By Lisa Smith, Senior Partner

Discover three proven employee retention strategies from leadership expert Lisa Smith. Learn how personalized recognition and genuine care keep top talent engaged.

In today’s marketplace, retaining skilled employees requires more than providing competitive wages and benefits. Gallup research continues to show that replacing an employee can cost anywhere between 50% to 200% of their annual salary, making retention a critical financial imperative for every organization. The most successful companies understand that meaningful recognition and genuine care for their people create the foundation for long-term retention.

Top 3 Essential Strategies for Keeping Your Best Employees Engaged and Committed

1. Ask Employees How They Like to Receive Recognition 

Recognition isn’t one-size-fits-all, it’s one-size-fits-one. Research from the O.C. Tanner Institute found that 37% of employees say that personal recognition is most important to them, yet many managers rely on peanut butter spread approaches that miss the mark. 

Consider this example: after going through a leadership development program, a manager decided to schedule 1:1 “recognition preference” conversations with her team. One of the questions she asked was, “Tell me about a time in your career when you were recognized for something and you really appreciated it”. Through these discussions, she discovered that her top performer, who she’d been praising during team meetings, actually felt embarrassed by the spotlight and much preferred some sort of private acknowledgement (e.g. text, email, handwritten note, 1:1 interaction). In contrast, another team member LOVED public recognition, so she decided to provide their praise during team meetings, via the group’s Teams Channel, and in emails to senior leaders. Others on the team said tangible rewards like gift cards or spot bonuses, extra time off or professional development opportunities mattered more to them. By adjusting her approach, she saw a significant jump in team engagement scores within just a few months. 

According to Workhuman, recognition drives a 32% increase in employee performance when combined with feedback and incentives, but only when that recognition aligns with what they actually value. The key is simple: ask your employees about their preferences. 

2. Take the Time to Understand What Motivates Them 

Beyond recognition preferences, understanding what drives each employee at a deeper level is crucial for retention. Qualtircs found that “52% of workers would be willing to take a pay cut to work at a company that has values better aligned with their own.” Ask: What types of projects and tasks energize you? What skills do you want to learn? What are your career aspirations? These insights allow you to create opportunities that align with their personal and professional goals. 

Take the case of a technology team lead who noticed a direct report becoming more and more disengaged. Rather than assuming the employee wanted a promotion or more money, he took time to ask about her motivations. He learned she was passionate about teaching and mentoring but didn’t want to give up the more technical hands-on aspects of her job. In partnership with HR, they were able to create a hybrid role where she could lead technical training workshops while remaining hands-on with technology troubleshooting. She stayed with the company for several more years and became one of their best people developers. This personalized approach demonstrated investment in her growth and created a compelling reason for her to stay. 

3. Show Them You Care 

Perhaps the most powerful retention strategy is also the most fundamental: genuinely showing your employees that you care about them as people, not just as producers of work products. This means acknowledging that they have lives, challenges, and identities beyond their job responsibilities. According to the American Psychological Association, 89% of workers in companies that support well-being initiatives are more likely to recommend their company as a good place to work.. 

Showing genuine care can take a variety of forms. I like to put private reminders in my calendar of team member birthdays, work anniversaries, and major life events, then post a congratulatory note in our Teams channel to get others to chime in on the celebration. Sending personalized notes that reference specific contributions and expressing sincere appreciation for who they are as individuals goes a long way. Caring for associates might mean flexing team schedules when they face a family emergency or checking in on their wellbeing during stressful periods (personal or professional). It could also involve protecting their time from unnecessary meetings or finding creative ways to support their work-life balance while maintaining fairness across the team. These actions communicate respect and empathy, creating commitment and loyalty that beats out what any competitor could offer through compensation alone. 

The Bottom Line 

Employee retention isn’t about grand gestures or expensive programs. It’s about consistent, thoughtful, day to day actions that demonstrate you value your people as individuals. When employees feel recognized in ways that matter to them, when their work aligns with what motivates them, and when they know leadership genuinely cares about their wellbeing, they’re significantly more likely to stay. So, take the time to connect with your staff regularly about recognition, what drives and motivates them, and how you can support their wellbeing. You will create a workplace culture where employees want to stay, grow, and contribute their best work. In the end, companies and leaders that prioritize these human-centered strategies will be the ones that retain top talent and thrive well into the future. 

Contact Keystone Partners today to learn how we can support your employee recognition and retention efforts!