Right here’s what correlates with greater intent to remain for workers, per greater than 1.3 million worker surveys.
What drives staff to stick with an organization?
Pay and advantages aren’t the largest motivators. They matter, however they don’t actually differentiate the very best workplaces from one another.
At Nice Place To Work® Licensed™ corporations — the place organizations meet a minimal threshold of constant experiences for his or her staff — the largest driver of retention is significant work.
When staff report that their job has “particular which means,” they’re almost 4 instances extra more likely to need to stick with their firm. That’s greater than twice as robust a relationship because the correlation between truthful pay and intent to remain, or particular and distinctive advantages.
The highest three drivers of retention
Honest pay or distinctive advantages don’t crack the highest three drivers of retention for nice workplaces. When staff say they’re paid pretty, they’re 54% extra more likely to need to keep. After they report particular advantages? Simply 74% extra probably.
The largest retention elements are function, psychological and emotional well-being, and a way of truthful therapy, no matter function. Right here’s what the info says:
- Workers who really feel their work is significant are 294% extra more likely to need to keep
- Individuals who really feel their office is psychologically and emotionally wholesome are 103% extra more likely to keep
- If somebody seems like a full and revered member of the workforce, no matter function, they’re 104% extra more likely to keep
Gender variations
Nice Place To Work analyzed greater than 1.3 million surveys taken in 2024 and 2025 and noticed some attention-grabbing variations between women and men.
Significant work is the highest retention driver for each women and men, however psychological and emotionally wholesome work environments are a stronger driver for girls (123% extra probably) than for males (87% extra probably).
Nonetheless, the drivers had a major correlation for each genders, suggesting that any efforts to enhance retention for one group would probably enhance retention for all staff.
Making the enterprise case for retention
What are the potential financial savings from holding onto extra of your most gifted staff?
Changing an worker can value between 50% to 200% of their wage, in accordance with the Society of Human Sources Managers. This consists of the price of recruiting to interchange them, in addition to intangible prices like misplaced productiveness, institutional information, and extra. On common, it takes new staff as much as 12 months to succeed in the identical stage of productiveness as departing staff, in accordance with Gallup.
Employee attrition and disengagement value median S&P 500 corporations about $282 million yearly, per McKinsey. Firms that prioritize worker engagement may seize $90 million in worth.
Utilizing a conservative determine of fifty% of the annual wage to interchange an worker and utilizing the 2024 common turnover price from the Bureau of Labor Statistics of 23%, any enterprise can shortly ballpark its potential turnover value.
For a typical firm with 1,000 staff and salaries round $80,000 per worker, the back-of-the-napkin math suggests a typical retention price may cost as a lot as $9.2 million.
The price of retention can add as much as way more than the onerous numbers. Mosaic Consulting Group calculated the precise value of turnover, together with “onerous” prices like paying for background checks, job itemizing companies, and worker coaching, in addition to “gentle” prices like supervisor coaching time or time spent interviewing candidates. Added collectively, Mosaic discovered that decreasing turnover allowed it to avoid wasting $8 million over 4 years.
With Nice Place To Work information, Mosaic’s HR leaders have gotten buy-in for tradition initiatives.
“By speaking about it from the enterprise perspective and never from what individuals see as fluffy engagement information, I’ve been capable of convert skeptics to believers,” shared Jessica Fuller, vp of individuals and tradition consulting at Mosaic.
When you’ve got individuals information, you may inform a narrative about monetary efficiency. The higher your story, the extra affect you’ll have to accomplish your subsequent aim.
Uncover the Nice Place To Work Impact
Focused on studying extra about how your organization tradition drives enterprise efficiency? Obtain our report “The Nice Place To Work Impact Playbook.”
