Employee retention is one of the clearest indicators of whether an organisation is creating a workplace where people want to stay. While competitive salaries and benefits matter, employees also consider how they're treated, whether they feel recognised and what opportunities they have to develop.
A positive workplace culture can support employee retention by building trust, improving communication, recognising contributions and helping employees feel connected to their colleagues and the wider organisation.
But when employees feel overlooked, unsupported or disconnected from company values, they're more likely to question their future with their employer.
According to the CIPD's 2026 Resourcing and Talent Planning report, 44% of UK organisations reported that talent had become more difficult to retain over the previous year.
And while recruitment is an important part of workforce planning, retaining experienced employees can help organisations protect valuable knowledge, maintain operational continuity and reduce the disruption associated with replacing staff.
So what does a workplace culture that supports employee retention actually look like?
In this article, we'll explore five signs of a positive workplace culture, practical ways to retain employees and how organisations can measure whether their retention strategies are working.
How does positive workplace culture improve employee retention?
A positive workplace culture supports employee retention by creating an environment where people feel respected, recognised, included and supported in their development. Open communication, supportive leadership, fair working conditions and strong workplace relationships can help address common reasons employees leave, reducing avoidable turnover and encouraging employees to remain with an organisation.
What is employee retention?
Employee retention refers to an organisation's ability to keep employees over a defined period.
Businesses typically measure retention by tracking how many employees remain with the organisation over time.
Employee retention strategies are the actions an employer takes to reduce unwanted turnover and encourage people to stay.
These strategies can include improving workplace culture, supporting career development, offering competitive rewards and creating more effective communication between employees and leaders.
Strong retention can benefit organisations by:
- Reducing unnecessary recruitment and onboarding costs.
- Preserving valuable employee knowledge and experience.
- Maintaining stronger working relationships.
- Supporting consistent customer and employee experiences.
- Reducing disruption caused by frequent departures.
- Supporting long-term workforce planning.
However, employee retention should not be confused with employee satisfaction. Employees can remain in jobs they don't enjoy because of financial commitments, limited alternatives or other circumstances.
A successful retention strategy should therefore focus on both keeping employees and improving their experience at work.
Why is workplace culture important for employee retention?
Workplace culture influences how employees experience their organisation every day.
It includes leadership behaviour, communication practices, working relationships, organisational values and the way employees are supported and recognised.
A healthy workplace culture can encourage employees to build stronger connections, participate in company activities and develop confidence in their future with an employer.
By contrast, poor communication, inconsistent management, unresolved conflict and limited progression can contribute to employee dissatisfaction and turnover.
The Work Institute's 2026 Retention Report identifies career development, work-life balance, management and workplace environment among the factors influencing employee departures.
This demonstrates why retention cannot be addressed through recruitment or salary decisions alone.
| Workplace culture factor | Potential retention risk | Positive organisational approach |
|---|---|---|
| Communication | Employees feel excluded or uninformed. | Transparent updates and two-way communication. |
| Recognition | Employees feel their contributions are overlooked. | Regular appreciation and meaningful feedback. |
| Development | Employees cannot see a future with the organisation. | Career pathways, learning and internal opportunities. |
| Technology | Everyday work becomes unnecessarily frustrating. | Accessible tools, information and employee support. |
| Belonging | Employees feel isolated or disconnected. | Supportive teams, collaboration and inclusion. |
Improving these areas can form part of a broader employee retention strategy that supports people throughout their time with an organisation.
5 signs of a positive workplace culture that supports employee retention
Organisations often describe their cultures using values such as trust, collaboration and respect.
However, these values are most meaningful when employees experience them through everyday actions.
Here are five signs of a workplace culture that can help improve employee retention.
Open communication and trust in leadership
Employees are more likely to feel connected to an organisation when they trust its leadership and understand what's happening around them.
Open communication doesn't mean sharing every business decision immediately. It means being clear, consistent and willing to answer questions when employees need information.
This becomes especially important during periods of organisational change, such as restructuring, new technology rollouts or changes to working arrangements.
When employees don't understand what's changing or how decisions affect them, uncertainty can damage trust and create dissatisfaction.
Leaders should also provide opportunities for employees to share their own views.
Employee voice is an important part of a positive culture. Listening helps employers understand the challenges people face before those concerns influence their decision to leave.
- Share regular leadership updates about company priorities.
- Explain organisational changes and how they affect employees.
- Provide opportunities for employees to ask questions.
- Use pulse surveys to gather feedback from different teams.
- Communicate the actions taken in response to employee concerns.
Why this supports employee retention: Employees who feel informed and listened to have more opportunities to build trust in their employer and raise concerns before they become reasons to leave.
Meaningful employee recognition and fair rewards
Employees want to know that their contributions matter.
Recognition can help organisations demonstrate appreciation for good work, whether that's completing a major project, supporting a colleague or consistently delivering a positive customer experience.
Formal rewards have their place, but recognition doesn't always require a large budget.
Simple acknowledgements from managers and colleagues can help reinforce positive working relationships.
For example, an organisation could introduce peer-to-peer recognition through an internal communication platform, allowing employees to celebrate achievements across different departments.
However, recognition should complement fair pay, appropriate benefits and reasonable working conditions rather than substitute for them.
Employees are unlikely to feel genuinely appreciated if public praise is inconsistent with how they're treated in their everyday roles.
- Encourage managers to recognise everyday achievements.
- Celebrate individual and team contributions.
- Introduce opportunities for peer-to-peer recognition.
- Ensure recognition reaches frontline and remote workers.
- Review reward practices for fairness and consistency.
Why this supports employee retention: Regular, meaningful recognition can help employees feel valued and strengthen their connection to the organisation.
Career development and support for work-life balance
One of the strongest signs of a positive workplace culture is an organisation that invests in its employees' futures.
Employees should have opportunities to develop their skills, explore career progression and discuss what they want from their roles.
This doesn't mean every employee wants a promotion or leadership responsibilities.
Some people may prefer to deepen their expertise, learn new skills or find greater satisfaction in their current position.
A supportive culture recognises these differences rather than assuming everyone has the same ambitions.
Career development is also an important retention consideration. In its 2026 Resourcing and Talent Planning research, the CIPD found that 48% of UK employers had increased their efforts to develop talent internally over the previous year.
Work-life balance also matters.
Employees may value predictable shifts, flexibility where possible, manageable workloads and respect for their personal commitments.
For organisations with frontline workforces, improving flexibility may involve better scheduling and earlier communication of rota changes rather than remote working.
- Introduce regular career development conversations.
- Communicate internal vacancies and progression opportunities.
- Provide accessible training and mentoring.
- Support employees who want to develop within their current roles.
- Review workload, scheduling and suitable flexible working options.
Why this supports employee retention: Employees who can see opportunities to grow and maintain a sustainable working experience may have fewer reasons to seek opportunities elsewhere.
Retention is a long-term commitmentCareer development, recognition and fair working practices should be part of the everyday employee experience. Waiting until someone indicates they're leaving is often too late to address concerns effectively.
Accessible workplace technology that makes employees' jobs easier
Workplace technology can influence how employees feel about their organisation.
When information is difficult to find, systems are disconnected or employees lack access to essential resources, everyday tasks can become unnecessarily frustrating.
These challenges may be particularly noticeable in large organisations with employees working across different locations and departments.
A modern intranet can help provide a more consistent experience by connecting employees with company communication, workplace knowledge and relevant tools.
Technology should also reflect how employees work.
For frontline employees, mobile access may be essential. For office-based teams, integrations with existing productivity applications may be more important.
Organisations should also consider the experience of new starters.
Effective onboarding can help employees find the information, people and resources they need during their first weeks, supporting a more positive introduction to the business.
- Make important workplace information easy to find.
- Provide mobile access for employees who work away from desks.
- Connect relevant systems to reduce unnecessary complexity.
- Support new starters through structured onboarding content.
- Gather feedback about the tools employees use every day.
Why this supports employee retention: Accessible, useful technology can reduce everyday friction and demonstrate that the organisation is investing in employees' working experience.
Customer example: NatWest Group
NatWest Group previously relied on multiple legacy intranet systems, making internal communication more complicated for employees.
Working with Oak Engage, NatWest introduced a more consistent employee communication experience, including personalised news and improved access to organisational information.
The results demonstrate how simplifying internal communication can improve access and participation across a large organisation.
Although these are engagement and communication outcomes rather than direct retention measurements, they illustrate improvements in the employee experience.
A strong sense of belonging and collaboration
Employees are more likely to build meaningful workplace relationships when they feel included and connected to their colleagues.
A positive culture should create opportunities for employees to work together, share experiences and participate in organisational activities.
This is particularly important for businesses with dispersed workforces.
Employees working across different stores, sites, shifts or countries may have fewer opportunities to develop relationships with colleagues outside their immediate teams.
Workplace communities, shared-interest groups and cross-departmental projects can help people connect beyond their everyday responsibilities.
Social activities should also be inclusive of employees with different working arrangements and personal commitments.
For example, providing opportunities for employees to participate during working hours can make activities more accessible to people who cannot attend events outside their shifts.
Businesses should also create opportunities for employees to collaborate on workplace improvements, not just social activities.
Employee engagement initiatives that encourage participation, communication and recognition can help strengthen these workplace connections.
- Create opportunities for cross-departmental collaboration.
- Introduce employee communities and shared-interest groups.
- Make social activities accessible across different working patterns.
- Encourage employees to share their experiences and achievements.
- Support managers in resolving workplace conflict constructively.
Why this supports employee retention: Strong workplace relationships can help employees feel connected to their organisation and develop a greater sense of belonging.
Employee retention in practice: How Five Guys reduced employee turnover
Five Guys provides a practical example of how improved employee communication, recognition and workplace connection can form part of a successful retention strategy.
With thousands of frontline employees working across restaurants in the UK and Europe, Five Guys needed a more effective way to connect teams, share information and support employees working different shifts.
Working with Oak Engage, Five Guys launched its employee app, Chatty Patty, creating a central space for communication, workplace resources, employee recognition and feedback.
Five Guys: Reported employee retention results
According to Oak's Five Guys case study, hourly paid crew turnover fell from 110% to 48.8%, representing a reported reduction of approximately 56%.
The organisation also reported stronger manager retention, high employee app adoption and improved opportunities for employee feedback.
Chatty Patty helped Five Guys give employees direct access to company information and a shared space for recognition and connection across its restaurants.
These are Five Guys' reported outcomes and should not be interpreted as guaranteed results or as evidence that the app alone caused every improvement.
What can other organisations learn?Employees are more likely to use workplace technology when it helps them with real tasks, makes important information accessible and provides meaningful opportunities to connect with colleagues.
How to improve employee retention through workplace culture
Building a positive workplace culture requires consistent action rather than isolated initiatives.
Organisations should understand the needs of different employee groups, identify areas of dissatisfaction and develop practical improvements.
1. Identify the reasons employees leave
Review exit interviews, turnover patterns, employee feedback and internal mobility data.
Look for recurring concerns involving management, workload, development opportunities, recognition and communication.
Different departments or employee groups may experience different challenges, so avoid relying exclusively on company-wide averages.
2. Listen to employees before they decide to leave
Regular pulse surveys, one-to-one conversations and employee feedback channels can help organisations understand emerging concerns.
Employee feedback should be accompanied by clear communication about the actions taken.
If employees repeatedly share concerns without seeing meaningful responses, confidence in the process may decline.
3. Support managers in improving employee experience
Managers influence many aspects of the employee experience, from workload and communication to recognition and development.
Provide managers with appropriate training and support so they can have meaningful conversations, respond to concerns and recognise employees consistently.
4. Build a retention strategy for different employee groups
A retention strategy should reflect how employees work.
For example, frontline teams may prioritise predictable scheduling, communication accessibility and clear operational guidance.
Office-based employees may place greater emphasis on hybrid working, career development and collaboration tools.
Both groups need fair treatment, recognition and opportunities to contribute.
5. Measure progress and adapt your approach
Track retention, voluntary turnover, employee feedback and engagement to assess whether improvements are working.
Review results over time, particularly after major organisational changes or the introduction of new people initiatives.
How to measure employee retention and workplace culture
Understanding employee retention requires more than counting how many people leave.
Organisations should combine quantitative measures with employee feedback to understand both retention outcomes and the reasons behind them.
How to calculate employee retention rate
A common formula is:
Employee retention rate = (Number of employees from the starting workforce who remain at the end of the period ÷ Number of employees at the start of the period) × 100
For example, if an organisation starts with 100 employees and 90 of those original employees remain after one year, its employee retention rate for that group is 90%.
This calculation excludes new hires when determining how many of the original employees have stayed.
Key employee retention metrics to track
| Metric | What it measures | Why it matters |
|---|---|---|
| Employee retention rate | Percentage of the original workforce remaining over a period. | Shows how effectively the organisation retains employees. |
| Voluntary turnover rate | Employees choosing to leave the business. | Helps identify potential retention challenges. |
| New starter retention | Employees remaining after their first months or year. | Helps assess recruitment, onboarding and early employee experience. |
| Employee satisfaction | How employees feel about their working conditions. | Can reveal concerns that turnover data alone may miss. |
| Employee engagement | Employees' involvement and connection to their work. | Provides additional context about workplace experience. |
| Internal mobility | Employees moving into new roles within the organisation. | Helps assess whether development opportunities are available. |
| Feedback themes | Recurring concerns and suggestions from employees. | Helps identify issues employers may be able to address. |
Organisations should also consider whether retention differs by department, location, role or length of service.
For example, high new starter turnover may indicate onboarding problems, while departures among experienced employees could suggest different development or management challenges.
Employee retention checklist: Is your workplace culture helping people stay?
Use the following questions to assess whether your workplace culture supports employee retention.
Employee retention and workplace culture checklist
- Do employees trust leadership to communicate openly?
- Can employees raise concerns and receive meaningful responses?
- Are contributions recognised fairly and consistently?
- Do employees understand their career development opportunities?
- Are working arrangements and workloads regularly reviewed?
- Can frontline employees access important company information?
- Do employees have opportunities to connect with colleagues?
- Does onboarding help new starters feel supported?
- Are managers equipped to recognise and address retention risks?
- Does the organisation measure retention alongside employee experience?
Areas where employees consistently report negative experiences can provide a useful starting point for improving your retention strategy.
How Oak Engage supports employee retention
Employee retention is influenced by many factors, including pay, leadership, development and workplace culture.
Although no software platform can address every reason employees leave, the right technology can support employee communication, recognition, onboarding and connection.
Oak Engage helps organisations create a more accessible and engaging employee experience.
Employee recognition
Celebrate contributions through recognition features that help employees feel acknowledged and connected to company values.
Employee communities
Bring colleagues together through social feeds, community hubs and shared-interest groups.
Employee feedback
Gather feedback through surveys and polls, helping organisations understand employee sentiment and identify emerging concerns.
Targeted communication
Provide relevant company updates to employees based on their roles, teams and locations.
Employee onboarding
Help new starters access workplace knowledge, information and relevant resources from the beginning of their employment.
Frontline communication
Support employees through mobile, desktop and digital signage, including those who don't regularly work at a desk.
Oak can also connect employees with existing workplace applications, helping organisations provide a more consistent digital experience.
For businesses comparing technologies that support communication, engagement and workplace information, our guide to digital workplace platforms explores different solutions.
Discover more about how Oak Engage supports employee retention through communication, connection and recognition.
Employee retention FAQs
What is employee retention?
Employee retention is an organisation's ability to keep employees over a defined period. Retention strategies aim to reduce unwanted turnover and create working conditions that encourage employees to stay.
How does workplace culture affect employee retention?
Workplace culture influences how employees experience leadership, communication, recognition, relationships and development. A positive culture can help employees feel supported and connected, while poor working conditions may contribute to dissatisfaction and departures.
What are the five signs of a positive workplace culture?
Five important signs are open communication, meaningful recognition, opportunities for development, accessible workplace resources and strong relationships between employees.
What are effective employee retention strategies?
Effective strategies can include improving communication, recognising contributions, supporting career development, reviewing pay and flexibility, strengthening onboarding and listening to employee feedback.
What causes poor employee retention?
Common reasons employees leave include limited career opportunities, unsupportive management, poor work-life balance, inadequate rewards and workplace culture concerns. The most important factors vary between organisations and employee groups.
How do you calculate employee retention rate?
Divide the number of employees from the original workforce who remain at the end of a period by the number employed at the beginning, then multiply by 100. For example, retaining 90 out of an original 100 employees results in a 90% retention rate.
What is a good employee retention rate?
A good retention rate depends on industry, job roles, labour market conditions and organisational circumstances. Compare results with appropriate sector benchmarks and examine voluntary turnover and employee feedback alongside the overall rate.
Can employee recognition improve retention?
Recognition can help employees feel valued and strengthen workplace relationships. It is most effective when it forms part of a wider employee experience strategy that also addresses pay, management and development opportunities.
How can organisations improve frontline employee retention?
Frontline employee retention strategies may include predictable scheduling, accessible communication, effective onboarding, recognition, development opportunities and better access to workplace information.
Can an intranet help improve employee retention?
An intranet can support retention initiatives through employee communication, recognition, workplace communities, onboarding and feedback. However, its impact depends on how the organisation uses it alongside broader management and people practices.
Conclusion: Positive workplace culture is essential to employee retention
Employee retention isn't simply about persuading people to stay. It's about creating a workplace where employees have meaningful reasons to build their future.
Open communication, recognition, development, accessible technology and supportive workplace relationships can all contribute to a more positive employee experience.
Organisations that understand why employees leave, listen to feedback and invest in the everyday experience of their workforce are better positioned to address avoidable turnover.
The results reported by Five Guys also demonstrate how improved employee communication and connection can contribute to wider retention initiatives.
Looking to create a more connected workplace and strengthen your employee retention strategy?
Explore how Oak Engage supports employee retention through targeted communication, recognition, workplace communities and employee feedback.
