Competition for skilled talent has never been fiercer, and in industry, where innovation and specialist skills drive progress, the ability to attract and, above all, retain the best employees has become critical to survival.

Across industries, the urgency is palpable: a 2023 LinkedIn survey reveals that as many as 93% of companies consider retention a priority challenge. This concern is compounded by the fact that 75% of employers struggle to fill open roles, making turnover not only costly but strategically risky.

Retention is no longer an issue confined to the HR department; it is a shared leadership responsibility that requires a deep understanding of what motivates employees to stay.

What drives loyalty, over and above salary?

Why does an employee choose to stay long-term? The answer is never one-dimensional.

Herzberg's Two-Factor Theory provides us with a useful framework, distinguishing between what causes dissatisfaction and what creates motivation. While hygiene factors – pay, benefits and working conditions – are essential for avoiding dissatisfaction (82% of employees seek better pay, according to Korn Ferry 2023), it is motivational factors that create a real bond.

These include a sense of belonging, recognition and opportunities for growth. As highlighted by an academic analysis of retention strategies in industry (Lewis & Sequeira, 2017), workers are deeply motivated by feeling respected, supported and appreciated, values that often outweigh the appeal of monetary compensation alone.

Today, talented individuals are more loyal to their careers than to their companies. For this reason, factors such as lack of professional development, poor management and burnout are among the most common reasons for leaving a job. A company that does not invest in the growth of its employees is effectively pushing them towards the competition.

Building loyalty: the pillars of strategy

To transform retention from a simple problem into a real competitive advantage, it is necessary to take action on several levels simultaneously.

The academic study ‘Effectiveness of Employee Retention Strategies in Industry’ identifies five fundamental strategic pillars: compensation, environment, growth, relationships and support. These elements represent the key areas in which organisations must focus their investments to build lasting and meaningful relationships with their employees:

• Compensation is not limited to salary alone: it includes the entire remuneration package and must be not only attractive but also competitive, to prevent basic dissatisfaction and make employees feel adequately recognised for their contribution.
• Environment, on the other hand, concerns the quality of people management and organisational culture: creating a positive workplace where employees feel appreciated and recognised is essential for fostering a sense of belonging and motivation.
• The growth pillar is equally crucial: opportunities for professional development and continuous learning allow individual goals to be aligned with those of the company, maintaining high engagement and offering concrete career prospects.
• Relationships focus on the bond with managers and colleagues, bearing in mind that employees often leave companies, not bosses; a collaborative environment and solid relationships can make all the difference in the decision to stay.
• Finally, support refers to proactive leadership: it is not just about providing help with work difficulties, but also about supporting employees in personal challenges, reinforcing their perception of their own value within the organisation.

Detailed strategies for operational excellence

Employee retention begins well before their first day at the company. It is essential to ‘narrow the front door to close the back door’ - Richard P. Finnegan: carefully selecting who comes in means laying the foundations for lasting working relationships.

The recruitment process must be thorough and strategic, aiming not only to offer competitive remuneration packages, but also ones that are transparent and consistent with the principles of fairness and inclusion.

Onboarding, in turn, cannot be reduced to a set of administrative practices: it must facilitate the creation of authentic connections, understanding of the corporate culture and full integration of the new employee. The first ninety days are crucial for consolidating this initial bond, which is the foundation of long-term retention.

Investing in professional development and recognition is equally crucial. People tend to stay where they perceive real opportunities for growth. Considering that by 2027, six out of ten workers will need retraining to fill skill gaps (The Future of Jobs Report 2023, World Economic Forum), companies must offer clear development paths and personalised training programmes.

In this context, internal mobility plays a crucial role: when employees feel they need to change companies in order to progress - as 67% of workers say according to the Pew Research Centre (2023) - the organisation risks losing its most ambitious talent. At the same time, a consistent and coherent recognition system reinforces employees' sense of value and belonging on a daily basis.

The workplace must be a place where people want to stay and grow. To achieve this goal, it is essential to ensure the holistic well-being of employees, promote their autonomy and take the issue of burnout seriously.

Chronic unmanaged stress is recognised by the World Health Organisation as one of the main causes of burnout, a phenomenon strongly correlated with workers' propensity to leave a company. At the same time, offering trust, responsibility, and operational freedom reduces the frustration associated with micromanagement, considered one of the most obvious signs of a toxic work environment (Monster, 2023).

A strong corporate culture based on fairness, inclusion and transparency increases trust in leadership and creates a climate in which employees do not simply perform their roles, but feel they are an integral part of a shared project.

The unavoidable role of leadership and the need to evolve

Retention is not just a company policy, but a real managerial skill. A study by the Boston Consulting Group shows that relationships with managers can increase employee loyalty by up to 3.2 times and that the most effective managers act as mentors and coaches, guiding their teams with empathy, active listening and continuous feedback, building the personal trust that forms the basis of loyalty at work.

A study conducted on a petrochemical company, Petrochemical Company Limited (PCL), highlighted a crucial aspect: although initially 78% of employees considered HR policies to be valid, almost 70% requested a review because they were perceived as obsolete. This example highlights that retention is not a static goal, but a dynamic process.

Companies must constantly listen to managers and employees and update their strategies, integrating new solutions that respond to demographic changes, market developments and modern workers' expectations of professional life.

Structural benefits: an investment that pays off

Strong retention generates tangible benefits at all levels. For leadership, it provides strategic stability, nurtures corporate goodwill and, above all, avoids the cost of turnover, preserving valuable intellectual capital and operational continuity.

For managers, this allows them to focus on leading and developing their team rather than managing staffing emergencies, reducing disruptions and increasing productivity.

For human resources, time and budget are freed up from constant recruitment and can be redirected towards strategic initiatives and leadership development.

In conclusion, in the industry of the future, true leadership will lie in the ability to create an environment where employees feel valued and irreplaceable. Retention is an investment that pays off in terms of stability, knowledge and long-term success.