How to Retain Employees and Attract the Best Talent for Your Small Business

If you want to have a successful business, you need to find and hire great employees and then keep them with you. Knowing how to attract and retain employees is essential to a vital business. It improves culture and morale; helps you grow your institutional knowledge and creates a healthy team atmosphere. And employees like to stick around, too: a 2025 McKinsey study found that 39% of employees stay in their jobs for security, the primary driver in job retention. No wonder good bosses are always looking for strategies to retain employees!

So, when you have brought in great talent and are working with a talented employee, you want to keep them around. Of course, a competitive salary and benefits go a long way, but there are creative ways to retain employees that go above and beyond just money. If you’re thinking about how to retain employees, here are some ideas to consider. And to make sure your business is covered in case of the unexpected, reach out to Farm Bureau.

Strategy #1: Invest in Your Employees

The same 2025 McKinsey study found that 28% of employees stay in their jobs because they value their salary and benefits. And of course, the point of a job is to earn money, so it’s a big factor in most people’s decision making. You can’t attract and retain high quality employees without offering competitive pay and a generous benefit package. 

Workers often aren’t afraid to move companies to find a place that compensates them for their talents. This includes a reasonable salary, as well as other benefits like retirement savings, paid time off and parental leave. You might also want to explore non-standard benefit options, like gym access or employee rewards programs. All of these can help improve employee retention.

Strategy #2: Provide Training

Starting a new job is difficult, especially for people who are driven by results. It takes a long time for even the most adaptable employee to learn the ropes, get settled into a new workplace culture and become acclimated to their job responsibilities. Help new employees succeed by having a formal onboarding and training program. Not only will this get them up to speed faster, but it will also make them feel good about their decision to join your team.

Make sure they’re introduced to employees across your business, not just those in their department, so they can understand how all of the pieces fit together.

Strategy #3: Encourage Learning and Innovation

Employees who are passionate about their jobs and committed to working hard are often people who enjoy learning. Consider offering them opportunities to grow their skills and knowledge. That might include paying for education or professional development courses, providing time for them to attend industry gatherings and conferences and subscribing to resources from which your employees can learn. You can also provide real-time learning opportunities by giving employees the chance to take on new responsibilities or address a weakness.

Giving employees an opportunity to think creatively and implement innovative practices is also a way for them to stretch their thinking and learn new skills. Plus, when they make an impact on their workplace, they will be more engaged, which leads to greater productivity.

Strategy #4: Offer Opportunities for Growth

A 2024 study found that 23% of American workers are not satisfied with their opportunities to advance in their current job.  Clearly, career advancement is an important factor in employee retention, especially if you’ve hired ambitious, driven employees.

Your best employees want to be recognized and see movement in their career journey. Ensure that you have growth and advancement opportunities — and that those are clearly communicated — so that your employees know that they can continue to move forward in their career without moving away from your business. Give them opportunities to talk with senior leaders in your business and clearly defined career paths so that they understand how they might grow in their careers, rather than the impression that they will hit a glass ceiling. 

Strategy #5: Be Intentional About DEAI Initiatives

DEAI (diversity, equity, accessibility and inclusion) initiatives have the power to attract and retain talented employees, and when they’re lacking, they can drive away talented employees, too. When you make pay equality, accessibility and diverse hiring practices a priority, you send a message that you value your employees and their varied experiences and skill sets.

Additionally, if you offer options like flexible working situations (such as work from home or non-traditional hours), you also broaden your candidate pool. For example, someone with a chronic illness may have to work different hours to accommodate a treatment regime. That doesn’t mean that they don’t work as hard or contribute as much as someone who is at their desk 40 hours per week. Without offering that option, you may miss out on a stellar candidate. 

Giving a working parent the flexibility to pick up their child from school and finish working from home might mean you hire an experienced, creative candidate who would otherwise be shut out from your workplace. And hiring people with non-traditional educational backgrounds or from backgrounds who aren’t normally in your field means that you’ll benefit from their innovative perspective, putting you ahead of the competition and opening up new fields you might not otherwise have captured.

When you surround yourself with people from different backgrounds and experiences, you gain the benefit of a variety of voices helping you build your business.

Strategy #6: Build Connections

Having good relationships with your coworkers is an important part of job satisfaction. Taking referrals when looking for new employees and encouraging friendships to grow can help you recruit and retain top talent while also fostering an open and team-oriented workplace. Give your employees the opportunity to socialize and form bonds through initiatives such as affinity resource groups or other activities.

Additionally, connecting to your community through donations and volunteer service shows employees that they are part of something larger. It helps them feel like what they do is worth something beyond their paycheck. For many people, that’s a great way to connect with one another and with their neighbors. 

Keep Your Business Protected

If you have key people in leadership positions, consider key employee insurance. You can also reach out to Farm Bureau to discuss ensuring that your business is protected.