Expert Insights on Employee Retention in 2025

In 2025, as competition for top-tier talent intensifies, employers must prioritize employee retention as much as recruitment. As Tonya Schulte of The Profit Constructors explains, “Retention often solves hiring challenges because employees who feel supported will not only stay, but also act as ambassadors for your company and bring in high-quality referrals.”

We asked Tonya and other industry leaders for their single most important piece of employee retention advice in 2025. Here’s what they had to say about shaping the employee experience in the year ahead.

Building a People-First Culture

Creating a workplace where employees feel valued and supported is critical. According to John Kenney, CEO of Cotney Consulting, “Hiring and employee retention will hinge on creating an environment where workers feel supported, heard, and empowered to thrive.” This starts with a commitment to work-life balance, continuous learning opportunities, and transparent compensation practices.

Robin Mefford, Senior Manager of Product Marketing at Aspire Software, emphasizes that the day-to-day employee experience is just as important as big-picture strategies. If employees face frustrations due to manual tasks or poorly defined workflows, their engagement and satisfaction will suffer. Implementing streamlined processes and leveraging technology (like Aspire and Team Engine) can empower employees and lead to greater job satisfaction—a win-win for both employees and employers.

Katie Magoon, President of People Solutions Center, highlights the role of leadership in building a great culture. “Invest in training for your leaders so they can be great coaches and lay the foundation for the culture you want for your company,” she advises. Strong leadership establishes the foundation for a positive workplace and paves the way for employees to thrive over the long term.

Finally, Kathey Palmer, Chief Growth Officer at Inova Payroll, advises companies to revisit their mission, vision, and values to ensure they align with modern workplace expectations. “If these guiding principles are more than five years old, it’s time for a refresh,” she says. “Modern candidates seek more than a job—they want to join a team where they can grow, contribute, and feel valued.”

Career Development and Advancement Opportunities

When employees can see a clear path for growth, they’re more likely to stay with a company long-term. Levi Jett, owner of Jett Facility Consultants LLC, underscores the importance of showing candidates and new hires a potential career path within the organization. “Paint a picture for new hires that illustrates a potential career path. Show them year one, year two, year five,” he says. This kind of forward-thinking approach can transform a job into a long-term career.

Ed Laflamme, Head Harvester at The Harvest Group, echoes this sentiment by encouraging companies to create a “Learning Organization” that offers training, certifications, and clear advancement opportunities. Employees who see progress in their careers tend to be more engaged and are also more likely to stay and contribute at a higher level.

Communication and Feedback as Employee Retention Tools

Effective communication is foundational to any successful organization. Carla Policastro, CEO of Cycle CPA, recommends regular meetings with employees to understand their individual goals and what success looks like for them. These conversations build trust while also aligning personal aspirations with organizational objectives.

Stephanie Leveling, Brand Ambassador at BOSS by Integra, stresses the importance of giving employees consistent feedback throughout the year. “Don’t wait until the end of the year to tell them all the things they should have done,” she advises. Instead, act as a coach, helping employees play to their strengths and grow in their roles. 

“It's extremely important to recognize people for their work and thank them for their contributions, too,” added Ed Laflamme.

Driving Motivation Through Clear Goals and Incentives

Clear goals and transparent incentives can energize teams and align their efforts with organizational objectives. The Harvest Group’s Alison Hoffman suggests setting measurable goals, such as revenue targets or satisfaction scores, and tying incentives directly to these outcomes. “I’ve seen companies achieve amazing results following these guidelines,” she says. Employees are more likely to engage with their work when they understand how their efforts contribute to the company’s success.

Alison adds that transparency in rewards and recognition is also key and suggests creating incentive programs tied to measurable outcomes rather than subjective criteria. “No more subjective popularity contests for year-end bonuses,” she says. Aligning incentives with clear goals can drive motivation and create a culture of accountability.

As we look toward 2025, it’s clear that companies committed to putting people first will be the ones to succeed in retaining top talent. Meaningful engagement, clear career development paths, and a culture of appreciation will not only help businesses retain employees but will also turn them into loyal ambassadors who bring in the next generation of high-quality talent. 

As Mike Voories, Founder & CEO of BR1, put it simply, “If you want to recruit and retain the best people...be their best option.”