By zeroing in on engagement, investing in talent, and tailoring strategies to the diverse needs of the workforce, HR can position their organizations to thrive in 2025 and beyond.
By Maggie Mancini
Even as voluntary quits have been down throughout 2024, with employees hesitant to seek out new job opportunities in a tight talent market, retention has remained a top priority for employers, according to research from Gallagher. With organizations preparing for a spike in employee turnover in the new year, HR leaders are tasked with figuring out how to adapt and keep their workforces thriving into 2025.
“Retention isn’t just about reacting when turnover spikes during certain seasons. It’s an ongoing commitment,” says Renee Barber, global director of recruitment at TYR Talent Solutions. “As soon as an employee walks through the door, companies should be thinking about their long-term engagement and growth.”
This, Barber says, requires a mindset shift from treating employees as cogs in a machine to viewing them as valuable contributors whose development is aligned with business success.
When it comes to tailoring recruitment and retention strategies to suit the unique needs of the multigenerational workforce, understanding employee motivation is paramount, Barber explains. HR and business leaders must go beyond surface-level metrics and focus on what drives individual employees.
“It’s not just about salary,” she says. “What motivates people to do their best work? How can the company foster an environment where employees feel a sense of purpose and belonging? These insights are often surprising and can lead to more meaningful and tailored retention strategies that resonate on a deeper level.”
In today’s employment market, automatic, system-generated decline emails have become more common in the application process. This is largely because the ATS is reviewing resumes and looking for “keywords” that match the job description, says Amy Sharp, manager of client engagement and talent acquisition at TYR Talent Solutions.
“What we as recruiters need to focus on is not just what the need is now, but what the need will be in the future,” Sharp says. She explains that by examining and analyzing market trends, HR and recruitment leaders will have a better understanding of how each role will change in the future. For HR leaders, this means taking a closer look at cultural fit and soft skills, rather than trying to follow the job description word-for-word.
“Companies should also adapt to generational shifts and diverse needs, recognizing that motivation can look very different depending on where someone is in their career and life,” Barber says.
Throughout 2024, employers have grappled with how to keep employees engaged and productive amid The Big Stay. As organizations look to 2025, HR leaders must adapt their hiring strategies to stay competitive in a rapidly evolving workforce, Barber says.
“With The Big Stay creating longer tenures but also potential disengagement, the focus should shift from simply filling roles to investing in long-term talent development,” she says. “This means hiring for potential, prioritizing internal growth, and offering flexible, personalized work experiences that resonate with a diverse, multigenerational workforce.”
Companies should build stronger employer brands by aligning with employees’ values, fostering a culture of continuous learning, and leveraging technology to streamline recruitment and predict future talent needs, Barber says. By doing so, organizations can attract top talent and ensure long-term engagement in a competitive job market.
For HR leaders looking to prevent turnover and enhance loyalty among top talent, Barber and Sharp suggest taking these key steps.
- Create an internal strategy that values employee growth and engagement. “The core strategy for preventing turnover isn’t just about perks like flexible hours or remote work, though those can certainly help,” Barber says. Rather, it’s important to provide opportunities for employees to expand their skills and contribute to long-term projects. Building loyalty comes from making employees feel valued, seen, and involved, rather than simply passive recipients of a paycheck, Barber says.
- Connect employees to a larger purpose or mission. Don’t just make employees feel like they’re waiting to punch a clock, Sharp says. Build out an internal retention strategy that focuses on employee engagement and efficiency. This could mean more flexible working hours, frequent check-ins, or simply delegating tasks to help support growth and make employees feel like they’re part of something bigger.
- Shift the mindset on recruitment and retention. “It’s important to see retention and recruitment as continuous, long-term processes rather than seasonal responses to attrition,” Barber says. “A company’s success is directly tied to the satisfaction and growth of its people.”
By focusing on engagement, investing in talent, and tailoring strategies to the diverse needs of the multigenerational workforce, HR can position their organizations to thrive in 2025 and beyond, Barber says.
