Retention is the deliberate practice of keeping valued employees with the organisation - through reward, development, management quality and culture - so they choose to stay rather than leave for another opportunity. It is the inverse concern to staff turnover.
What it means
Retention strategies span far beyond pay - career pathing, recognition, manager quality and flexibility all factor in - but compensation remains one of the most direct levers, since pay falling behind market is a common, identifiable driver of voluntary turnover.
Where it fits in
Salary benchmarking and merit increases are two of the payroll-adjacent tools used specifically for retention, correcting pay before it becomes the reason a valued employee leaves.
Key rules
- The practice of keeping valued employees from leaving.
- The inverse concern to staff turnover.
- Spans reward, development, management and culture, not pay alone.
- Salary benchmarking and merit increases are direct retention levers.
