Employee retention

Employee retention refers to your ability to keep employees on your team over time.

Homebase Team

Min Read

What is employee retention?

Employee retention refers to your ability to keep employees on your team over time. It’s a measure of how long people stick around, and it says a lot about how happy, supported, and engaged they feel in your workplace.

For small business owners, high employee retention can be a game-changer. When your team stays with you, you save time and money on hiring, reduce training costs, and build a stronger, more consistent culture. Conversely, high turnover can lead to burnout, inconsistent service, and lower team morale.

Why employee retention matters for small businesses

In a small business, every person counts. When someone leaves, not only does their shift go uncovered, but their experience, customer relationships, and their impact on the team is gone too.

Improving employee retention helps you:

Save on recruiting and training costs
Maintain better customer service and consistency
Foster a stronger team culture
Boost productivity and employee satisfaction

And in a tight labor market, holding on to great people gives you a serious advantage.

Common reasons employees leave

Understanding why employees quit can help you fix problems before they happen. Some of the most common reasons for turnover include:

Lack of career growth or learning opportunities
Poor communication or unclear expectations
Inconsistent or unfair scheduling
Burnout or work-life imbalance
Feeling unappreciated or undervalued
Low or non-competitive pay

The good news is that small business owners can take action on these things.

How to improve employee retention

You don’t need big budgets or fancy perks to keep employees around, you just need to show that you care and offer a workplace where people feel seen, supported, and respected.

Here are some proven ways to boost retention:

Offer flexible scheduling when possible – Respecting employees’ time is a huge trust builder
Communicate clearly and often – Regular check-ins go a long way
Recognize hard work – A simple “thank you” or shift shout-out makes people feel valued
Support development – Teach new skills, cross-train, or offer small growth opportunities
Create a healthy workplace culture – Keep things positive, respectful, and fair

Even small efforts like celebrating milestones or asking for feedback can strengthen loyalty.

How to measure employee retention

To understand how well you’re doing, track your employee retention rate with this formula:

(Number of employees who stayed ÷ total number of employees at the start of the period) × 100

Depending on your business, you can calculate this monthly, quarterly, or yearly. If your number is low, use it as motivation to investigate what might be driving turnover.

How Homebase supports employee retention

Homebase helps small businesses create workplaces where employees want to stick around. With tools for team communication, scheduling, and recognition, you can make your workplace more organized, respectful, and connected.

Homebase gives you:

Shift scheduling that fits employee preferences and availability
Built-in messaging so your team stays informed and engaged
Tools to track attendance, breaks, and hours fairly and accurately
Performance tracking and shift feedback so employees can grow and improve

Want to build a team that sticks around and enjoys coming to work?

Explore Homebase’s employee happiness tools to make work better for your team and retention easier for your business.

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