Employee Retention: 21 Strategies + 40 Survey Questions

A shift manager trains for three months, becomes excellent at the job, then quits. The reason? Poor scheduling, no recognition, a manager who never asked what they needed to stay.

The cost to replace a $50K/year manager can easily reach $40,000-$75,000 (applying the verified 80-150% replacement cost range). Multiply that by multiple departures, and you’re losing hundreds of thousands annually.

This story repeats itself millions of times every month in workplaces across America. The companies that fix it save hundreds of thousands. The ones that don’t watch their best people walk out the door—taking expertise, customer relationships, and team morale with them.

What Is Employee Retention?

Employee retention is the ability of an organization to keep employees over time. It’s typically measured as a percentage of employees who remain employed during a specific period (monthly, quarterly, or annually). High retention rates indicate that employees are satisfied, engaged, and committed to staying. Low retention rates signal high turnover, which can be costly and disruptive.

Employee retention is a key indicator of organizational health, culture, and the effectiveness of talent management strategies. Companies with strong retention save money on recruiting and training, maintain institutional knowledge, and build stronger, more experienced teams.

💡 Quick Answer

Employee retention measures how well a company keeps its employees over time. High retention means people stay; low retention means frequent turnover. Good retention saves money and builds stronger teams.

📊 At a Glance

• Good retention: 85%+ in professional roles, 60%+ in retail/hospitality
• Warning signs: Losing top performers, high first-year turnover, exit interviews cite same issues
• What it costs: $25,000–$100,000 per departed employee
• What it saves: Strong retention = lower recruiting costs, stronger teams, better customer service

How Do You Calculate Employee Retention Rate?

🎯 Why This Matters

You can’t fix what you don’t measure. Calculate your retention rate monthly to catch problems early—before your best people start updating their LinkedIn profiles.

Basic Retention Rate Formula

Retention Rate = (Number of employees at end of period / Number of employees at start of period) × 100

Example:

• Start with 100 employees on January 1
• End with 90 employees on December 31
• Retention rate = (90 / 100) × 100 = 90%

Adjusted Retention Rate (Excludes New Hires)

If you want to focus on existing employees, exclude those hired during the period:

Retention Rate = [(Employees at end − New hires) / Employees at start] × 100

Example:

• Start with 100 employees
• End with 95 employees
• Hired 10 new employees during the year
• Retention rate = [(95 − 10) / 100] × 100 = 85%

This formula measures how many of your original employees stayed.

Retention by Cohort or Department

Calculate retention separately for:

• Departments or teams
• Job levels (entry-level, management, executive)
• Tenure cohorts (first-year employees vs. 5+ year veterans)
• Demographics (to identify equity issues)

This reveals where retention problems are concentrated.

Retention Rate vs. Turnover Rate

Retention rate: % of employees who stay Turnover rate: % of employees who leave

Turnover Rate = (Number of separations / Average number of employees) × 100

If your retention rate is 85%, your turnover rate is approximately 15%.

What’s a Good Employee Retention Rate?

🔍 What the Numbers Really Mean

Your Retention Rate	What It Means	What to Do
90%+	Excellent retention	Maintain current practices, document what works
75–89%	Solid retention	Monitor trends, address department hotspots
60–74%	Concerning	Conduct exit interviews, identify root causes
Below 60%	Crisis mode	Immediate action needed—likely losing money fast

Industry Benchmarks

Retention rates vary widely by industry:

• High-retention industries: Government, education, utilities (85–90%)
• Mid-retention industries: Healthcare, manufacturing, finance (65–75%)
• High-turnover industries: Retail (~40% retention), hospitality & restaurants (~25% retention), call centers (55–70%)

Note: Shift-based and hourly roles typically have lower retention than salaried professional positions. Based on 2025 BLS JOLTS data and BambooHR 2025 turnover benchmarks, actual rates vary significantly by company size, location, and specific role.

Compare Within Your Industry

Benchmark your retention against similar companies in your industry and region. If your rate is significantly lower, investigate why.

Aim for Continuous Improvement

Rather than fixating on a single “good” number, focus on improving year-over-year and reducing regrettable turnover (losing high performers or key talent). Track your own trends for more meaningful insights.

48 Survey Questions to Measure Satisfaction

You can’t fix retention without knowing what’s broken. These survey questions uncover the problems driving people out — before they hand in their notice.

🎯 How to Use These Questions

Can’t ask all 48? Start with these 5 core questions:

• #1 (Overall satisfaction)
• #11 (Manager support)
• #21 (Growth opportunities)
• #26 (Workload)
• #41 (Schedule predictability)

How to score (1–5 scale):

• Below 3.0 = Red flag, urgent action needed
• 3.0–3.9 = Room for improvement
• 4.0+ = Maintain what’s working

Lowest-scoring questions are your first priorities to fix.

Overall Satisfaction (5 questions)

1. How satisfied are you with your job overall?
2. I would recommend this company as a great place to work
3. I see myself still working here in 2 years
4. I am proud to work for this company
5. This company values my contributions

Compensation & Benefits (5 questions)

6. My compensation is fair for my role and experience
7. I am satisfied with my benefits package
8. I understand how my pay is determined
9. I feel financially secure in this role
10. The company offers competitive compensation compared to similar employers

Management & Leadership (8 questions)

11. My manager supports my professional growth
12. I receive regular, helpful feedback from my manager
13. My manager recognizes and appreciates my work
14. I trust my direct supervisor
15. Senior leadership communicates a clear vision
16. I have confidence in the leadership team
17. My manager treats me with respect
18. Issues are addressed quickly and fairly by management

Work-Life Balance (5 questions)

19. I have a healthy work-life balance
20. My workload is manageable
21. I can take time off when I need it
22. My schedule is predictable and reasonable
23. I don’t feel burned out

Career Development (5 questions)

24. I have opportunities to learn and grow
25. There is a clear path for advancement here
26. I receive training to improve my skills
27. The company invests in employee development
28. I feel challenged in a positive way

Resources & Tools (4 questions)

29. I have the tools and equipment I need to do my job well
30. Our technology and systems are effective
31. My workspace is comfortable and functional
32. I have access to the information I need

Culture & Teamwork (5 questions)

33. I feel like I belong here
34. My coworkers are supportive and collaborative
35. The company culture aligns with my values
36. Diversity and inclusion are priorities here
37. I feel psychologically safe at work

Communication (3 questions)

38. Communication within the company is clear and effective
39. I am informed about changes that affect me
40. I feel comfortable sharing my opinions

Scheduling & Shift Work (8 questions)

These questions are specifically for shift-based and hourly teams — the issues most generic surveys miss:

41. My schedule is posted far enough in advance for me to plan my life
42. Shifts are distributed fairly across the team
43. I can request time off or swap shifts without difficulty
44. I feel my availability preferences are respected
45. Overtime is distributed fairly and not forced without notice
46. Break times are adequate and consistently honored
47. I know my schedule at least 2 weeks in advance
48. I’m not penalized for using my time-off benefits

Employee Net Promoter Score (eNPS)

One additional question that tracks overall sentiment over time:

“On a scale of 0–10, how likely are you to recommend this company as a place to work?”

• 9–10: Promoters (highly satisfied)
• 7–8: Passives (neutral)
• 0–6: Detractors (dissatisfied)

eNPS = % Promoters − % Detractors. Track monthly for trends.

21 Employee Retention Strategies That Work

💼 Example Success Story

A mid-sized company went from 45% retention (losing half their team yearly) to 87% retention in 18 months by: (1) training managers on giving feedback, (2) posting schedules 3 weeks in advance, and (3) recognizing achievements in weekly meetings. Low-cost changes that produced massive results.

Here are proven tactics to keep your best team members:

⚡ Start Here (Quick Wins)

If you can only do 3 things this quarter:

1. #7: Recognize publicly [No cost, immediate impact]
2. #17: Predictable schedules [Low cost, massive satisfaction boost]
3. #10: Stay interviews [Free, prevents surprises]

Compensation & Benefits

1. Benchmark salaries annually [High Impact 💰] against industry standards and adjust for inflation
2. Offer competitive benefits [High Cost] beyond salary (health, dental, 401k matching, PTO)
3. Provide retention bonuses [Medium Cost] for key employees or after reaching tenure milestones
4. Implement profit-sharing [High Impact] to give team members ownership in success

Career Growth

5. Create clear promotion paths [Quick Win ⚡] so employees see their future with you
6. Offer tuition reimbursement [Tax Benefit] for job-related education ($5,250/year is tax-free)
7. Provide regular skills training [Medium Cost] through workshops, courses, or conferences
8. Assign stretch projects [No Cost] that challenge and develop high performers

Management & Leadership

9. Train managers in people leadership [High Impact 💰], not just technical skills
10. Hold stay interviews [No Cost ⚡] with current employees before they consider leaving
11. Conduct exit interviews [No Cost] and actually fix the patterns you discover
12. Measure manager retention rates [No Cost] and hold them accountable

Recognition & Culture

13. Recognize achievements publicly [No Cost ⚡] in team meetings and company channels
14. Implement peer-to-peer recognition [Low Cost] (Bonusly, kudos boards, spot bonuses)
15. Celebrate work anniversaries [Low Cost] with meaningful acknowledgment
16. Address toxic behavior immediately [No Cost 💰]—one bad apple ruins retention

Work-Life Balance

17. Provide predictable schedules [No Cost ⚡] with 2+ weeks advance notice (critical for shift workers)
18. Allow schedule flexibility [No Cost] (shift swaps, remote options, flexible hours)
19. Enforce PTO usage [No Cost]—don’t let employees burn out without taking time off
20. Set realistic workloads [No Cost] and adjust when teams are stretched too thin

Onboarding & Feedback

21. Perfect your first 90 days [High Impact 💰]—new hire retention starts with great onboarding

Learn more: Digital Onboarding

The Strategy That Matters Most

According to Gallup research, having a great manager is the single biggest factor in retention. Employees don’t leave companies—they leave managers. If you can only focus on one thing, invest in management development.

⚠️ The Cost of Inaction

What happens if you ignore retention:

• Constant recruiting drains your time and budget
• Remaining employees burn out covering open shifts
• Customers notice declining service quality
• Your best people leave for competitors who do invest
• Training new hires becomes your full-time job

The reality: It’s cheaper to keep good employees than to constantly replace them. One retained manager is worth five recruitment cycles.

Measuring the Impact of Retention Efforts

Track these metrics to assess whether your retention strategies are working:

Retention Rate Over Time

Monitor trends monthly, quarterly, and annually. Look for improvements after implementing changes.

Turnover by Department or Manager

Identify hotspots where turnover is highest. This helps target interventions.

Tenure Distribution

Track the average tenure of employees. Longer average tenure indicates stronger retention.

Cost per Hire and Time to Fill

If retention improves, these recruiting metrics should also improve as you hire less frequently.

Employee Satisfaction Scores

Survey scores should correlate with retention improvements. If satisfaction rises, retention typically follows.

Exit Interview Themes

Track reasons for leaving over time. Declining complaints about pay, management, or culture suggest progress.

What’s the Bottom Line?

Employee retention starts with measuring satisfaction and acting on what you find. The 48 survey questions above tell you where problems are. The 21 strategies tell you how to fix them.

Key points:

• Measure first: Use survey questions (especially the 8 shift-work questions) to find out what’s actually driving people out
• Calculate your rate: Retention Rate = (Employees at end / Employees at start) × 100. Below 60% means you’re losing money fast
• Fix the biggest gaps: Low-scoring survey areas are your highest-ROI improvements
• Predictable scheduling matters: For shift teams, schedule predictability is often more important than pay
• Track monthly: Don’t wait for annual surveys. Pulse surveys and eNPS catch problems early

Investing in retention saves money, strengthens teams, and creates workplaces people don’t want to leave.

Looking for tools to improve scheduling and retention? ShiftFlow’s time tracking provides predictable schedules with advance notice, digital timesheets eliminate pay disputes that drive people out, and workforce insights help identify retention risks before your best people leave.

Sources

• Society for Human Resource Management – HR Resources
• Gallup – Workplace Research
• Work Institute – Retention Report
• Harvard Business Review – Management Resources

Further Reading

• Employee Turnover – Understanding why employees leave
• Employee Evaluation – Performance management and development
• Digital Onboarding – Getting first 90 days right

Frequently Asked Questions

What is employee retention?

Employee retention is the ability of an organization to keep employees over time. It’s typically measured as a percentage of employees who remain employed during a specific period. High retention indicates employees are satisfied and engaged; low retention signals turnover problems.

How do you calculate employee retention rate?

Retention rate = (Number of employees at end of period / Number of employees at start of period) × 100. For example, if you start with 100 employees and end with 90, your retention rate is 90%.

What are the top reasons employees leave?

Common reasons include low pay, lack of career growth, poor management, lack of recognition, burnout, better opportunities elsewhere, poor work-life balance, toxic culture, and lack of flexibility. Exit interviews help identify specific patterns.

What’s a good employee retention rate?

It varies by industry. Government and education often see 85–95% retention. Healthcare and finance average 75–85%. Retail and hospitality often fall below 75%. Compare your rate to industry benchmarks and aim for continuous improvement.

How can I improve employee retention?

Key strategies include competitive pay, career development opportunities, strong managers, regular recognition, work-life balance, positive culture, open communication, effective onboarding, flexibility, and acting on employee feedback.

What’s the difference between retention and turnover?

Retention measures the percentage of employees who stay. Turnover measures the percentage who leave. If retention is 85%, turnover is approximately 15%. They’re inverse measures of the same thing.

How much does it cost to replace an employee?

Industry research suggests replacement costs typically range from 50–200% of an employee’s annual salary, depending on the role. Costs include recruiting, interviewing, onboarding, training, lost productivity, and manager time. High retention avoids these repeated costs.

Should I worry about all turnover?

No. Some turnover is natural and even healthy (retirements, voluntary moves for personal reasons, low performers leaving). Focus on reducing regrettable turnover—losing high performers or key talent you wanted to keep.

How do you measure employee satisfaction?

Through surveys (annual, pulse, or exit), one-on-one conversations, eNPS scores, and metrics like turnover rate and absenteeism. The 48 survey questions in this guide cover overall satisfaction, compensation, management, scheduling, and culture. For shift teams, add questions about schedule predictability, shift fairness, and overtime distribution.

Can you improve satisfaction without raising pay?

Yes. Many satisfaction drivers are non-monetary: recognition, growth opportunities, supportive management, predictable scheduling, and positive culture. For shift workers specifically, schedule predictability and fairness often matter more than pay increases.