According to 200 HR Leaders surveyed in Amplify’s annual HR Trends Report, these are the top factors that companies are willing to offer their employees to help with Employee Retention in 2024.
This year, companies are putting a higher priority on employee development, with Learning & Development, leading the change in HR initiatives. For the 5th consecutive year, Work/Life Balance remains the paramount factor in attracting talent, while Company Culture also takes precedence over Pay.
Below are the top factors that will effect employee retention in 2024.
1. Work/Life Balance
Work/Life balance has taken over as the top retention factor offered to employees, surpassing Pay for the first time since 2021. While Company Bonus/Profit Share continues to grow in popularity as a benefit they are no longer the top factor, Company Culture and Employer Brand—are now emerging as primary focal points for retention.
2: Leadership
Leadership continues to be one of the highest retention factors offered by companies, being in the top two factors in 2024 and increasing in importance since 2022. Leadership has surpassed other elements, such as Pay, in the workplace environment. This change is reflective of a more general shift in organizational dynamics, where factors such as work-life balance, career development opportunities, and company culture are increasingly valued by employees.
3: Pay
According to our survey, the third most popular retention factor offered to employees is Pay, despite being the leading retention factor since 2021. This factor continues to be a major priority for companies; however, Work/Life Balance has become a higher priority for retention over Pay in 2024.
4: Company Culture
Company culture, after ranking 7th in 2023 and not even making the top ten the years prior, is now the 4th most popular retention factor provided by the companies questioned, seeing the biggest change as a retention factor. From our HR Trend Report, it is obvious that the two factors determining the company’s essence are Company Culture and Employer Brand.
5: Employee Recognition
Perhaps unsurprisingly, Employee Recognition remains a priority for companies, as it has reigned in the top 7 retention factors for the past 5 years!
See the graph below showing how Retention factors in companies have changed over the past year.
