Want employees to stay? Pay matters, but managers matter, too
Promotions, pay bumps and office perks can boost morale, but they’re often few and far between, especially during uncertain economic times.
When budgets are tight and hiring freezes stall career growth, managers may need to find other ways to keep their teams engaged. But sometimes, it’s less about the perks employees receive and more about whether they feel valued, supported and able to grow.
So, what actually motivates employees, and what can managers do to keep their best talent from leaving?
Here’s what workplace experts say about how to improve employee retention.
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What are the signs of a disengaged employee?
One sign of a disengaged employee is that they stop speaking up. Jaclyn Mayes-Avíla, an HR director with nearly 20 years of experience, says managers should pay attention when employees stop offering feedback or participating in conversations.
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“I think the biggest thing is people stop talking, they stop providing feedback, because they feel like what's the point?” she says.
Ashley Herd, an HR professional and founder of Manager Method, says employees may also become quieter when they feel speaking up is no longer worth it.
An employee may still be doing their job, but they might stop sharing ideas or raising concerns if they feel their efforts aren't being recognized or their feedback won't lead to change.
Other warning signs can include changes in personality, attendance, punctuality or work performance. But managers shouldn't automatically assume the problem is work-related. Mayes-Avíla says it's important to check in with employees and try to understand what's behind the change rather than jumping to conclusions.
Regular one-on-one conversations can help managers spot problems early and give employees a chance to be heard. Mayes-Avíla suggests asking questions such as, “give me two things that you enjoy about your job” and “tell me what you feel is a challenge for your job.”
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The goal is to understand what isn't working and what support an employee might need. As Mayes-Avíla puts it, “I want them to feel like they're being heard, I want them to feel like they're supported.”
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Does higher pay really retain employees?
While higher pay and bonuses can help with employee retention, salary alone doesn't necessarily keep employees engaged in their work.
“Pay can absolutely impact retention,” Herd says. She explains that getting a raise can make it harder to leave, particularly when employees weigh the financial benefits of staying against the uncertainty of switching jobs.
But “there's a big difference between retention and engagement, and both really matter,” Herd says. Employees may stay because leaving feels financially difficult, even if they aren't particularly invested in their work.
So what motivates employees beyond pay? Herd points to three factors: stability, respect and autonomy.
“Respect can mean being treated like a real human being” when mistakes happen, rather than feeling belittled, Herd says.
And autonomy can mean whether employees feel they “have control over things” in certain aspects of their jobs.
For employers looking at how to retain top talent, the takeaway is that compensation matters, but so does making employees feel respected, recognized and trusted.
A paycheck might give someone a reason to stay, but the way they're treated at work can shape whether they actually want to.
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