How to keep your best employees: Developing an effective retention policy

TLDR

Employee retention is a high‑stakes challenge, with executives investing significant resources, yet departures often stem from unrelated shocks, attachments, and fit rather than mere dissatisfaction. The article presents new research on turnover drivers and offers recommendations for integrating these insights into a comprehensive retention strategy. The findings contest the belief that dissatisfaction drives exits and that monetary incentives alone retain staff.

Abstract

Executive Overview The competition to retain key employees is intense. Top-level executives and HR departments spend large amounts of time, effort, and money trying to figure out how to keep their people from leaving. This article describes some new research and its implications for managing turnover and retention. These ideas challenge the conventional wisdom that dissatisfied people leave and money makes them stay. People often leave for reasons unrelated to their jobs. In many cases, unexpected events or shocks are the cause. Employees also often stay because of attachments and their sense of fit, both on the job and in their community. We discuss these ideas and make recommendations for integrating them into a comprehensive retention plan.