6 Real-World Retention Challenges (Shared by Actual Employers) & How to Solve Them

Although more employees are staying put and quit rates have declined, some form of turnover is inevitable for just about every company. Whether you lose one employee or 20, turnover drains resources, disrupts team morale and dynamics, and stalls business growth.

To find out more about the most pressing roadblocks to keeping associates aboard, we asked the 210 employers who responded to our 2025 Talent Retention Survey an open-ended question:

What is your organization’s biggest challenge in retaining employees?

Their responses revealed both common and unique struggles – from offering competitive pay to preventing stress and burnout. Below are six notable themes that arose from employers’ comments, with direct quotes and practical solutions for how to retain employees.

Retention Challenge #1: Unsatisfactory Pay

Not surprisingly, offering competitive pay was the most frequently cited challenge, mentioned by nearly 30 survey respondents. In today’s market, employees know their worth and are willing to seek it elsewhere if you can’t keep up.

Employer Quotes:

“Keeping employees’ salaries commensurate with the market.”

“Competitive pay. We have a tremendous Employee Stock Ownership Plan (ESOP) or retirement that we invest in, but sometimes employees see only the take home compensation.”

The Solution:

To reduce turnover related to unsatisfactory pay, educate your team on the total value of their compensation package, including salary, bonuses, retirement contributions, and insurance.

However, you must also ensure your base pay is competitive. Conduct regular market analyses to benchmark your salaries against industry standards. If you can’t match the highest offers, consider performance-based bonuses, profit-sharing, or transparent pay-raise schedules to show employees a clear path to earning more.

Retention Challenge #2: Negative Company Culture

While providing competitive compensation was the top retention challenge employers reported, some respondents pointed out issues with their company’s culture. In fact, more employees surveyed quit jobs in 2025 due to toxic or negative work environments than unsatisfactory pay – showing just how critical culture is in retaining and engaging staff.

Employer Quotes:

“Culture has become very somber.”

“Adjusting to unique culture of two entities under one roof and the continual changes that go with this from a recent acquisition and adjustment.”

The Solution:

Building a positive culture takes intention and transparency – and that can be even more challenging after a merger, acquisition, or other major company change. Start by facilitating open conversations about the changes, giving employees a safe space to ask questions and share their concerns. Engage your team in shaping your culture by inviting feedback and involving them in decision-making wherever possible.

Simple steps like celebrating small wins, sharing progress updates, or launching new team-building opportunities can help renew a sense of connection and purpose. Importantly, leaders should model the values and behaviors they wish to see, offering consistent support as everyone adjusts.

Retention Challenge #3: Burnout & Lack of Work-Life Balance

The daily grind can wear people down, especially in demanding roles. Burnout and a poor work-life balance are major drivers of turnover, pushing even the most dedicated employees to look for a healthier environment.

Employer Quotes:

“A combination of burnout from long shift durations, exhaustion from physical demands of the job.”

“The long hours required for the job.”

The Solution:

Addressing burnout requires a multi-pronged approach. First, review your scheduling practices. Can you implement shorter shifts, offer more frequent breaks, or rotate physically demanding tasks among team members? Next, foster a culture that prioritizes well-being. Encourage employees to use their vacation time and disconnect after hours.

Furthermore, if long hours are an unavoidable part of your business model, focus on making them as manageable as possible. Ensure your compensation reflects the extra time commitment. You can also offer flexibility where possible, such as compressed workweeks (e.g., four 10-hour days) or hybrid options for any administrative tasks. Acknowledging the demanding nature of the job and actively seeking ways to mitigate its impact shows employees you value their time and well-being.

Retention Challenge #4: Poor Management & Leadership

As the saying goes, employees don’t leave companies; they leave managers. Poor leadership, inconsistent support, and a lack of appreciation can quickly erode trust and motivation.

Employer Quotes:

“We need to provide better management training; employees leave because of their managers.”

“Collaborative communication from leadership members during change. Feeling under appreciated by leadership.”

“There is inconsistency in the support provided to team members by different managers. Information, development, and feedback are so inconsistent between different managers and teams.”

The Solution:

Strong leadership starts with training. Equip your managers with the skills and tools they need to lead effectively. Implement standardized processes for communication, feedback, and performance reviews across all departments. Regular check-ins between senior leadership and managers can also help identify and address inconsistencies before they become major problems.

Clear and consistent communication – especially during times of change – is also vital. Keep your team informed about what is happening, why it’s happening, and how it will affect them. And, to combat feelings of underappreciation, build recognition into your company culture. This can be as simple as a personal thank you, a shout-out in a meeting, or a formal rewards program.

Retention Challenge #5: Few Growth & Development Opportunities

Employees want to see a future for themselves at your company. A lack of growth opportunities is a clear signal that it’s time to move on.

Employer Quotes:

“Limited opportunities for growth.”

“Lack of growth opportunities.”

“Providing on-site training opportunities.”

The Solution:

Offer plenty of avenues for professional development, such as online courses or industry certifications, to show commitment to employees’ career advancement. These initiatives help employees build new skills and stay engaged.

If promotions are not in the cards, focus on creating lateral growth opportunities. This could include cross-training in different departments, leading special projects, or participating in mentorship programs.

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Retention Challenge #6: Hiring the Wrong People

Retention begins with recruitment, which is why some companies have trouble with turnover when their new hires aren’t quite the right fit.

Employer Quotes:

“The majority of our turnover has been from new hires that did not work out. It has been very difficult to find good applicants. Many will ghost the interview, some use AI to build their resume that does not properly reflect who they truly are, and many will leave off or falsely embellish their skills and employment history.” 

“Finding employees with the right experience and work ethic.”

"Half of the problem occurs even before a prospective employee is even hired – that is –    actually showing up for the interview. Our last three candidates did not even bother to show up for their interviews. When we do hire someone, it is difficult to get honest feedback about their feelings toward the job. Most people will say that they love the job but then do not show up after a while."

The Solution:

A difficult hiring market makes retaining your current team even more important. While you can’t control the applicant pool, you can refine your hiring process to better vet candidates. Implement behavioral interview questions to assess work ethic and use skills tests to verify qualifications.

Moreover, don’t forget the importance of the employee experience from the very first touchpoint. A poor candidate experience can signal a disorganized or indifferent company culture to your current employees. Streamline your hiring process to be respectful of candidates’ time and communicate clearly and promptly at every stage. When your team sees that the company values people even before they are hired, it reinforces their own sense of value within the organization.

Bonus Quotes: 6 Unique Retention Challenge Cited by Employers

Not every survey response fit into an overarching theme, but were unique enough to include to demonstrate how retention challenges vary from business to business. Here are six additional survey responses:

“Employees understanding in order to keep their position they need to show up for work, work, and contribute to the business.”

“Being located in a rural area where we consistently lose folks to the larger, metro areas for ‘more things to do.’”

“Biggest challenge is employees quitting without prior notice due to getting better pay [elsewhere] after gaining experience.”

“The company is experiencing low sales and business. This is why we had to let go about 20 people this year.”

“Guaranteeing hours. We work with clients and only get paid when we see them. Cancellations by the clients mean that hours are not guaranteed to employees.”

“When one leaves, then another follows.”

Solving Employee Retention Problems

Employee retention isn’t about solving one problem; it’s about understanding a combination of factors, from compensation and leadership to growth opportunities and workplace culture. By addressing these challenges, you create an environment where employees feel valued, supported, and inspired to stay.

For more retention tips and turnover statistics, check out our 2025 Talent Retention Report and extensive Employer Resource Center.