12 Factors That Impact Employee Retention and Morale

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Lauren Groff
July 20, 2021

Every HR manager knows that employee retention and morale is a key factor in building a world class team. They are also aware that investing in human capital isn't' something to be taken lightly, as employees should be viewed as valuable assets that a company should nurture and appreciate deeply.

Employee retention and morale also play key roles in boosting company profits.  And a positive and productive workplace is an important component of any business establishment.

Arguably the biggest factor in maintaining a team’s high spirits is understanding the needs and motivations of staff. Especially in larger businesses with hundreds of staff spread across multiple sites. 

So how can we measure employee satisfaction, engagement and morale; with the ultimate goal of increasing employee retention?  Read on to hear our top 15 factors that impact employee retention and morale the most.

1 - What gets measured.

Where there’s data, there’s a way: One of the most effective ways to gather employee engagement data is an online survey or satisfaction review. This can usually be done from any device, anywhere and at any time, and can provide individualized satisfaction rates or company-wide engagement scores. 

2 - Single them out, in a good way.

Taking note of individuals and their input into the company is a surefire way to increase worker engagement. Take note of exceptional individuals, especially those to dedicate more time and manpower than expected to a project, and express your gratitude for their dedication. Feeling acknowledged and appreciated will become more enthused with their work.

3 - Encouraging a work-life balance.

No employee can live and breathe work. Encourage employees to entirely clock off from work come home-time, muting work notifications where possible and not continuing work at home, to effectively refresh their mood. This will allow them to recharge, and return tomorrow with a renewed drive and passion for success in their work. 

"Make sure staff time time out of their day  to recharge their energy, whether that’s a half-hour break and regular tea breaks or an hour to eat and relax, as well as clocking off entirely at the end of the day, keeps your staff fresh and engaged."
- Hannah Graves, psychologist at
Lia Help 

employee retention

4 - Pay fair benefits and wages.

Perks of the job always encourage higher levels of engagement and loyalty. Keep long-lasting staff engaged and content with wage raises, increasing paid holiday allotments and where applicable, offer discounts that rise with each year employed.

5 - Focus on effective leadership.

May it be poorly utilized funds or unsatisfactory assignments, having a weak management can lower employee engagement and increase the risk of employee turnover. Make sure managers attend applicable courses regularly, and keep tabs on employee feedback on their ability. 

6 - Have faith in their abilities.

When you hired your staff, you showed them faith in their ability to complete the work they’ll be assigned. Make sure not to undermine this in practice; trust each member to complete their work without being bothered regularly, and they’ll flourish in the company.

employee retention

7 - Provide career opportunities.

Dead end jobs suck the life out of employees. Wherever possible, enable access to management training and niche projects, promote from within rather than outsource and be as honest about prospects as possible. Employees who know their prospects will actively engage more at work.

8 - Encourage employee feedback.

Employees want to be heard when they’re unhappy, but the prospect of persecution can put your staff off raising their voice. Encourage your staff to talk with you if they’re unsatisfied with their position or other aspects of the job, and keep the forum open and friendly.

9 - Cultivate great culture.

Company culture is an important focus when it comes to your employees overall happiness.  It refers to the values, characteristics, attributes, and attitudes upheld by an organization. From the external, it is seen from the company's vision and mission statements, branding, operations, and standards - such as their recruitment requirements. In the internal, it is vivid in the company decisions, policies, and regulations, employer/employee interactions, etc.

A good company culture is not just centered on the gains of the company, but encourages everyone to feel like they are part of an aligned team that shares the same values.

10 - Opt for autonomy.

No-one likes to be micromanaged, especially if the methods offered do not suit their individual style. Rather than focusing on the journey to success, focus on outcomes, for if everyone can complete their tasks on time and to company protocols, their methodology isn’t important.

11 - Help them align with their interests.

Related to employing the right people for the job, make sure an employee has work that interests them. People and their interests, as well as their strengths, are diverse. It can both boost your company’s earnings and employee engagement to assign jobs to individuals most likely to enjoy and excel in that task.

12 - Use tools that support employee morale initiatives.

Human resource management software solutions are becoming more instrumental in achieving people management goals. With these tools it is easier to implement and automate your people management strategies.

Using software that helps you take care of your people at every stage helps improve employee morale. From helping employees with KPI’s to smooth applicant tracking or easy self-onboarding. The goal is to give your employees a stress -free experience.



Employee retention and morale are very important to your business, because employees help make the company thrive in its mission to serve customers. When your employees are happy, so are you. When your employees are at their strongest physically and mentally, so is your business. So, when thinking about how you can improve your employee retention and morale, look to these 12 factors.

We hope these tips will help you understand how you can manage and retain great employees in your business!  
Want more insights into hiring and onboarding? Download our handy guide below!

Employee retention

Article by: Lauren Groff
Lauren is a blogger at
Academized and writer for UK Writings who enjoys identifying and finding solutions for problems to improve effectiveness of communication. She has been involved in a number of projects across the country, and writes for Order Essay.

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