The best employee retention programs for 2025 (and how to implement them)

Retaining top talent has become one of the most significant challenges for organizations in the current job market. High turnover not only disrupts productivity but also leads to increased recruitment and training costs. 

To combat this, companies are investing in employee retention programs - strategic initiatives designed to keep employees engaged, satisfied, and loyal. These programs go beyond table stakes benefits, focusing on what employees truly value, from career development opportunities to personalized wellness support. 

In this article, we’ll discuss four standout examples of employee retention programs and highlight the key benefits they bring to both employees and organizations.

Key takeaways

• Employee retention programs reduce turnover by focusing on engagement and satisfaction, fostering loyalty and productivity.
• Flexible benefits like Lifestyle Spending Accounts and wellness stipends allow customization, addressing diverse employee needs and life stages.
• Health and wellness programs demonstrate a commitment to holistic well-being, improving morale, trust, and productivity.
• Streamlined and inclusive benefits simplify administration, ensure accessibility, and resonate with global workforces, helping to boost retention.
• Effective employee retention strategies reduce recruitment costs, boost morale, and enhance employer reputation, all of which help to attract and retain top talent.
• Forma simplifies employee retention programs with intuitive tools, flexible solutions, and analytics, helping companies like Microsoft and lululemon thrive. 

What are employee retention programs?

Employee retention programs involve strategies and initiatives that are designed to reduce employee turnover and keep top talent engaged and committed to the organization. These programs aim to create a positive work environment, provide competitive compensation and benefits, and offer opportunities for growth and development.

When you invest in employee retention, you demonstrate that you value your employees and are committed to their long-term success. This, in turn, boosts morale, job satisfaction, and overall productivity.

3 examples of effective employee retention programs

Some examples of employee retention programs include:

1. Flexible benefits programs

Flexible benefits programs are designed to empower employees by allowing them to customize their benefits package based on their individual needs, circumstances, and preferences. This approach recognizes that offering multiple point solutions does not work for a modern, diverse workforce. By offering a range of options under a flexible benefits program — such as spending accounts for wellness, lifestyle, and healthcare —  you can enhance employee satisfaction and engagement. 

Flexible benefits programs also provide a sense of ownership and value among employees, which fosters loyalty and long-term retention. Flexible benefits adapt to changing life circumstances, ensuring employees feel supported at every stage during their career.

Examples: Lifestyle Spending Accounts allow employees to spend funds on activities, products, or services that matter to them, such as gym memberships, wellness programs, or personal development courses. Additionally, Pre-tax accounts like Flexible Spending Accounts and Health Savings Accounts can provide financial advantages for managing healthcare expenses.

Tools like the Forma Visa Card and Forma Store simplify the process of utilizing flexible benefits, ensuring employees can easily access what they need.

2. Health and wellness programs

Health and wellness programs are essential for maintaining an engaged, healthy, and productive workforce. These programs go beyond standard health insurance to include valuable resources and support for physical, mental, and financial well-being. 

When employers address these areas, they create a workplace environment that values the holistic health of their employees. Investing in wellness programs not only improves employee morale but can also reduce absenteeism and healthcare costs, making it a win-win for both employers and employees.

Examples: Forma’s Health Reimbursement Arrangement offering enables employers to provide employees with the flexibility to cover medical expenses that are not included in traditional insurance plans. Wellness-focused accounts give employees the freedom to choose activities that support their health, such as fitness classes, therapy sessions, or nutritional counseling.

These resources show employees that their employer is committed to their overall well-being, fostering trust and loyalty.

3. Equitable and inclusive benefits programs

Equitable and inclusive benefits programs ensure that all employees feel valued and supported, regardless of their role, location, or personal circumstances. These programs address the unique needs of an increasingly diverse workforce, including differences in age, culture, and geographic location. 

By providing equitable access to meaningful benefits, employers can create a culture of inclusion that resonates with employees and encourages them to stay.

Examples: Forma’s global benefits customization capabilities allow employers to design programs that align with the specific cultural and regional needs of their employees. For example, benefits can be tailored to accommodate healthcare systems, lifestyle preferences, or legal requirements in different countries.

This approach ensures that employees, whether working in headquarters or remotely, feel equally valued and supported, contributing to stronger retention rates.

Benefits of implementing employee retention programs

Investing in employee retention programs offers numerous advantages for your organization. These initiatives help you save money, boost employee morale, and enhance your reputation as an employer.

Reduced turnover costs

High employee turnover can be expensive, as it involves costs associated with recruiting, onboarding, and training new hires. When you implement effective retention strategies, you can significantly reduce these expenses.

By keeping your best employees on board, you maintain productivity levels and preserve valuable institutional knowledge within your organization.

Improved employee morale and engagement

When you prioritize employee retention, you demonstrate that you value your workforce and are committed to their long-term success. This, in turn, leads to higher job satisfaction and increased employee engagement. Happy, motivated employees are more likely to perform at their best and contribute to a positive work environment.

Enhanced employer brand and reputation

Organizations known for their strong employee retention programs often have a competitive edge in attracting top talent.

Job seekers are drawn to companies that prioritize employee well-being and offer opportunities for growth and development.

As your current employees share their positive experiences, they become brand ambassadors, helping you build a strong employer brand and attract high-quality candidates through referrals and word-of-mouth.

Streamlined benefits administration

With the right approach to your employee retention program, you can streamline benefits administration, simplifying the process of managing and delivering benefits and making it easier for both HR teams and employees to navigate.

With the right platforms and partners supporting employee retention programs, you can reduce the time and effort required to administer benefits, ensuring that resources are allocated efficiently and without unnecessary complexity.

By automating key processes and providing user-friendly tools, employers can enhance the employee experience and reduce administrative headaches.

How to implement an employee retention program

Implementing an effective employee retention program requires a strategic approach that addresses your organization's specific challenges and goals. 

1. Assess current retention challenges

To create a successful retention program, you must first understand the factors contributing to employee turnover within your organization. Analyze your turnover rates and patterns, looking for trends across departments, roles, and/or demographic groups. This data can help you pinpoint specific areas or populations that may require more focused attention.

Conducting employee engagement surveys and exit interviews can provide valuable insights into the reasons behind employee departures. Ask questions about job satisfaction, management effectiveness, career development opportunities, and work-life balance to identify potential retention pain points. Use this feedback to inform your retention strategy and prioritize initiatives that address the most pressing concerns.

2. Develop a retention strategy

Armed with data and insights from your assessment, develop a comprehensive retention strategy that targets the key drivers of employee turnover. Identify specific goals, such as reducing overall turnover by a certain percentage or increasing employee engagement scores, to guide your program design and measure success.

Design targeted programs and initiatives that address the identified retention challenges and align with your company's values and culture. This may include implementing flexible work arrangements, enhancing professional development opportunities, or improving communication and feedback channels. Prioritize initiatives that are most likely to have a significant impact on retention and employee satisfaction.

Make sure you allocate sufficient budget and resources to support the implementation and ongoing management of your retention program. This may involve investing in technology solutions, such as employee engagement platforms or learning management systems, or allocating funds for employee recognition and rewards. Ensure that your retention initiatives are sustainable and can be integrated into your organization's long-term strategy.

3. Communicate and launch your program

Effective communication is key to the success of your employee retention program. Educate managers and employees on the purpose, benefits, and components of the program, emphasizing how it aligns with your company's values and goals. Provide training and resources to help managers understand their role in supporting retention efforts and fostering a positive work environment.

If communication feels like too much of a challenge, this is something that a third-party administrator can help with. With comprehensive training programs and ongoing support, TPAs and flexible benefit platforms can help mitigate any communication issues and ensure your employees are up-to-date on the benefits provided by the employer’s retention program.

4. Continuously evaluate and improve

Launching an employee retention program is not a one-time event but an ongoing process that requires continuous evaluation and refinement. Regularly assess the impact of your initiatives on key retention metrics, such as turnover rates, time to fill open positions, and employee satisfaction scores. Look for trends and patterns that may indicate the need for program adjustments or additional support.

Gather employee feedback and suggestions through surveys, focus groups, and one-on-one conversations. Encourage open and honest communication about the effectiveness of your retention efforts and areas for improvement. Use this feedback to inform program updates and ensure that your initiatives remain relevant and valuable to your workforce.

Partner with Forma for your employee retention program

An effective employee retention program is critical for fostering a loyal, engaged workforce and driving long-term organizational success. To create impactful programs that truly resonate with employees, you need tools that are flexible, efficient, and tailored to meet diverse needs. That’s where Forma comes in.

Forma, a category-leading flexible benefits platform, simplifies the creation and management of employee retention initiatives. Whether you’re offering all-inclusive Lifestyle Spending Accounts (LSAs), wellness stipends, or professional development funds, Forma can help you deliver benefits that show your commitment to your employees' well-being and growth. With intuitive tools, seamless administration, and insightful analytics, Forma empowers you to craft programs that enhance satisfaction, reduce turnover, and support your organizational goals.

Join forward-thinking companies like Microsoft, lululemon, and TripAdvisor, who trust Forma to elevate their employee benefits strategy. With Forma, you can transform your employee retention efforts into a streamlined, engaging experience for both employees and HR teams.

Ready to boost employee satisfaction and retention? Schedule a demo with Forma today and discover how our innovative solutions can help you build a thriving, committed workforce.

*This document is for informational purposes. Forma is not engaged in the practice of law. Nothing contained herein is intended as tax or legal advice nor to replace tax or legal advice from counsel. If you need tax or legal advice, please consult with counsel or a certified tax professional.

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