Top 5 Strategies to Improve Employee Retention for Small Businesses

Finding good candidates and hiring the right employees is a difficult task, but keeping them at your organization for a long time is even more difficult. When it comes to small businesses, a large number of employees come and go and hardly any of them stay for long. In most cases, work experience at a small organization is a stepping stone for your employees.

There could be several reasons why your employees are leaving and you are always looking for new talent. Some of the most common reasons for employees to resign are feeling overworked, inadequate salary/benefits, unhappy with management, dissatisfaction with company culture, etc. Keeping your employees happy and satisfied with their current workplace is essential and here are few strategies that can help you improve employee retention in your organization.

Effective Communication

Fostering an open work environment where there is fluid communication between employees, teams as well as managers will not only make the employees happy but will also increase their quality of work. Having a hierarchical system where employees cannot easily communicate with their seniors will affect their work as well as morale. Establishing effective communication is the most basic strategy to improve employee retention and management.


Small businesses often lack work hour flexibility. According to a survey conducted, the majority of employees prefer to work at a place where work hour flexibility is provided. By providing your employees work hour flexibility, you are boosting employee morale and loyalty. If feasible, hire performance management consulting services to observe your employee growth. For example, if the job profile is such that working remotely is possible, then as a performance reward, you can allow your employee to work remotely on the day of their choice.

Employee Health

Sure! Usually, business owners are supportive of employees taking sick leaves but that is not enough. If feasible, provide your employee health insurance and if you can’t, then at least guide them through the health insurance marketplace. Another strategy that is easy to implement is providing them with few mental health days annually. Giving importance to employee’s mental health will make your employee realize you care for them resulting in employee retention.

Space for Personal Growth

If your employee is just doing the daily mundane work that is assigned to them, at some point they will get bored and decide that they need change. But before that happens, offer them the change they need i.e., personal growth. Offer them weekly training and offer them educational courses, or tuition reimbursement for job-related courses/degrees. Encouraging them to learn new things and rewarding them for personal growth will foster good relationships and employee retention shall follow.

Respect & Recognition

According to research conducted in 2021, the majority of employees feel undervalued and unappreciated for their work. People want to be respected and recognized for their creativity and performance. Appreciate their time spent on the organization and ask for their opinions and values. Implement the changes they suggest if they are good and announce that it was their idea. This way, they will get the respect and recognition they deserve and you can improve employee retention.


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