Hiring & Recruiting

Management & Leadership

Resources

Culture, Engagement, and Retention: Building a Workplace Where People Thrive 

In today’s competitive and often uncertain hiring landscape, retaining top talent has become more than a priority—it’s a strategic imperative. As disengagement rises and employee expectations evolve, organizations must rethink how they foster culture, drive engagement, and ultimately retain their workforce.

The Retention Challenge 

According to Gallup, only 31% of U.S. employees were engaged in 2024, marking the lowest level in a decade, while 17% were actively disengaged. This troubling trend has been accelerated by the pandemic and shifting generational values. Engagement isn’t just a buzzword—it’s a business driver. Companies with high engagement see 18% more productivity and 23% more profitability.

So how do you build a workplace that people don’t want to leave?

1. Culture of Caring and Inclusion

A strong culture starts with care. Employees who feel safe, valued, and supported are more likely to stay. Yet only 39% of employees feel strongly that someone cares about them, and just 30% agree someone encourages their development.

To improve this, organizations should:

  • Prioritize psychological safety and well-being 
  • Encourage community involvement and giving back 
  • Create inclusive spaces through employee resource groups and shared-interest programs 

When people feel they belong, they’re more likely to engage and contribute meaningfully.

2. Purpose-Driven Work

Purpose is a powerful motivator. Employees who understand and connect with their organization’s mission are more productive and fulfilled. In fact, according to Forbes, 73% of employees at purpose-driven companies report high job satisfaction.

Make your company’s purpose visible and actionable. Align individual roles with broader goals to foster meaning and motivation.

3. Fair Compensation and Competitive Benefits

Retention starts with meeting basic needs. Ensure salaries are aligned with local market rates and offer benefits that reflect the evolving needs of your workforce—think mental health support, flexible schedules, and wellness programs.

Companies with wellness programs report a 20% increase in productivity and 16% boost in employee satisfaction.

4. Growth and Development Opportunities

Career development is key for retention rates: 93% of employees say they would stay longer at companies that invest in their growth. Companies may consider offering:

  • Learning and development programs 
  • Clear career paths 
  • Mentorship and coaching 

When employees see a future with your organization, they’re more likely to stay and thrive.

5. Trust and Transparency

Trust is the foundation of engagement. It’s built through clarity, consistency, and open communication—not perks. Yet only 46% of employees clearly know what’s expected of them.

Employees who trust their leaders are more resilient, collaborative, and committed. Trusted employees require less oversight and take pride in their work and the organization.

Retention isn’t about one-time fixes—it’s about creating a culture where people feel connected, cared for, and empowered. By investing in purpose, growth, and trust, organizations can turn disengagement into thriving engagement—and build workplaces where people want to stay.