So, what makes employees stay? Most experts agree that employees stay when they feel valued. Here are five proven strategies that will help your team feel appreciated and motivated to stay. 

• Competitive Compensation and Benefits 

Offering competitive compensation and benefits is crucial for retaining employees. If you value their work, make sure you compensate them fairly. However, some companies go beyond just offering competitive salaries and benefits—they ensure that their employees understand they are being paid according to, or even above, industry standards. 

For example, Buffer, a social media toolkit company, maintains transparent salary structures and conducts regular pay reviews to stay competitive. Salesforce, a cloud-based software company, has committed to providing equal pay for all employees, regardless of gender, race, or ethnicity. Their comprehensive approach includes regular pay audits conducted by third-party organisations to review pay data. This ensures an unbiased analysis and promotes transparency. When disparities are found, Salesforce takes proactive steps to adjust salaries, ensuring fair compensation for all employees. 

• Recognition and Appreciation 

Recognition is a powerful motivator. Beyond monetary rewards, employees want to be acknowledged for their contributions to the growth and development of an organisation. Recognising employees’ efforts makes them feel appreciated and valued. 

NARS Cosmetics, a well-known beauty brand, implemented a comprehensive recognition program that successfully reduced turnover by 10%. They have formal recognition initiatives like awards that publicly honour high achievers within the company, including an Employee of the Month award. Additionally, they offer informal recognition through spot bonuses and personalised thank you notes from managers. NARS also encourages peer-to-peer recognition, allowing employees to give shout-outs or kudos to their colleagues on digital platforms, or even nominate them for various awards. 

• Transparent Communication

Open communication is essential for building and nurturing trust. Buffer exemplifies this with its open communication policy, which fosters trust and engagement among employees. Their approach is thorough, showcasing a strong commitment to both open communication and transparency. 

Buffer takes transparency to the next level by making their salary formula publicly accessible, allowing employees and even outsiders to see how salaries are determined. They also maintain transparency in their decision-making processes, keeping a log of major decisions and explaining the rationale behind them. 

While transparent communication may seem simple, it can be challenging to implement effectively. Buffer’s approach to transparent communication took time to develop. For small businesses, consider establishing regular check-ins, feedback sessions, and an open-door policy to encourage open communication with management. 

• Monitor Employee Engagement and Satisfaction 

Engaged employees are not only more productive but also more invested in their work and the team. Companies like Officevibe, which specialises in employee experience solutions, use pulse surveys to regularly gauge employee satisfaction and address any concerns proactively. 

Working in smaller teams offers the advantage of being able to more easily check in with employees to understand their needs and concerns. The key is to understand how your team feels. Are they equipped with what they need to succeed? What challenges are they facing, and how can you support them? 

• Cultivate a Sense of Purpose 

People want to feel like they belong to something that gives their work meaning. They seek to be part of a team with goals and values that resonate with their own. This is why 91% of  Patagonia employees consider it a great place to work, compared to just 57% in a typical U.S.-based company. Patagonia’s strong commitment to environmental sustainability attracts employees who are passionate about these values, fostering dedication and engagement in impactful projects. 

To create a strong sense of unity within your team, identify shared values and find ways to reflect these in your work environment. Think about how your company culture aligns with these values, how you meet your customers’ needs, and how you celebrate successes and learn from mistakes. It could be a combination of these elements that brings your team together. 

Adopting strategies like offering competitive compensation, recognising employee contributions, maintaining transparent communication, engaging your team, and fostering a sense of purpose can greatly improve employee retention. By creating a supportive environment, providing growth opportunities, and showing genuine appreciation for your employees, you’ll build a loyal and committed team. Begin implementing these strategies today and see the positive effects on your organization.