Employee retention strategies [How to keep your staff engaged]

The era of "The Great Resignation" has evolved. In 2026, we’ve entered "The Great Hold-On." While turnover rates in some sectors have stabilised, a new challenge has emerged: Job Hugging.

This is where employees "hug" their current roles out of economic necessity, even if they are emotionally checked out. High employee retention is only a win if it’s paired with high employee engagement. If your team is "staying but straying," your productivity will suffer.

And when burnout rises and engagement dips, a "chain reaction" of departures often follows. So if you are seeing a surge in people leaving, it’s time to move beyond reactive hiring and start focusing on a proactive retention strategy.

This blog covers how to retain your best talent, and keep them performing. People on a quest for a better employee experience, so be sure you can provide them with one.

What is employee retention?

Employee retention refers to an organisation’s ability to keep its employees over time and minimise turnover. It is the ultimate "health check" for your business; a high retention rate suggests a thriving company culture and high levels of employee wellbeing.

How to measure employee retention

To understand your standing, you must calculate your retention rate for a defined period (e.g., annually or quarterly).

The formula:

(Total employees on the last day of the period / Total employees on the first day of the period) x 100 = Retention %

Note: Do not include new hires made during this period in the "start" or "end" count to ensure accuracy.

What is a "good" retention rate?

Ideally, you want your retention rate to be around 90%. While the average turnover rate in the UK sits around 15%, this varies wildly by industry. For instance, hospitality and retail often see turnover rates double the national average.

Why retaining your employees is critical

Employee retention shouldn't be looked at as just a HR metric, it also has a huge impact on financial and operational metrics. Consider these figures:

• Profitability: Companies with high retention rates experience up to 4x higher profits.
• The cost of loss: Replacing an employee earning £25k costs approximately £30,614. For executives, turnover costs can soar to 213% of their annual salary.
• Productivity lag: It takes a new hire an average of eight months to reach full productivity. When an experienced staff member leaves, they take valuable "institutional knowledge" with them.
• The morale "chain reaction": High turnover creates job insecurity, leaving remaining staff overworked and more likely to burn out.

The interconnected link: Engagement vs. Retention

Employee engagement and retention are intrinsically linked, you cannot have one without the other. Engagement is the driver and retention is the result;

• 92% of business executives believe engaged employees perform better.
• Engaged employees are 59% less likely to look for a new job in the next 12 months.
• Highly engaged workplaces see a 41% reduction in absenteeism and a 17% increase in productivity.

Why do employees leave? [Employee retention drivers]

Understanding why people quit is the first step to making them stay. Common "push" factors include:

• Lack of recognition: 79% of Gen Z and Millennial professionals say an increase in recognition would make them more loyal. When employees feel their effort goes unnoticed, they are twice as likely to leave.
• No room for growth: Workers who see no clear career path will seek development elsewhere.
• Inefficient technology: Inefficient processes waste up to 26% of an employee's day. Furthermore, 16% of Gen Z and Millennial workers have actually quit a job because of poor workplace technology.
• Poor work-life balance: 46% of people cite work-life balance as the main driver of their happiness. If policies aren't flexible, burnout is inevitable.
• Weak relationships: Work is social. If employees don't feel connected to their peers, their "bond" to the company weakens.

10 strategies to improve employee retention and engagement

1. Modernise your onboarding

First impressions last. 69% of employees who experience great onboarding are likely to stay for at least three years. Use your intranet to provide a seamless, digital introduction to company culture and key documents.

2. Prioritise employee wellbeing

Mental health difficulties are the leading cause of sickness absence in the UK. A proactive strategy should cover the "Seven Pillars of Wellbeing," including mental, physical, and financial health.

3. Implement recognition software

Move beyond the "annual bonus." Use a social timeline or a dedicated recognition system to celebrate birthdays, work anniversaries, and daily "wins." This fosters a culture of appreciation in real-time.

4. Offer true flexibility

Flexible working is no longer a perk; it's an expectation. Whether it’s flexitime, compressed hours, or remote work, giving employees autonomy over their schedule reduces stress and increases loyalty.

5. Create a career progression path

Don't let your talent stagnate. Provide clear "growth maps," professional development budgets, and internal promotion opportunities to keep ambitious employees motivated.

6. Invest in an employee referral scheme

Referrals are often a better cultural fit. Research shows that 46% of referred hires stay for at least a year, significantly higher than those found via job boards.

7. Gather continuous feedback (pulse surveys)

Don't wait for an exit interview to find out what's wrong. Use Pulse Surveys to gather real-time insights into morale and act on them immediately.

8. Streamline communication with an Intranet

Misalignment causes turnover. A central intranet ensures that "deskless" and remote workers receive the same information as those in the office, creating a unified workforce.

9. Build social hubs & communities

Encourage interaction that isn't just about "the job." Creating hubs for common interests (e.g., fitness, photography, or social planning) builds the interpersonal bonds that keep employees rooted in a company.

10. Offer competitive salaries & benefits

While culture is king, your compensation must remain competitive. Regularly audit your salary brackets and benefits packages to ensure they align with current industry standards.

How an Intranet can help with employee retention

A modern intranet like Oak acts as the "digital glue" for your retention strategy:

• Search functionality: Stops employees from wasting time looking for documents, reducing frustration.
• Pulse surveys & polls: Gives every employee a voice and provides leadership with actionable data.
• Mobile accessibility: Vital for the 75% of the workforce who will be Millennials/Gen Z by 2025, allowing them to stay connected from anywhere, as well as frontline and deskless workers.
• AI personalisation: Content that automatically adapts to user preferences and requirements, no need for admin... just an intranet that adapts to your departments and teams preferences.
• Integrations: Employees can access all the tools and apps they need, straight from your intranet.

Ready to boost your retention rates? Book a demo with Oak today to see how our tools can transform your employee experience and keep your best talent right where they belong.