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Employee Retention Strategies 2025: Aligning Benefits with What Employees Actually Value

Illustration of four people interacting with a large satisfaction meter that ranges from sad (red face) to neutral (blue face) to happy (yellow face). One person adjusts the arrow toward the happy face, while others hold laptops or work together, symbolizing employee engagement and retention.
Retention isn’t about perks, it’s about building a culture where employees feel valued, supported, and heard.

When I sit down with nonprofit leaders, small business owners, and government teams, one theme always rises to the top: retention. The question isn’t just how do we keep our people, but how do we align what we offer with what employees actually want?


Recent SHRM data makes it clear:

  • 88% of employers rate health care as very or extremely important.

  • 81% say the same for leave and retirement benefits.

  • 68% report employees still prioritize flexible work, even amid return-to-office pushes.


These numbers haven’t shifted much over the years. Why? Because they reflect non-negotiables, not trends. Health care, time off, financial security, and flexibility are the foundation of how employees experience work.



Why Retention Matters More in 2025

Replacing an employee can cost 1.5–2x their salary. For small organizations and nonprofits, those losses are amplified. Retention isn’t about “perks”, it’s about trust, loyalty, and culture.




Employee Retention Strategies 2025: What Employees Value Most


1. Health Care: Creative Solutions Beyond Insurance

If full coverage isn’t possible, explore:

  • HSAs or stipends to offset costs

  • Partnerships with local providers

  • Low-cost mental health benefits (counseling, wellness apps)


2. Leave: Flexibility Counts as Much as Time

Even when PTO is limited, leaders can:

  • Allow flexible schedules or hybrid days

  • Offer volunteer time off tied to mission

  • Provide restorative “renewal days”


Case in point: 

One nonprofit we worked with added 2 annual “renewal days” and saw a 120% increase in volunteer sign-ups.



3. Retirement: Small Steps Build Trust

  • Start with modest matching contributions

  • If a 401(k) isn’t feasible, offer IRA payroll deductions

  • Provide financial literacy sessions for staff



4. Flexibility: Still the No. 1 Retention Tool

Flexibility doesn’t always mean fully remote:

  • Flex start/end times

  • Compressed workweeks

  • Accountability for outcomes, not seat time



How to Align Benefits with Culture

Benefits don’t exist in isolation; they tell a story about your organization’s values. Are you signaling that you value well-being, growth, and balance, or just productivity at all costs?




Practical Next Steps for Leaders

  1. Survey your team

    • Use a simple tool like Google Forms or Typeform to ask employees directly which benefits matter most to them. Go beyond multiple choice and include open-ended questions to capture unexpected insights.


  1. Prioritize what you can control

    • Even if you can’t afford high-cost benefits right now, you can almost always adjust things like flexibility, recognition, or professional development. Focus on areas where small changes can create an outsized impact.


  1. Communicate the “why” behind your benefits

  • When rolling out new or adjusted benefits, explain how they connect to your organization’s mission and values. Employees want to know not just what they’re receiving, but also why leadership chose it and how it supports their well-being.

  1. Start small and measure impact

    • You don’t need to launch a full overhaul all at once. Begin with a pilot; whether that’s one new flexible work option, an added mental health benefit, or a financial literacy workshop. Track employee feedback and participation, then build from there with confidence.


  2. Revisit regularly

    • Retention strategies aren’t “set it and forget it.” Plan to check in annually, or even semi-annually, to ensure your benefits remain aligned with employee needs as your team and workplace evolve.


Final Thoughts

In 2025, the organizations that thrive will be those that listen and align. Retention isn’t about matching big corporate perks, it’s about being intentional, consistent, and people-centered.


Question for you: 

What’s one small change you’ve made that boosted retention in your organization? Drop it in the comments, I’d love to learn what’s working.


📩 Need help aligning benefits with culture and values? Let’s talk.

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