How to retain talent in 2025 and beyond

Though some core truths about successful retention persist, what causes one employee to remain and another to leave is nuanced, complex, and personal. The old playbooks for talent retention are gathering dust kicked up by the shift in employee expectations and fierce competition for certain in-demand skills. As we push past the middle of the decade, it’s time to reconsider what it takes to retain our talent. 

Keeping the talent that fuels our organizations’ success is a strategic imperative, one that requires a human-centric approach and looks beyond the bottom line to the heart of what truly motivates and engages people. It extends beyond a competitive salary and a good benefits package to training and development, relationships with managers, workplace flexibility, and other factors. 

We know there are difference-makers across our organization: key talent — not necessarily the most senior — who are the mountain movers, the idea engines, and the impact drivers. They are the 5% (or whatever the number is for your organization) who deliver 95% of the value. How do we identify, nurture, learn, and support them in ways that boost their retention? 

But it’s not just about the favored few. How do we also make sure our core talent across the organization, the majority of our population, feel they are also learning and supported to make a difference? We need great teamwork, which will ultimately deliver more than a few star performers.

Let’s remember that our top talent of today isn’t always our top talent of tomorrow. The playing field is shifting and the rules are being rewritten, so the agility and adaptability we’re asking of our talent base has to be applied to the way we think about retention in 2025 and beyond.

Understanding talent retention in 2025 and beyond 

The talent landscape is always being disrupted by a multitude of forces. In 1997, Steven Hankin of McKinsey & Company coined the term “war for talent” as the dot.com boom created a frenzy of talent poaching and job hopping. Back then, we were also predicting the retirement tsunami of baby boomers, as well as global talent shortages. 

Undeniably, AI is one of the driving forces in disrupting some jobs, creating others, enhancing productivity, and driving the need for upskilling and reskilling across the workforce. I will cover this aspect of retention in depth in my next blog. 

For now, there are often-overlooked dynamics at play as we consider how to adapt our talent strategies to these shifts: global talent dynamics, talent gaps affecting the future of HR, and generational workforce differences. 

Global workforce dynamics

Global birth rates are falling, leading to shrinking workforces, fewer consumers, and higher costs for social support systems, which can slow economic growth, innovation, and domestic markets, especially in wealthier nations. By contrast, in other areas, such as sub-Saharan Africa, there are higher birth rates, which presents challenges of job creation and investment in human capital but also opportunities for demographic dividends if managed well. 

Economic responses include policies to encourage births, investing in technology and automation, and adapting to aging populations and their economic effects. Scientific American outlines these trends and potential impacts well. 

But no research or scientific journal can tell us what will actually happen and what else we can’t imagine yet that may change these predictions. This is why we have to keep adapting and preparing for whatever is visible on the horizon.

Talent gaps affecting the future of HR

Reskilling and upskilling are clearly part of the answer. This need applies to about half of today’s global workforce, according to WEF. The good news is that training and development are key retention drivers. When we respond to talent gaps, we should naturally boost our retention, as well as help solve some of our key talent shortages. But of course, the answer is never this simple. 

Entry level jobs are in decline in many sectors, yet organizations report they are struggling to hire the skills and experience they need. We have a chicken-and-egg moment. Many new graduates, for example, are struggling to get a foothold in their first job — and yes, AI is partly to blame — while organizations are seeking more experience for entry-level jobs. 

As Peter Capelli of the Wharton School of the University of Pennsylvania said, “Everybody wants to hire somebody with three years’ experience, and nobody wants to give them three years’ experience.” 

The mismatch between our educational systems and the skills shifts needed in the modern workplace isn’t news. That tanker is turning, but it’s incredibly slow. In the meantime, I think this is where employers can create a win-win situation by formulating a talent strategy where they accept that both their current and future hires require training, reskilling, and support to bridge the gaps. 

One thing history shows us is that we can bet on human adaptability with a high probability of success. This requires shifting our definition of what constitutes the “right” hire. Let’s face it, there is no perfect candidate; we’ve always traded off on some things. We need to place more emphasis on demonstrated capabilities to learn and to apply skills in new settings, as this Deloitte research shows. 

We also need to give closer scrutiny to the balance of technical and nontechnical skills people demonstrate, whether they are a new hire or a current team member. By nontechnical skills, I mean those “soft skills” that can be the hardest to assess and change but make the difference in building a more future-ready workforce.

Generational differences in the workforce

Much is made of generational workforce dynamics. While workplaces now span from Gen Z to baby boomers — and the oldest Alphas born in 2010 will be arriving soon — let’s remember these definitions came from writers, theorists and the like. Marketing has long used such constructs to assign consumers to various segments and ascribe various patterns of assumptions, behavior, and expectations to them. In my view, it’s not something we should use too heavily in considering our workforce. 

I think it’s more helpful, however, to consider the diverse expectations and needs of our workforces, along with what binds the human experience together. 

We need to debunk false stereotypes and focus on shared values first. Who doesn’t want to feel appreciated and a sense of belonging? Have a sense of purpose and accomplishment? Feel supported to learn and grow? Such factors aren’t generational, they are human conditions to survive and thrive. 

Perhaps Maslow was right about the hierarchy of needs. While interpretations of his theory vary, when it comes to talent retention, we should remember what happens when people have unmet needs: They are motivated to fulfill what they are being denied or feel is deficient, and they will be more inclined to work on closing those gaps, including seeking opportunities elsewhere. 

Our challenge (and opportunity) is to understand these unmet needs and make it easier to support both them and their managers finding, understanding, and using what we make available.

Yet I think it’s relevant to consider generational expectations around communication and digital tools. This isn’t to say, for example, that savviness with tech is an age thing — I’m the first to be offended with this suggestion. But we have to have an understanding of people’s preferences. 

My Gen Z digital-native son is more comfortable texting or messaging on his phone than talking directly. He welcomes AI enhancements and wants to consume content in short, digestible chunks, as well as video, but even then, there are time limits. I can share some of these preferences, but since my lived experience is different, my perspective on what is served up to me and how will be too.

Forces influencing talent retention best practices

With these macro forces impacting the global talent agenda, profound changes in retention should come at no surprise. They are the direct result of a series of interconnected, powerful forces that have reshaped the global economy, technology, and society itself. 

Our conversation around retention is being shaped by other factors, as well, foremost among them: shifts in technology and transparency, and flexibility in where, when, and how we work.

Technology and transparency

A few years into my first job out of college, I was ready for a change so I applied to a job advertisement in “The Sunday Times” of London. I landed that job via a written letter application and a series of in-person interviews. Yes, quaint, I know. Back then, job searching required a different kind of effort — not saying it was easier or harder, just different — and was more cumbersome and slower moving. Fast forward to today and various job platforms make applying a few clicks away or, if you harness AI, it can automate your applications. 

Technology has made it way easier for employees to see what is out there. This means we have to work harder to be sure our employees understand the opportunities available within our organizations — before they go update their LinkedIn profiles. We need to make it incredibly easy for employees to learn, grow, get involved, move roles, and more.

We need to leverage technology to enhance our employee experience and generate greater transparency to purpose, strategy, support, and information, as well as to building community and connections. 

Transparency gives us greater power and agency over our decision-making. If job platforms and other innovations have made employees more aware of their market value and career options, then this raises the bar for employers to work harder at making their internal “marketplace” more attractive.

Ask yourself, what technology do you have internally that in any way competes with the platforms and plethora of information available to your employees in the wider world? The technology we’re using internally hasn’t moved at the same pace. 

Don’t wait. Retention is no longer simply a factor of HR programs and good managers. It’s also about more access and transparency to information, people connections, and more. This is what will make your organization, culture, and internal opportunities more attractive to your people.

Hands up if you are still using the same cell phone you had back in the 1990s or early 2000s? Likely no one is. Now think about what technologies you primarily use to support your people in finding information, learning about purpose and strategy, hearing from leaders, connecting to others, and accessing resources to learn and grow. When were they purchased and installed? As important, has the pace of innovation from those purchases kept pace with what’s out there? 

Given the role technology plays in retention, I ask myself these questions when assessing new software: 

• How steadily are my tech partners pursuing innovation?
• Are they actively investing in the areas that matter to me?
• What is their view of the future and does it align with ours?
• Can I unify the user experience as much as possible?

Your employees are already using better technology in their personal lives. Your workplace tools should match that experience.

Flexibility in where, when, and how we work

Technology has clearly enabled the shift to more remote and hybrid work by providing the tools for communication and collaboration across distances. This has fundamentally decoupled work from a physical office, making flexibility in when, where, and how employees work an increasingly nonnegotiable expectation. 

The economic uncertainty following the 2008 financial crisis, and especially the COVID-19 pandemic, caused a fundamental reevaluation of work for many. The pandemic forced a global work-from-home experiment that proved many jobs could be done effectively without a daily commute. This period of reflection led millions to shift their priorities and reevaluate how and where they worked. Though these dynamics continue to evolve, some things have been forever changed. 

Hybrid and remote work are just one aspect of flexible arrangements. Work schedules and autonomy are another essential component. Greater predictability, stability, and control leads to higher retention and other positive outcomes, according to Gallup’s 2025 American Job Quality Study. Flexibility can mean different things to different people, so we must listen to employee perspectives to understand which dimensions matter most to them.

Another dimension of flexibility is the growth of the gig economy. In 2024, the gig economy had a market size of $556.7 billion, according to the WEF, a number expected to more than triple to $1,847 billion by 2032. The rise of the gig economy has accustomed a significant portion of the workforce to a model of work based on autonomy, project variety, and the freedom to be their own boss. Side hustles are on the rise — most of all in the 18-35 year-old group, where in the US nearly two-thirds of them already have, or plan to start, a side hustle. 

Now, let’s be real, inflation and desire for greater financial security is partly behind this rise, but so is the gig flexibility. Add a rise in remote working to the mix and you’ve got an interesting cocktail that’s making it easier for our employees to grow a second career that, for some, will become their main career, leading to turnover. All of this to say, we’re living through major shifts in the global talent landscape, which means that rethinking talent retention is probably long overdue. In the face of all this change and uncertainty, how should we respond? Let’s first understand what drives retention.

5 core drivers of talent retention 

The drivers of employee retention have changed from the turn of the millennium to today, reflecting a fundamental shift in the relationship between employers and employees. While some core factors remain, their relative importance and the way they are addressed have been completely reshaped, while other factors are rising in importance. 

For a good part of my career I worked in consulting. Willis Towers Watson did some great research every year that tracked the shifts in what it takes to attract, retain, and engage workers. While the ranking order would shift between the classic drivers of retention, pay, benefits, and relationship with one’s manager were routinely in the top three. This was generally consistent across industries and countries. 

Over time, factors such as flexibility started to creep into the top 10, then inclusion and belonging, and other dimensions. Today, the top five drivers of retention are a mix of traditional and more modern factors, reflecting the evolving expectations of today’s workforce. 

While specific rankings may vary across different industries, the following consistently emerge as the most critical: 

1. Career development and growth opportunities

All employees — top talent especially — are motivated by the potential for career progression and learning. This goes beyond a simple promotion to include upskilling, reskilling, internal mobility, and clear, transparent career pathways. When an employee can see a future for themselves at a company, they are far more likely to stay.

The “job for life” is gone, replaced by the “career for life.” Employees expect continuous learning opportunities and the chance to move into different roles within the organization. This requires rethinking rigid, hierarchical structures and looking differently at how you can tap into the talent pool inside your organization. A company’s investment in an employee’s future is a strong signal of its commitment — and a powerful retention strategy. 

Much has been written about this over the last decade or so, and I recommend reading The Inside Gig by Edie Goldberg and Kelley Steven-Waiss for more. 

2. Holistic employee well-being

This driver has risen in importance over the years. It’s a broad category that includes mental, physical, and financial health. Flexible working arrangements that prevent burnout are also a factor. A work environment that prioritizes an employee’s overall well-being is seen as a sign of genuine care, which can be a strong retention tool. 

Our thinking on well-being is also expanding to embrace dimensions such as social well-being — a sense of belonging and connection — and career well-being. Let’s not forget digital well-being, which is increasingly a factor in frustration and burnout, which contributes to turnover. 

3. Quality of people managers

The old adage “people don’t leave companies; they leave managers” remains true. Effective managers who lead with empathy, provide clear direction, and offer regular, constructive feedback are key to a positive employee experience. A supportive and trusting relationship with a direct manager is a primary reason employees choose to stay. 

Managers account for 70% of the variance in employee engagement scores across groups, according to Gallup. 

Let’s remember that this tone starts at the top. Executives who lead with empathy and clarity, build trust, and support their managers can have a powerful impact on retention. 

4. Flexible working arrangements

As I discussed earlier, the expansion of hybrid and remote work models has fundamentally changed employee expectations. Offering flexibility in where and how work gets done is no longer a perk but an expected practice in certain sectors. 

Companies that fail to provide autonomy and work-life balance through flexible policies are at a significant disadvantage in the competition for talent. 

Let’s not leap to the assumption that we can AI-our way out of this — we can’t. According to the US Bureau of Labor Statistics, the majority of jobs with the greatest number of vacancies are often frontline roles that AI can assist but not replace. Turnover in many of these roles, e.g. retail and hospitality, tend to be higher, and the flexibility over things like schedule, hours, and other factors provide a meaningful boost to retention.

Employees in hourly roles want the flexibility to work when they can be their most productive, according to Legion’s 2025 State of the North American Hourly Workforce Report. Flexible working is a modern workplace desire for most of us. We need to give employees more control over their schedules, work-life boundaries, and career paths.

5. Compensation, benefits, and other rewards

While it may not always be the singular reason for leaving, an uncompetitive compensation package can be a major driver of turnover. This includes not only salary but also comprehensive benefits, bonuses, and other perks. We’ve long understood the importance of such programs. What’s shifting is how we communicate, educate, and provide access to them

A major problem is that communications often lack relevance and personalization. Programs are often perceived as generic; employees are more likely to value programs tailored to their individual needs. 

54% of surveyed employees said they wish they had personalized benefit recommendations, while 50% said having a better understanding of their benefits would make them more loyal to their employer, according to the 2023 MetLife Employee Benefit Trends Study.

The 2025 MetLife study revealed that 38% of surveyed employees struggle to understand communications around benefits and open enrollment. This goes beyond satisfaction with the communication itself; employees who understand their benefits communications are almost twice as likely to trust leadership compared to employees who don’t.

This is where modern technologies that “learn” the user, serve up only relevant answers and information, and are easy to access in one unified place are an important component in mitigating retention risk.

In today’s economy, where cost of living is a major concern, ensuring a competitive and equitable total rewards package remains a foundational element of any successful retention strategy. In addition, organizations with a strong culture of recognition can also see a boost in retention. Recognition programs are direct ways of showing people they are valued and appreciated not only for what they do but also for who they are.

Rethinking talent retention as a living system 

As we think about what drives retention for our organizations, we have to first understand the complexities. Why is employee retention so hard to solve? We “fix” comp, but then the quality of our managers is a problem, so we emphasize well-being and other benefits, then flexibility jumps to the fore. It’s complex and increasingly fluid.

If only it was as simple as fixing a leaky tap. Retention is more like tending a garden. You can’t just water it once and expect it to flourish. It requires constant, thoughtful attention. 

Some plants need more sunlight, others more shade. Some need more water, others less. Some love to stay in one spot for a long time, some love to be moved around. You have to understand the unique needs of each plant and the overall health of the entire ecosystem. If you neglect the soil (your company culture), pests (poor management) will take over, and weeds (unclear communication, lack of purpose) will choke out your prized blooms (your top talent). 

The challenge isn’t just one problem to solve but a complex, living system to nurture and tend to every single day. 

The path forward for HR professionals

To thrive in the new era of work, concentrate on these five essentials: career development and growth opportunities, holistic employee well-being, the quality of people managers, flexible working arrangements, and competitive compensation and benefits. By nurturing these areas, you can create an environment where people feel valued, supported, and motivated to stay.

Retention will continue to become even more of a strategic challenge, focusing less on simply keeping a seat filled and more on creating an environment where the most talented and dynamic individuals choose to stay because they are constantly learning, growing, and doing the most meaningful work of their lives. The “war for talent” won’t end; it will simply be fought on new frontiers. 

Now is the time to act. Take a fresh look at your retention strategy, understand what’s working and what’s not, and get ready to adapt. The most successful organizations won’t just react to change — they’ll anticipate it and use it to their advantage.

How Simpplr can help

Employee retention depends on more than pay and perks — it thrives on connection, growth, and clarity. Simpplr helps organizations strengthen these foundations by giving employees a connected, personalized experience at work. Our AI-powered employee experience platform unifies communication, knowledge, and workplace services in one platform for greater engagement and productivity. 

With Simpplr, organizations can:

• Strengthen communication so employees can easily understand learning and development resources and total rewards programs
• Boost career growth and mobility by making internal opportunities, training, and resources easy to find
• Support well-being and inclusion through transparent communication and recognition tools that build connection and belonging
• Enable flexibility with mobile-first access, helping employees stay connected wherever they work
• Personalize experiences with AI that adapts to each employee’s role, interests, and goals

Instead of another program or point solution, Simpplr becomes the trusted digital work hub where employees stay engaged and see their future with the company.

Ready to learn how Simpplr can support your talent retention strategy? Request a demo today.