In 2025, no one seems to be worried about quitting employees. Instead, the attention has heavily centered around ways to get rid of them faster instead of actively working on employee retention. Keeping good employees long term once used to be a matter of pride, but with the precarious economy balanced on a knife’s edge, the art of retaining top talent has slipped off into obscurity.
Under these trying times, it’s understandable that businesses are having to make tough decisions on cutting jobs rather than creating them, but keeping top performers around is still extremely important. Employee attrition is low because workers are scared of the state of the job market right now, but working scared is not an ideal long term solution.
At the first sign of an alternative, employees will spring away to greener pastures, and you’ll be left with an understaffed, underperforming workforce. Despite the current work climate, we think you should be working on employee retention and engagement strategies with renewed vigor.
Active employee retention is the key to ensuring that workers stay out of choice not out of obligation. (Image: Pexels)
Understanding Employee Retention in 2025—Where Do We Stand?
Keeping in line with the “Great Stay” trend, workers are choosing to remain at their jobs, regardless of how low their job satisfaction is. There is a stifling atmosphere around the workspace, where employees are sitting on the edge of their seats, worried they’ll be asked to vacate it any second.
A new report from Eagle Hill Consulting’s Employee Retention Index found that there has been a slight increase in their index numbers for the first quarter of 2025, indicating that employees are likely to stay in their jobs for the next six months. The report found that there has been a slight increase in confidence in employers and satisfaction with work, but their faith in the job market continues to dip.
Contrary to popular belief, the report also found that Gen Z workers were least likely to leave their jobs in the coming months. The likelihood of quitting was found to be higher among millennials, which makes sense considering they are more likely to find work if they do quit. The general sentiment around hiring Gen Z is particularly negative.
Why Should Employers Work Towards Retaining Top Talent?
This trend of low employee attrition is great news for most employers, as it means that they get the upper hand over employees to set the work standards and regulations without having to deal with too much resistance. However, if the employee retention isn’t voluntary, then it isn’t going to continue to last for long nor reap the kind of results you need for a thriving business.
Employers need to realize that the tides could turn just as quickly, with employees who are burnt out from the stress or those who know they can do better quitting to find work elsewhere. There’s always a competitor out there who can offer better pay and benefits so its important to treat workers well, regardless of the reason why they choose to stay.
Small businesses that work on retention will be particularly fortunate as it is always hard to keep employees from leaving to bigger and better opportunities. The more small businesses invest in employee engagement strategies, the more likely it is that employees continue to stay on after the heavy veil of the economic climate lifts in coming months.
Working on Workforce Retention Is in Everyone’s Best Interests
The shaky job stability trends show that not all employees are staying on at work due to an interest in their jobs. This has always been the case as most employees are justifiably there for the paycheck, however, it doesn’t hurt to make an effort to make their workday less stressful.
Simple employee retention and engagement strategies can change the mood at work and ensure that workers who do come in, do so with a clear head and a goal of getting things done. Their passive presence is counterproductive for them as well as the employer.
There are a few different ways for large and small businesses to improve employee retention:
- More open communication between employer and employees
- Regular check-ins with managers, not just on tasks but on how employees are coping as well
- Providing health benefits or other employee wellness programs to mitigate the effects of stress
- Financial education and awareness programs to help employees put their money to good use and save for the future
- Demonstrating good leadership to inspire confidence among workers
- Providing regular training and upskilling programs where employees can continue to learn and do better
- Establishing a cohesive and welcoming work culture where all employees are treated equally
- Being flexible and understanding of the employees situation so a solution can be found together
There are only examples of what employers can do to improve active employee retention in the workplace. Employers who want to tailor their approach to their specific workforce can survey employees and understand their needs, providing them with the support they need to grow together.