The critical state of Employee Retention: How leaders can build a productive workplace
Employee retention has never been more critical - or more challenging. With hybrid work now the norm for 63% of high-growth companies and skills-first hiring reshaping recruitment, businesses are struggling to keep top talent engaged. A recent Gallup report revealed that only 23% of employees worldwide are fully engaged at work, while 62% are not engaged and 15% are actively disengaged. These low engagement levels are estimated to cost the global economy approximately $8.9 trillion, equivalent to 9% of global GDP. These insights emphasize the critical importance of employee engagement and well-being in today’s workplace.
For leaders, this isn’t just a human resources issue — it’s a strategic priority. Employees today are looking for more than just competitive salaries; they want opportunities to grow, flexibility to manage their work-life balance, and leaders who invest in their success. Upskilling and fostering trust through personalized engagement are no longer optional — they’re essential tools for retaining employees in a rapidly evolving world.
Your role as a leader goes beyond implementing policies or programs. It’s about building meaningful connections, encouraging development, and creating an adaptable workplace culture. By focusing on one-on-one engagement and fostering flexibility, leaders can ensure their teams remain engaged, productive, and loyal.
Here’s how you can lead the charge.
Upskilling Starts With a Conversation
To develop your team, begin by understanding each employee’s unique strengths, aspirations, and growth areas. Consider these approaches:
Conduct Developmental Check-ins
Move beyond the typical performance review. Schedule regular, informal one-on-one meetings focused on long-term growth.
Ask:
What skills do you want to build this year?
What projects excite you?
Where do you see yourself in two years, and how can I help?
These conversations show employees you value their future, not just their output today.
Assign Purposeful Projects
When employees express an interest in growth, align their aspirations with stretch assignments. For example, if a team member wants to improve presentation skills, ask them to co-lead a client meeting. This not only builds skills but also reinforces your confidence in them.
Encourage Peer Mentorship
Foster relationships within your team by pairing experienced employees with those looking to develop similar skills. Peer mentorship strengthens collaboration and allows employees to learn from real-world expertise.
Flexibility Without Losing Productivity
A flexible workplace thrives on mutual trust and clear communication. Here’s how you can set the tone:
Focus on Outcomes, Not Hours
Shift the emphasis from "time spent working" to results achieved. During team meetings, clearly define objectives and let employees take ownership of how and when they achieve them. Reinforce this approach by publicly recognizing achievements rather than time logs.
Set Boundaries for Flexibility
While flexibility is key, structure is equally important. Collaborate with your team to define boundaries, such as core hours for availability or specific days for in-person collaboration. For instance, a finance team might agree to have Wednesdays as their “sync day” in the office.
Model Flexibility Yourself
Leaders set the tone. If you want your team to embrace flexibility, demonstrate it yourself. Whether it's blocking time for personal commitments or showing openness to remote work, your behavior validates theirs.
Retention Through Recognition and Progress
Retention isn’t just about keeping employees - it’s about keeping them engaged and fulfilled.
Here’s how you can take action:
Acknowledge Achievements Regularly
Publicly recognize employee milestones, whether it’s completing a challenging project or gaining a new certification. A simple, genuine acknowledgment in a team meeting can go a long way toward making employees feel valued.
Build Clear Career Pathways
Show employees how their roles can evolve within the organization. Be transparent about opportunities and promotions, and map out concrete steps to get there. For example, if an employee excels at project management, outline what they need to achieve to lead their own team.
Solicit Honest Feedback - and Act on It
Ask employees what’s working and what isn’t, and demonstrate your commitment by making meaningful changes. For instance, if several team members highlight burnout, consider redistributing workloads or offering additional mental health resources.
Be the Leader They Want to Work For
Retention often boils down to how employees perceive their direct manager.
To inspire loyalty:
Be Approachable: Encourage employees to bring challenges or ideas directly to you without fear of judgment.
Offer Constructive Feedback: Frame critiques as opportunities for growth. Instead of pointing out what went wrong, highlight how they can improve.
Celebrate Their Success: When your team succeeds, make it clear that you see - and appreciate - their hard work.
Case Study: Personal Growth in Action
A regional manager in a retail company noticed one of his employees, a customer service associate, had a knack for technology. Over lunch, he asked about her interests and discovered she was passionate about IT support. He worked with her to shadow the IT team part-time while still handling her regular duties. Within six months, she transitioned to an entry-level IT role within the company - a move that saved the organization recruitment costs and built immense loyalty.
Your Next Steps as a Leader
Prioritize Personal Development: Treat upskilling as a partnership between you and your employees.
Foster a Culture of Trust: Build flexibility into your team's workflow without compromising results.
Be Proactive About Retention: Recognize that retention begins the moment you hire someone, not when they’re about to leave.
In 2024, the businesses that thrive will be the ones led by individuals who understand that employee development isn’t a “nice to have” - it’s a competitive advantage. By investing in your people today, you’re not just shaping their futures - you’re ensuring the success of your business tomorrow.
Further reading
Gallup’s “State of the Global Workplace 2024” report: https://www.gallup.com/workplace/349484/state-of-the-global-workplace.aspx