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How to Retain Employees Without Spending Money


You spend countless hours and dollars interviewing and onboarding new talent for your company. So when you hire a great fit, you want to do everything possible to retain them for the long term. If you don’t, hiring a replacement can cost as much as 33 percent of a worker’s salary – plus, it can start affecting your company’s reputation as an employer.


With today’s competitive job market and shrinking talent pool, you can’t afford to lose your best people. That doesn’t mean you have to go offer salary increases for all of your employees. Many workers, particularly millennials, are interested in more than just money when it comes to having a job they love. For example, flexible work hours, remote working and opportunities for growth are all valuable perks of a workplace.


Here’s how to retain employees without spending money.


1. Offer Positive Feedback

Hearing praise from leaders means a lot to employees. Recognizing positive efforts (and noticeable improvements) can motivate staff to continue trying their best. Anytime you notice some outstanding performance by one of your team members, make sure you address it with them. Consider sharing their achievement with the rest of the team at the next staff meeting to show everyone that you notice and appreciate employee dedication.

2. Improve Communication

Building a solid communication channel between you and your team can contribute to better employee retention. This can be as simple as organizing a casual coffee chat each morning for your team. Maintain a smooth flow of conversation and make everyone feel welcome.


Effective communication helps build stronger organizations. By having open communication with company leaders, employees may feel more comfortable approaching leadership with issues – rather than moving on to another job opportunity.


3. Have Fun at Work

Low-key, fun team-building activities offer the chance for employees to get to know each other in a non-work environment. Doing something outside of the office can also help release work stress and encourage co-worker bonding. Ask for feedback from employees about what type of activities they prefer or plan athletic competitions or theme days. As the leader, make sure you participate as well and use this opportunity to form valuable relationships.


4. Be Transparent

Your company likely has an external communications strategy, but what about an internal one? Regularly engage with your workforce and provide them with the company information they need to help them thrive. Share the latest company news, benefits and company achievements. Small failures are also important to communicate and provide an opportunity to brainstorm ways to improve in the future. Be honest with your company vision, and target the right message for the right employee group at the right time.


5. Make the Environment Challenging

Many employees move on because they’re looking for a new challenge. Before boredom can set in, try making work more productive. Give employees projects and training courses that let them learn new skills and work harder. Do whatever you can to avoid work getting monotonous – don’t let your employees practice the same routine every day!


The Bottom Line

Retaining your employees isn’t always easy, but it doesn’t always need to cost your organization money, either. Making work more enjoyable, recognizing employee achievements and improving company communication are great ways to keep staff from leaving.


Interested in learning more ways to deal with obstacles and challenges at your organization? Book a complimentary 30-minute consultation with us to learn how our leadership coaching solutions produce extraordinary results.

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