how to improve employee retention: 7 actionable strategies.

Outstanding employees drive your business forward, so keeping your top talent on board is crucial to long-term success. You can reduce turnover and increase job satisfaction by understanding how to improve employee retention through targeted initiatives. When skilled workers stay, your team flourishes, profits grow and your brand gains traction.

According to a 2024 Mercer study, Canada's average voluntary turnover rate is 11.9 percent. However, this rises to a whopping 25.9 percent for the retail and wholesale industry.

Meanwhile, Randstad Employer Brand Research (REBR) found that 16 percent of Canadians changed jobs in the second half of 2023, and a further 27 percent planned to move on during the first half of 2024. The top reasons for leaving? Low compensation followed by work-life balance.

Let’s talk about how to improve employee retention and reduce turnover.

unpack your company culture

The first step to reducing turnover is to better understand your company culture and current levels of employee job satisfaction. The best way to conduct this assessment is to gather key data points using several methods, including:

• Conducting engagement interviews: Exit interviews provide final opportunities to find out why employees leave. In contrast, ongoing engagement interviews can help prevent turnover before it starts. They allow you to gather employee feedback and address concerns before workers decide to leave.
• Creating a survey: Employees aren’t always comfortable speaking to higher-ups face to face. Many people feel more at ease responding to anonymous surveys; if initial uptake isn’t good, you can always add a response incentive.
• Approaching influential employees: Popular employees know what’s up on the factory floor. Ask informal leaders about morale in the general workforce and find out if they have ideas for improvement.
• Appraising your culture: To determine how your business stacks up against the competition from a culture perspective, consider hiring an independent consultant to assess policies, procedures and morale.

With your company climate sorted out, you can move on to the next phase: putting together a retention program. The following seven strategies can help you encourage, communicate with and retain your workers long-term.

1. offer flexible scheduling

Though remote and flexible working routines became the norm during the pandemic, there’s been a recent trend in companies mandating employees back to the office. But nearly one in five Canadians (18%) say inadequate flexible work options are a reason to quit, according to REBR. Moreover, Randstad’s Workmonitor report revealed nearly half (47%) want to work from home. Employers must continue to provide flexible work arrangements to hold onto their best.

Flexible work needn’t be limited to traditional desk jobs. In the logistics industry, cloud-based collaborative platforms make working from home both possible and highly productive. In factory settings, additional shifts provide flexible freedom. If you’re concerned about a drop in output, don’t worry: with the right oversight, remote work and flexible scheduling don’t affect productivity.

Start by developing a comprehensive flexible working policy. Also, consider partnering with a workforce management company. This type of dedicated on-site support can help with daily tasks such as filling shifts, freeing up your team for strategic priorities.

2. ensure work is meaningful

Job satisfaction is a significant factor in how to improve employee retention, and meaningful work contributes to job satisfaction.

In fact, almost a quarter (23%) of Canadians surveyed for REBR said a lack of interest in their job was a reason for leaving. This could be because they can’t use their skills or feel insufficiently challenged at work.

Employees who feel engaged perform well independently and contribute readily to teams. When companies share overarching goals with their workers — short-term productivity targets and long-term corporate plans, for instance — and invite feedback, employee engagement improves.

Meaningful work depends on communication. When employers communicate transparently and treat employees as individuals, they nurture a sense of purpose in the workplace. If you’re not sure what “meaningful work” looks like, ask your employees directly. Some staff members relish a little extra responsibility, for instance; others find skill-building opportunities energizing.

3. provide in-depth training

Workers appreciate clear opportunities to progress within their organizations, and good training begins with solid onboarding for new employees. A survey by Gallup found that 70 percent of people with great onboarding experiences say they have “the best possible job” and are 2.6 times as likely to be “extremely satisfied” with their workplace. In other words, they’re less likely to leave.

Training, in itself, represents a pathway to continued growth. Very few people dream of repeating the same tasks day in, day out, ad infinitum. Instead, they envision being given more responsibility within their departments, getting promoted and one day, working their “dream jobs.”

Most training plans begin with a combination of orientation and onboarding and then progress to a tech and soft skills curriculum. Safety and quality control training is also vital in the manufacturing, logistics and automotive sectors.

Well-designed mentorship programs complement formal training beautifully. Pairing experienced staff as mentors with newer team members creates natural knowledge transfer and relationship building. These connections help fresh faces learn the unwritten rules of your workplace while giving seasoned employees a chance to develop leadership skills.

Don’t, however, make the mistake of creating a build-it-and-forget-it training program. It’s crucial that all employees know how the training program works and what options are available. In fact, you should make frequent announcements about training opportunities to entice employees to seek out more information.

By understanding how to improve employee retention through training initiatives, you can reduce turnover and increase job satisfaction.

4. tackle bad bosses

Bosses boss people around; leaders lead. Bad bosses — managers who dominate the people they supervise or who invite feedback only to respond with criticism if they receive it — directly cause employee turnover.

A Florida State University study found that 39 percent of respondents said their bosses didn’t keep promises. A further 37 percent said their managers never gave them credit for hard work. Shockingly, 31 percent of participants said their supervisors routinely gave them the “silent treatment.”

Never ignore signs of leadership failure in your organization. Perhaps one of your departments has a consistently high attrition rate, for example. Speak to your employees to find out what’s going wrong. If workers fear retaliation, create an anonymous survey and use incentives to encourage participation.

If you do find evidence of bad management, confront the issue directly. Some supervisors improve after soft skills retraining — communication or leadership, for instance. Others habitually fall short or commit misconduct; in that case, a managerial reshuffle might save the day.

5. offer employee recognition programs

Employee recognition programs make people happy. Factory workers often feel like faceless drones and delivery drivers work long hours in relative isolation. Well-conceived recognition programs improve morale because they make employees feel valued, which is critical to improved retention. “Employee of the Month” programs are long-time favourites and still work well. Goal-based recognition programs are also effective. For example:

• end-of-month social gatherings/catered lunches for departments that meet production goals
• employee work anniversary recognition
• peer nomination awards that spotlight teamwork and collaboration
• public praise for workers who champion safety protocols
• spotlight stories in company newsletters featuring staff who go above and beyond

6. make sure you’re offering competitive compensation

Money talks when it comes to how to improve employee retention. If your company faces higher-than-average employee turnover, take a close look at your pay and benefits structure. Smart organizations keep pace with industry standards—or risk watching their talent walk out the door.

Start by benchmarking your compensation against similar businesses in your region. Use the latest Randstad Salary Guide to see where you stand. If you're paying below market rates, create a plan to bring wages up to competitive levels. Remember: replacing experienced workers costs far more than paying them properly in the first place.

But financial rewards go beyond the basic salary. A robust benefits package shows workers you value their whole lives, not just their working hours. Consider offering a mix of practical and lifestyle perks:

• comprehensive health coverage (medical, dental and vision)
• company-matched pension plans
• generous paid time off
• flexible working arrangements
• gym memberships or wellness allowances
• professional development funding
• parental leave above statutory minimums
• mental health support services
• transportation allowances
• remote work equipment stipends

The investment pays off. When workers feel financially secure and well-supported, they put down roots. They focus on building their careers rather than scanning job boards. Plus, word gets around—companies known for treating staff well attract better candidates.

Remember: your compensation package speaks volumes about how much you value your people. Make sure it's telling the right story.

7. work with an HR partner

Finding the right people starts with strategic partnerships. Strong connections between HR leaders and recruitment specialists help organizations stay competitive in today's job market. Their combined guidance ensures you hire candidates whose values align with your company—after all, strong cultural fit leads to longer-term commitments.

Think about those candidates who sparkle on paper but struggle after hiring. It's a common challenge that professional recruiters face and solve daily. Their constant work with job seekers and employers builds deep insight into what makes successful matches. These specialists collaborate with your internal HR team, sharing data-driven strategies to strengthen your hiring process from initial screening to final offer.

Top HR partners maintain extensive databases of pre-screened candidates, often numbering in the tens of thousands. When you partner with them, they tap into this talent pool to fill your roles efficiently. But more than just filling seats, they help you:

• Define what true cultural alignment looks like for your organization
• Create more accurate job descriptions that attract suitable candidates
• Build structured interviews that reveal character and workplace values
• Develop onboarding processes that reinforce company culture
• Track hiring success through meaningful metrics
• Adjust strategies based on real-world results

Remember: quick hires often lead to quick departures. Taking time to find candidates who truly fit your organization's culture and values pays dividends through improved retention and team harmony.

partner with randstad

Knowing how to improve employee retention is tricky. Gathering the right data isn’t easy, and formulating a workable retention plan can be tough without external input — and that’s where Randstad comes in. With more than six decades of staffing and recruitment, as well as workplace management skills under our belts, we know how to find, hire and motivate the right staff for you.