Employee engagement

Five effective ways to retain employees

Retaining skilled employees is becoming increasingly challenging. With a wide range of options available, workers are quick to pursue new opportunities if their current role doesn't feel meaningful. Salary alone is no longer enough to secure commitment. What truly matters is how employees experience their day-to-day work. A lack of engagement often leads to higher turnover, which in turn costs companies time, money, and resources. That’s why employers should invest in practical and effective strategies that strengthen employee commitment.

This article introduces five hands-on approaches that businesses can use to improve the employee experience and reduce staff turnover.

Why are employee engagement and retention critically important

Building a strong and resilient organization starts with employees who find their work meaningful and envision a long-term future within the company. When people stay and thrive, the business preserves valuable knowledge and expertise while saving significantly on recruitment and onboarding costs. High retention translates into more stable, efficient teams, deeper customer relationships, and consistent product or service quality.

Engaged employees have a direct impact on company performance, workplace culture, and the organization’s adaptability to change. They contribute to a positive environment by sharing ideas openly, supporting colleagues in challenges, communicating with clarity and respect, and taking initiative without needing to be asked. These everyday behaviors strengthen team spirit and fuel daily motivation.

Replacing a single employee can cost anywhere from 50–250% of their annual salary, once you account for sourcing, onboarding, and training. So high turnover doesn’t just drain resources it can disrupt team dynamics and slow progress.

If a business aims to grow and remain competitive over time, investing in employee engagement and retention is not optional it’s the foundation of long-term success.

Five stratetig ways to engage and retain employees long-term

1. Build clear career paths and internal advancement opportunities

One of the most effective ways to strengthen employee commitment is to help them envision a future within your organization. When employees understand how their careers can progress and what development opportunities are available, they’re more likely to stay—and to give their full effort.

To support this, it's important to create clear and transparent career path models. These show employees the directions in which they can grow and the skills or experience needed for the next step. A well-structured development plan provides direction, inspires learning, and signals that employee growth is valued.

Key building blocks of a successful career path include:

• Clearly defined roles and advancement options.
• Skill requirements and baseline competencies for each role.
• Resources and learning opportunities that support skill development.
• Regular career planning discussions with supervisors.

Internal mobility is another essential element of long-term retention. When employees have the chance to change roles, try something new, or transfer to another team or department, they don't need to look elsewhere for growth. This helps retain top talent, reduces recruitment costs, and supports ongoing learning.

Ways to promote internal mobility include:

• Posting all open positions internally first.
• Encouraging managers to support cross-team movement.
• Tracking internal transfers and setting related goals.
• Offering short-term project assignments or job rotation opportunities.

2. Implement an open feedback and development system

o keep employees motivated and help them find meaning in their work, it’s essential to establish a clear and open system for feedback and progress tracking.

Regular, structured feedback gives employees a clear understanding of where they stand. Feedback helps them grow professionally and reinforces the feeling that their contributions are seen and appreciated. This builds trust and increases job satisfaction. Without enough feedback, many employees can feel uncertain about their performance—leading to disengagement.

Unclear expectations and lack of feedback often result in confusion and frustration. If employees don’t know what’s expected or how their performance is being evaluated, motivation can quickly wane.

You can prevent this by:

• Setting concrete and measurable goals for tasks.
• Tracking progress using shared tools and systems.
• Holding regular development conversations about performance and growth.

It’s also important to communicate the goals of the organization and the team openly. When employees understand how their work fits into the bigger picture and how the team is doing, they feel a stronger sense of purpose. This, in turn, increases accountability and gives day-to-day work more meaning.

You can support this by:

• Making key performance data visible when appropriate.
  
• Ensuring everyone understands how their role connects to broader objectives.
• Celebrating successes and openly acknowledging great work to reinforce positive action

3. Invest in leadership development at all levels of the organization

Strong leadership throughout all levels of an organization supports employee engagement, builds trust, and helps retain talent. When employees feel supported by their supervisors and see clear direction, their motivation and loyalty grow.

Leadership development shouldn't be reserved for top executives alone. If the goal is to build a culture of ownership and accountability, it’s important to offer leadership growth opportunities regardless of title or role.

This can be supported through initiatives like:

• Providing leadership training and foundational skills to team leads and subject matter experts.
• Encouraging employees to lead small projects or working groups.
• Enabling real-time mentoring and feedback in daily work.
• Teaching communication, decision-making, and constructive conflict resolution

When people are given the opportunity to lead and grow, they become more deeply committed. They recognize the impact of their role on team success and feel trusted. That kind of appreciation boosts motivation and reduces the urge to seek new challenges elsewhere.

4. Built and inclusive and values-based workplace culture

A workplace where people feel a sense of belonging and share common values fosters deeper employee engagement and improves retention. When employees feel safe, respected, and that their work aligns meaningfully with the company’s mission, they’re naturally inclined to stay and give their best.

Creating an inclusive, values-driven work culture boosts psychological safety—the sense that one can speak up, ask questions, and learn from mistakes without fear. This forms the foundation for open communication, trust, and stronger collaboration throughout the organization.

Finnish work culture already values equality, honesty, and flat hierarchies—an excellent foundation for inclusion. But culture doesn’t maintain itself—it must be actively nurtured and supported by practices that align with shared values.

Here are a few ways to promote this goal:

• Encourage open communication across the organization. Flat hierarchies and interactive culture foster closeness and a sense of equality.
• Enable employee participation in decision-making. When people feel their voice matters, trust and ownership grow.
• Clarify and communicate your company values. Make sure they guide hiring, onboarding, and daily team practices.
• Offer flexible work arrangements that reflect employees’ life situations—work-life balance is a cornerstone of wellbeing.
• Promote diversity in teams and leadership. Different backgrounds and perspectives create stronger teams and more innovative decision-making.
• Make appreciation visible—consistently recognize contributions fairly. This builds trust and strengthens a culture of fairness.

5. Leverage data-driven tools and metrics to strengthen employee engagement

Data-driven approaches make it easier to assess employee engagement, as feedback becomes clear and measurable insights.

These insights can be collected and analyzed using methods such as:

• Pulse surveys that regularly ask employees a few key questions on job satisfaction, workload, or leadership experiences
• Comprehensive employee surveys conducted once or twice a year to explore topics like values alignment, leadership, and development opportunities
• Unit or team-level comparisons to identify structural or cultural challenges across the organization
• Open feedback channels, such as always-available idea boxes or anonymous comment platforms
• Documented performance and development conversations that can be monitored over time

When used systematically, these methods can help:

• Detect trends, like post-peak period motivation dips
• Pinpoint units or teams where wellbeing support needs improvement
• Measure the impact of changes (e.g. hybrid work models) on employee experience

You can track engagement with concrete metrics that provide decision-ready, comparable data. Useful indicators include:

• Survey response rate, showing participation willingness and trust
• First-year turnover rate, highlighting onboarding and recruitment effectiveness
• Internal mobility, reflecting how often employees transition to new roles or teams
• Average engagement scores over time, based on questions like “How likely are you to recommend your employer to a friend?”
• eNPS (Employee Net Promoter Score), gauging advocacy on a scale from 0 to 10

This kind of analytics supports smarter, insight-led decision-making. You’re no longer guessing, you’re responding to what your people truly value.

Employee engagement is both long-term strategic work and everyday interaction. It’s not just about performance, but about trust, growth opportunities, and a shared direction. In a changing world of work, organizations that respond proactively and consistently are the ones that keep their top talent. Small steps when aligned with a broader purpose can make a surprisingly big impact on employee experience and retention.

Looking to improve employee retention and wellbeing at the same time?

Edenred’s employee benefits offer a practical way to strengthen day-to-day wellbeing and support long-term employee commitment. When employees feel supported—even in the small everyday moments—their engagement deepens and turnover decreases.

Frequently Asked Questions

How does onboarding impact employee engagement?

Onboarding is a critical stage in building employee commitment. A well-structured onboarding process helps new employees understand their role, the company culture, and expectations—laying the foundation for long-term engagement. Poor onboarding, on the other hand, can lead to uncertainty and a weaker employee experience, increasing the risk of early resignation.

How does work-life balance influence employee retention?

Work-life balance is a key factor in employee wellbeing and commitment. Flexible work arrangements, remote work opportunities, and employer support for personal needs contribute to higher job satisfaction and reduce staff turnover.

How does a sense of purpose affect employee engagement?

When employees understand how their work contributes to the company’s goals and feel that their role is valuable, their motivation and engagement increase. A sense of purpose fosters stronger commitment and a longer tenure.

How does employer branding affect employee engagement?

A strong and positive employer brand attracts new talent and reinforces the loyalty of current employees. When a company is known for a good reputation, a respectful culture, and genuine care for its people, employees feel proud to work there—and want to stay.

How does involving employees in decision-making impact engagement?

Involving employees in decision-making strengthens their connection to the organization. When people feel their voices are heard and they have influence over their work environment, their commitment and desire to stay grow stronger.

Would you like help engaging your employees more effectively? Get in touch with us, let’s build a better everyday experience for your team, together.