving employees more control over where and when they work increases their autonomy and satisfaction. Flexibility, whether remote-first, hybrid, or flextime, remains a top priority for today’s workforce.

9. Train managers to lead with empathy and clarity

Managers play a big role in retention. Those who communicate clearly, resolve conflicts, and show empathy help create a culture where employees feel supported and safe, especially in high-growth or remote environments.

10. Prioritize wellness and mental health

Supporting employee well-being means offering more than just traditional benefits. Wellness stipends, mental health resources, and access to therapy services show employees that their emotional and physical health is a priority.

11. Foster an inclusive and purpose-driven company culture

Employees want to feel they belong and that their work supports a larger mission. A culture of fairness, inclusion, and transparency helps create stronger connections between people and the organization.

12. Check in through regular engagement surveys

Frequent, focused engagement surveys offer insight into how employees are feeling. Just as important, acting on feedback shows the company is listening and willing to adapt meaningfully.

13. Offer unique and meaningful benefits

Beyond core benefits like healthcare or paid time off (PTO), unique perks that reflect your team's values, like caregiver support, learning stipends, or home office budgets, can deepen retention and boost morale.

14. Connect everyday work to a larger mission

Employees are more likely to stay when they feel their work matters. Helping them connect day-to-day responsibilities to your company’s mission strengthens commitment and improves retention.

Keep your global team engaged with Oyster

Retaining global talent takes more than good intentions. It takes the right infrastructure, one that supports fair pay, local compliance, and a consistent employee experience across borders. Oyster’s employer of record (EOR) solution makes it easy to hire, onboard, pay, and support team members in 180+ countries—no local entities required.

With Oyster’s Total Rewards, you can align compensation and benefits with country-specific standards and navigate cultural and legal nuances with confidence. While Oyster does the heavy lifting to ensure you’re compliant, you can focus on retention strategies that will keep your team engaged for the long haul.

Whether you’re hiring your first international employee or your 50th, Oyster gives you the tools and guidance to do it right—every step of the way.

Book a demo to learn more.