Building Wealth & Retaining Talent: A Guide for Smart Businesses
Retaining top talent can feel like a constant challenge, especially when large corporations offer bigger salaries and perks. The good news? Smaller businesses have a unique advantage: they can create a workplace where employees feel seen, valued, and invested in—something money can’t always buy.
Why Does Retention Matter?
Consider these stats:
Turnover is expensive - Replacing an employee can cost 50-60% of their annual salary, with total turnover costs reaching 90-200% when factoring in lost productivity and training (Gallup).
Employees leave bad cultures, not just bad jobs - 70% of employees say they’d leave a company for a competitor that offers better workplace culture and development opportunities (LinkedIn).
Loyal employees drive revenue - Businesses with high employee engagement report 23% higher profitability than those with low engagement (Gallup).
How to Retain Your Best People Without Blowing Your Budget
1. Hire Right from the Start
Retention starts with hiring. Look for employees who align with your company’s mission, values, and culture—not just those with the right skills. Using tools like behavioral assessments can help ensure a great fit.
2. Pay Fairly (and Get Creative with Perks)
While you may not be able to match corporate salaries, you can offer meaningful benefits like:
Flexibility (remote work, flexible hours)
Professional growth (coaching, cross-training, mentorship)
Wellness support (gym memberships, mental health resources)
Bonuses tied to performance or company success
3. Prioritize Leadership & Communication
Employees don’t leave jobs—they leave bad managers. Train your leaders to listen, communicate clearly, and provide ongoing feedback. A simple 1:1 check-in every two weeks can significantly boost retention.
4. Recognize & Reward Often
A survey by O.C. Tanner found that employees who feel recognized are 5x more likely to stay. Small businesses can win here by personalizing recognition: handwritten notes, public shout-outs, or small gifts go a long way.
5. Build a Culture of Purpose
Today’s workforce craves meaning in their work. Help employees connect their roles to the bigger picture by sharing company successes, involving them in decisions, and showing how their contributions make an impact.
Retention doesn’t have to be complicated. With a little intention and a lot of heart, small businesses can create workplaces where employees choose to stay and grow.
What’s one small change from the above list you can make this month to improve retention in your business? If you’d like help building a retention strategy that works for you, let’s chat!
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