As we head into 2025, employee retention remains a challenge for organisations of all sizes. With the evolving nature of work and shifting employee expectations, businesses must focus on strategies that not only keep employees happy but also engaged, motivated, and committed. In this blog, we’ll explore some essential employee retention ideas for 2025, ensuring that you create a workplace where top talent wants to stay.
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Define a clear career path: What's next for your employees in 2025?
One of the most effective ways to retain employees is by helping them envision a future within your organisation. 2025 has come and employees will want to know what career path and growth opportunities are present within the organisation.
By providing structured career progression plans and regular skill development opportunities, you can empower employees to see themselves staying within the organisation to reach their career goals.
Ensure that employees understand how they can move forward in their careers — whether it’s through mentorship, training, or stretch assignments. When employees feel like their work has a purpose and their efforts will lead to personal growth, they’re much more likely to stay committed.
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Stay on top of salary increases: Do your employees receive compensation packages that reflect both industry standards and their contributions?
With the increasing cost of living crisis happening in New Zealand and around the world, it’s important to keep in mind the pressure this is causing and the drive employees have for financial stability. Money is by no means everything, but keeping your compensation plans competitive shows your employees that they are highly valued within the organisation and their hard work very much appreciated.
Conduct regular market research to ensure that your salaries are aligned with current trends in your industry and location i.e. Strategic Pay. You could implement clear salary bands for transparency (made visible or hidden in BambooHR), and offer performance-based raises and bonuses that reward high performers.
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Stay in the know: What's your current employee morale around the office?
One of the best ways to gauge employee satisfaction and morale is through regular check-ins and feedback loops. By actively seeking feedback — whether through surveys, one-on-one meetings, or team discussions — you can quickly identify issues before they become bigger problems. We find adding in specific questions on this in the BambooHR self-assessment to be helpful as well as making use of the Wellness Survey.
Having an open line of communication with your employees about their job satisfaction, workload, and personal goals allows you to proactively address any concerns. Monitoring employee morale consistently will help you create a supportive environment where employees feel comfortable and connected to the organisation.
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Create a culture of recognition: Are you or your managers acknowledging the big and small positive contributions of the team?
Recognition is a simple but powerful tool for retention. Employees who feel appreciated are far more likely to stay with an organisation and continue producing great work. Acknowledging positive contributions could be done during team meetings, one on one's, or by creating a 'Shout-Out' or 'Kudos' custom workflow in BambooHR. This will ensure the employee feels seen and valued.
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Prioritise mental health: Is your organisation prioritising mental health in the workplace?
Mental health remains a top priority for both employees and employers alike. The ongoing pressures of work, coupled with the challenges in personal lives and the cost of living crisis, it can take a toll on employees' well-being.
New Zealand has been heralded as one of the top Countries to for work-life balance. Let’s keep this up by encouraging a culture where it’s okay to take breaks, speak openly about wellbeing, and maintain a healthy work-life balance.
Organisations that invest in their employees' mental well-being not only reduce burnout but also create an environment of trust and support, where employees feel cared for and are more likely to stay long term.
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Learning & Development: encourage and support employee growth
It's natural for employees to want to develop as individuals, build new skills, and contribute to something meaningful. Investing in learning and development opportunities will help employees grow in their careers, and in turn, keep them engaged with your organisation.
You could offer workshops, training sessions, access to online courses, conference attendance or structured mentorship. Encourage employees to set personal development goals and provide support for them to achieve those goals.
Conclusion
In 2025, employee retention will require organisations to be more adaptive, empathetic, and proactive than ever before. Times are still tough out there in the market and it certainly a lot tougher when you lose top talent. You hear a lot about the cost to hire, but the cost to lose an employee tends to be far greater when you factor in lost productivity and the training required to get someone new up to speed.
By integrating the above strategies into your workplace culture, you'll have put in the groundwork to not only retain your top talent but also build a workforce that is engaged, motivated, and dedicated to your organisation’s success.