Emma wrote, “I quit because I felt invisible — not because of the workload,” on her manager’s desk on her last day of employment. Emma is not alone in her experience. Only 31% of American workers were engaged at work, according to a 2025 Gallup report, which was a 10-year low. A lot of people pointed to a lack of support and acknowledgment as the main causes of their discontent. As a result, more businesses are placing a higher priority on creating a people-first culture. But what does that actually entail, and does it actually enhance employee retention and well-being? Let’s examine the challenges of establishing an environment at work where employees feel appreciated, encouraged, and inspired to stick around.

Equip Managers to Be Compassionate Coaches

Our workplace culture is not defined by posters on a wall; it’s embodied by the people walking down the hall. However, there is tension in these hallways as leaders find themselves unprepared for the next generation of employees who bring their whole selves to work.

While previous generations were taught to leave their personal issues at the door, today’s new workforce brings unprecedented conversations to the workplace about personal and mental health challenges. This is the new reality at work, as disruptive to operations as it may feel. HR leaders need to equip managers to be compassionate coaches who listen, empathize, and provide appropriate flexibility while still holding teams accountable. Training is an excellent place to start.

We understand that leaders need employees who can get the job done and who stay to deliver results. However, it’s crucial to remember that our workforce has evolved. The cost of continually replacing younger employees far exceeds the investment required to engage and retain them effectively. Care about what your employees care about, and they will, in turn, care about what you care about.

Alayna Thomas, MS, PHR, Retention Strategist, Magnet Culture

Foster Psychological Safety Within Teams

In today’s competitive talent market, HR leaders must embed well-being into workplace culture to drive retention and performance. One proven strategy is fostering psychological safety within teams, ensuring employees feel safe to share ideas, voice concerns, and take risks without fear of retribution. Organizations that cultivate this environment see higher engagement, lower stress, and stronger long-term commitment from employees.

At a global tech firm, mid-management attrition was rising due to burnout and disengagement. By implementing leader-led open forums, peer coaching, and decision-making transparency, the company saw a 21% increase in employee satisfaction and a 30% drop in voluntary turnover, saving $5.2 million annually in rehiring costs. This approach not only reduced stress but also strengthened collaboration and innovation, demonstrating the direct link between psychological safety and business success.

A key factor in making this strategy effective is leadership. When managers model openness and actively encourage diverse perspectives, they create an environment where employees feel valued and supported. Structural flexibility also plays a role, as adaptable work arrangements and career development pathways help employees balance professional and personal commitments. Additionally, integrating well-being metrics into performance reviews shifts the focus from pure output to a more holistic evaluation of engagement and sustainability.

By embedding these practices, HR leaders create workplaces where employees thrive, leading to stronger retention, improved performance, and sustained organizational growth. A culture that prioritizes psychological safety is not just a benefit–it is a competitive advantage.

James Rose, Executive Leadership & Organizational Psychology Consultant, Cognitive Direction

Establish Management and Employee Committees

Creating a workplace culture that prioritizes employee well-being and retention requires more than just offering great benefits–it demands active involvement from both leadership and employees. One of the most effective strategies HR leaders can implement is establishing management and employee committees dedicated to shaping and improving workplace well-being initiatives.

Why Committees Work:

When leadership and employees collaborate, policies and programs become more relevant, effective, and embraced across the organization. Rather than HR making unilateral decisions about benefits, work-life balance, and engagement strategies, a well-structured committee creates a space for open dialogue, feedback, and innovation.

How to Structure a Well-Being & Retention Committee:

1. Gain Leadership Buy-In – Senior executives and department heads need to be involved to ensure initiatives align with business goals and have the necessary resources to succeed. Their support also signals that employee well-being is a business priority, not just an HR initiative.

2. Include a Diverse Employee Group – A mix of employees from different departments, levels, and demographics will ensure varied perspectives and help identify real workplace challenges. Employees who feel heard are more likely to engage with and champion new programs.

3. Meet Regularly with a Clear Agenda – Committees should meet monthly or quarterly to review benefits, assess engagement, and propose new initiatives. A structured agenda keeps meetings productive, and rotating responsibilities among members keeps participation active.

4. Use Employee Feedback to Drive Change – Surveys, focus groups, and informal conversations should guide committee discussions. Whether it’s adjusting health plan offerings, enhancing mental health support, or refining remote work policies, employee input should shape company decisions.

5. Take Action and Communicate Results – Employees need to see that their feedback leads to tangible improvements. Report back on changes implemented, measure their impact, and adjust as needed to maintain momentum.

The Bottom Line:

A management and employee well-being committee creates a collaborative culture where employees feel valued, leadership remains engaged, and retention improves naturally. By making well-being a shared responsibility, HR leaders can ensure that efforts are not only effective but also sustainable.

Louis Bernardi, Founder | “The Benefits Whisperer”, BritePath

Implement a Voice and Choice Approach

One proven strategy HR leaders can use to build a workplace culture that prioritizes employee well-being and retention is implementing a “Voice & Choice” approach–ensuring employees feel heard, valued, and have some autonomy in their work.

3 Tips for “Voice & Choice” to Work:

1. Provide regular two-way feedback. 

Move beyond annual engagement surveys. Implement frequent pulse checks, stay interviews, and open forums where employees can voice concerns and ideas. Most importantly–act on the feedback!

2. Provide flexible work and autonomy when you can. 

Employees who have some control over how, when, and/or where they work report higher well-being and engagement. Instead of micromanaging hours, offer flexible schedules, hybrid options, and outcome-based performance measures.

3. Ensure that managers are accountable and trained for employee well-being. 

Train leaders to recognize burnout and proactively support work-life balance. Managers who check in on workload, stress levels, and growth opportunities create a culture where employees feel supported, not overworked.

When employees feel heard and empowered, engagement and retention increase–because people want to stay where they feel respected, trusted, and valued! 

Please let me know if I can expand or provide additional information. Thanks,

Etty Burk

Etty Burk, Ph.D., President and Founder, Leading With Difference

Practice Honesty and Transparency

I hesitate to label this a “strategy,” but being honest with people is crucial. Human Resources is often not perceived as an ally by the average employee in an organization. Perhaps through no fault of their own, most people can cite at least one significant challenge they’ve had with HR.

People are perceptive; they recognize when they’re being excluded, gaslighted, ignored, or deceived. HR leaders who operate with good intentions and honesty can help employees navigate everyday work challenges. When individuals feel they are being treated as adults, trusted, heard, seen, and valued as individuals, they can work through typical challenges and persevere (even during difficult times).

People also understand that HR leaders sometimes need to maintain confidentiality. Therefore, when HR states they cannot share information or need time before disclosing details, assuring they will follow up (and then actually doing so), it is understood and much easier to accept than being avoided or outright lied to.

Regardless of generational differences, people desire someone who is honest and candid with them in a respectful and mature manner. HR leaders who practice this approach can significantly help employees navigate work challenges with peace of mind and motivation to continue delivering strong results for their colleagues, team, and company.

Elizabeth Boyd, Director of Learning, Leadership Development, & Onboarding, TalentLab.Live

Embed Purposeful Connection into Company Rhythm

One strategy that genuinely moves the needle? Embed purposeful connection into your company rhythm–not just once a year, but continuously.

At Zing Events, we work with organizations who think beyond ping-pong tables and pizza Fridays. They schedule regular team-building experiences with clear intent: to boost trust, not just team selfies. One of our clients runs “Escape the Box” quarterly–not for a jolly, but to actively strengthen problem-solving, resilience, and communication.

It’s had real results. Their engagement scores jumped 18%, and voluntary turnover dropped by a third. When people feel connected, they stay. When they collaborate with meaning, they thrive.

HR leaders often think well-being lives in HR policies. But it also lives in culture–and culture is built through shared experiences. Create opportunities for people to feel seen, supported, and part of something bigger. That’s not fluff–it’s strategy.

Charles Berry, Co Founder, Zing Events

Implement a Feedback and Recognition Program

One effective method HR leaders can employ to create a workplace culture that values employee well-being and retention is by implementing a robust employee feedback and recognition program.

Fostering open communication through regular check-ins, pulse surveys, and anonymous feedback mechanisms makes employees feel heard and valued. Acknowledging their contributions through peer-to-peer recognition, rewards, or career development opportunities creates a sense of belonging and motivation.

When workers realize that their contributions make a difference—whether in policies at work, benefits, or in the team itself—they are more likely to remain committed and motivated to the company. Not only does this improve retention, but it also builds a healthier, more positive workplace.

Brayn Wills, HR Manager, ProProfs Training Maker

Create a Strong Incentive Plan

HR leaders who wish to retain star performers must do more than offer minimal benefits and focus on true appreciation. A strong incentive plan gets workers fired up, deepens their dedication, and boosts engagement. When workers feel appreciated, they stay longer and work at a higher level.

The greatest incentives are more than just cash. Customized rewards–like additional paid time off, unique experiences, or professional growth opportunities–leave lasting impressions. Some companies offer paid sabbaticals following milestone anniversaries, while others give rewards based on experiences such as travel or skill acquisition programs. Google gives employees time to work on individual projects, allowing for creativity and job satisfaction. HubSpot provides a four-week paid sabbatical after five years, promoting long-term loyalty.

Intermittent recognition fails. Incentives need to be structured, consistent, and associated with transparent success criteria. Employees who receive regular, significant recognition are significantly more likely to remain and be committed. The appropriate program doesn’t only enhance retention–it reshapes workplace culture. If your incentives aren’t driving impact, rethink how you’re recognizing performance.

Ben Wieder, CEO, Level 6 Incentives

Maintain Personal and Consistent Communication

One thing that has worked well for us is keeping communication personal and consistent. We don’t rely on formal HR surveys; instead, we have real conversations regularly. I make it a point to check in with team leads and individual team members, not just when something goes wrong, but also when things are running smoothly. Over the years, I’ve seen how small issues—such as unclear expectations or lack of recognition—can quietly build up if no one asks. These one-on-one check-ins help us stay ahead of that. It’s not about ticking a box; it’s about creating a space where people actually feel safe speaking up.

We also don’t throw around the word “flexibility” unless we mean it. If someone needs to shift their hours or take time off mid-week, we make it work. That kind of practical, day-to-day flexibility matters more than offering some generic wellness benefit no one uses. When you’re a smaller team, you don’t need grand programs—you just need to pay attention and be human. That’s what keeps people engaged.

Ann Kuss, CEO, Outstaff Your Team

Make Well-Being a Shared Responsibility

One strategy that has worked well for us is making well-being a shared responsibility, not just something HR drives, but something our managers actively own. We train team leaders to check in during one-on-one meetings with more intention. Instead of only asking about deliverables, they’ll ask questions like, “What’s been draining you lately?” or “What’s one thing that would make next week easier?”

At first, it felt unfamiliar to some managers. But once we made it part of their actual role—not a bonus or soft skill—it started to shift the culture. People felt more seen, and when someone’s close to burnout, we usually catch it early.

It’s not a flashy strategy. But it’s consistent, and it works. And it’s helped us keep people engaged, supported, and more likely to stay long-term.

Vikrant Bhalodia, Head of Marketing & People Ops, WeblineIndia

Create a Culture of Open Feedback

One proven strategy that has consistently shown success is creating a culture of open feedback and recognition. At Nerdigital.com, we recognized early on that employees desire more than just a paycheck—they want to feel heard, valued, and supported in their growth.

One way we implement this is by conducting structured but informal check-ins, rather than relying solely on annual performance reviews. Every month, managers have one-on-one meetings with their team members to discuss more than just work progress—they talk about personal goals, roadblocks, and well-being. When employees feel comfortable discussing challenges before they escalate, retention naturally improves.

We also prioritize real-time recognition. Instead of waiting for formal award programs, we use simple tools like a dedicated Slack channel where team members can give each other shoutouts for great work. A little public appreciation goes a long way in making people feel that their contributions matter.

The key lesson? Employee well-being isn’t just about perks or benefits—it’s about fostering an environment where people feel psychologically safe, supported, and valued. When you create a culture where feedback flows both ways and employees know their efforts are recognized, retention becomes a natural byproduct.

Max Shak, Founder/CEO, nerDigital

Develop Personalized Career Development Plans

I strongly believe that personalized career development plans are one of the most effective strategies HR leaders can use to build a workplace culture that prioritizes employee well-being and retention. Employees who see a clear growth path within a company feel more valued, engaged, and less likely to leave.

One way to implement this is by conducting quarterly career check-ins rather than limiting growth discussions to annual performance reviews. For example, a company I worked with introduced tailored learning paths based on employee strengths and career aspirations, offering mentorship programs and access to skill-building courses. As a result, engagement scores improved, and retention rates increased by over 25% in a year.

By showing employees that their growth matters, companies foster a culture where people feel supported and motivated to stay long-term.

Pallavi Pareek, Founder & CEO, Ungender

Implement a Generous Paid Time Off Policy

To build a culture that promotes employee well-being and retention, HR leaders should implement a generous paid time off policy. The policy should encourage employees to take needed time to rest and recharge. Leaders in the organization should model desired behavior by taking ample time off work. By offering employees a significant amount of paid time off and actively promoting its use, HR and company leaders will create a culture of work-life balance. Employees will take the time they need to prevent burnout, and they will stay with the organization long-term.

Susan Snipes, Head of People, Remote People