CareerPlug research found that dissatisfaction with current compensation was the number one reason employees leave their jobs, which probably doesn’t come as a surprise. 

But for many business owners, money is tight. You want to retain your team, but your budget is spread thin, and it’s simply not possible to offer raises across the board right now. 

Let’s assume you’re already paying your staff a reasonable wage for your area. (You can use the salary calculator on GlassDoor to confirm.) If you are, but you’re still experiencing turnover, what else can you do to retain your team? 

Fortunately, there are employee retention strategies that don’t involve offering a compensation increase:

1. Assess your benefits package. 

53% of employees that are unsatisfied with their pay said they would accept additional benefits instead of a pay increase from their current employer. This suggests that an increased investment into benefits could help in retaining about half of employees who otherwise feel their compensation is lower than they’d like.

I know, I know. We already talked about money being tight, and benefits can be expensive. However, not all benefits have to be a large investment for your business. Can you offer more time off? How about paying for lunch one Friday a month? 

It is a good idea to offer the standard benefits like health insurance and retirement options, but if you’re looking for additional ways to retain your team, getting creative with other benefits can help.  

2. Promote from within. 

The opportunity for growth is a huge factor for both job seekers and employees. Being able to share examples of how you promoted from within will win job seekers over and foster loyalty among your team. There are other benefits to this as well. Internal hiring reduces recruitment costs and decreases onboarding time. 

Here are some tips for identifying and promoting internally: 

• Post open positions within the company first, before sharing publicly. This gives interested employees an opportunity to apply and shows you who on your team is motivated to move up. 
• Look at performance reviews and manager feedback to see which employees are performing at a high level. You or your managers may already have had conversations with employees that have expressed interest in their career growth within the company. 
• Notice which employees voluntarily take on growth opportunities. Are there any people among your team always looking to learn, train, or take on new responsibilities? 

Giving motivated employees the opportunity to move up in your company, shows that you want to offer them a career – not just a job. This is one of the most important things you can do for retention. As Clint Smith, CEO & Founder of CareerPlug, shares: “The commitment level is low for employees just looking for a job, but if they feel like someone is investing in their career, they’re going to think twice about jumping ship.” 

3. Build a strong company culture and connect employees to your mission.

There are many things that keep employees engaged and connected to a company. And that connection plays a big role in their success and tenure. 

A strong company culture is part of a great retention strategy. This starts as early as in the hiring process, by helping you find the right people that align with your mission and values. From there, employees that feel connected to the culture are more likely to stay. 

In a positive company culture, managers share the company’s vision authentically. Managers are supportive, and show gratitude to employees. They help them be problem-solvers and involve them in decision making. They create a safe and comfortable working environment where employees are set up to succeed. And the best part? This strategy only costs an investment of time – and can save you the cost of turnover. 

4. Cultivate employee engagement. 

A connection to your company culture also plays an important part in how engaged your employees are. Engaged employees are connected to their work and their teammates and dedicated to reaching their goals. 

“Employee engagement” can feel a little like one of those HR buzzwords. But what does it actually mean to engage employees, especially those frontline and hourly workers who are so hard to retain? 

One thing employers can do is simply make sure employees have the technology and resources they need to do their jobs. Employees need to be thoroughly trained on all systems and given the tools they need to be successful. 

Additionally, deskless employees and employees in high turnover industries like restaurant and food service, often feel that they have a lack of community. 80% of frontline employees report that they have few connection opportunities at work. 

Give employees opportunities to connect with one another through work-sponsored events and resource groups. Having one platform for employees to communicate can be helpful too. Whether it’s digitally, like a workplace communication platform, or physically, like a bulletin board in the break room, give employees a place to leave messages, post event reminders, and connect with their teammates. 

5. Offer work-life balance.  

You know it, I know it, your employees know it. A poor work-life balance will inevitably lead to burnout, overwhelm, and eventually turnover. Employees need proper breaks, flexibility in scheduling, and paid time off. 

If it’s possible for your business, allow employees to have a say in their schedule, or easily be able to swap shifts with other employees. Don’t expect them to work during time off or make them feel bad when they need to take time. Feeling supported and given ample time for life outside of work is a huge win for employees. And this can be a huge retention opportunity that doesn’t cost as much as raises. 

Conclusion: Raises aren’t the only option

With a tight budget, retaining employees may seem daunting, but there are practical strategies that can effectively tackle turnover. By enhancing benefits, even with low-cost options like flexible time-off or monthly perks, businesses can demonstrate their commitment to their employees’ well-being.

Promoting from within solidifies loyalty, offering career growth opportunities that reduce recruitment costs and foster long-term commitment. Strengthening company culture, ensuring employees feel connected to the organization’s mission, and cultivating engagement all contribute to a positive work environment where employees feel valued and part of a community. Focusing on work-life balance can significantly reduce burnout and turnover. Offering flexibility in scheduling and supporting employees’ personal needs can lead to increased job satisfaction without financial strain. 

Ultimately, addressing turnover doesn’t always require more money – it requires a thoughtful approach that prioritizes employee development, engagement, and well-being, creating a workplace where people want to stay and grow.

Grow your team with CareerPlug

“Prior to using Careerplug, my turnover rate was very high, around 75%. Trying to find the right people was a real challenge. My business suffered greatly without having great people on my team. I was desperate. Now that I am using Careerplug, my turnover rate hasn’t exceeded 20%. I have found top talent that has pushed my company to new levels we have never seen before. My company has doubled in income while using Careerplug for my hiring purposes.” – April Williams, The Grounds Guys of Cedar Creek Lake 

Want to learn more about how CareerPlug can help you hire and retain your team? Click the button below to sign up for a free demo of our software.