Develop a Strategy to Reduce Turnover and Drive Results
Employee retention isn’t magic. It requires leaders to develop a clear, specific strategy. HR needs to understand why people stay, what makes them leave, and how to close that gap at your unique company.
That’s where your retention plan comes in. It should identify your biggest retention risks, set clear goals for improvement, and outline specific actions you can take to keep people engaged.
Read this guide to learn all about employee retention plans: what they are, why they matter, and how to create one for your company. Then, use our free employee retention plan template to design yours.
What Is an Employee Retention Plan?
An employee retention plan is a strategic document that outlines how your company will keep valuable employees engaged, satisfied, and committed to staying on the team. It identifies the most pressing retention challenges at your company and identifies solutions, steps, and strategies to address them.
Note: Your plan should be tailored to solve the problems impacting your unique team, not just generic issues affecting the industry.
Elements of an Employee Retention Plan
Your retention plan needs specific components to drive real results. Here’s what to include:
Current Retention Data
Calculate your overall turnover rate, then break it down by department, role, tenure, and, if relevant, employee demographics. The numbers reveal which teams lose the most people and when employees typically leave. This baseline shows you where to focus your efforts.
Root Cause Analysis
Analyze exit interviews, survey data, and manager feedback to learn why people actually leave. You might be facing compensation issues, management problems, a lack of growth opportunities, or cultural misalignment.
Clear Retention Goals
You can’t drive change with vague aspirations. HR should set SMART goals: specific, measurable, achievable, relevant, and time-bound.
Objectives like “lower turnover rate” won’t get you very far.
On the other hand, “reduce turnover in the sales department from 28% to 18% within 12 months” gives HR a clear direction and purpose.
Targeted Action Steps
Each initiative should directly address a root cause you’ve identified. If people leave because of limited career development, your plan might include a mentorship program, skills training opportunities, and an improved internal mobility process. Be as specific as possible when you communicate new initiatives to employees.
Timeline and Ownership
HR leads the overall retention effort, but managers own the day-to-day work of keeping their teams engaged. Assign responsibility for each initiative and establish realistic deadlines. Accountability is the key to long-term success.
Success Metrics
Alongside basic employee retention metrics, HR leaders should track employee engagement scores, time-to-fill for open positions, internal promotion rates, and pulse survey results. These indicators will show you whether your initiatives are working before people actually leave.
How to Write an Employee Retention Plan
Follow these steps to start drafting your retention plan.
1. Complete an Initial Assessment
Pull turnover reports from your HCM platform, and then calculate retention rates by department and role. Do people tend to quit after five years? Is turnover higher in some departments? These baseline metrics will show you which issues need attention and allow HR to track progress over time.
2. Collect Employee Feedback
Your current employees know what’s working and what isn’t. Run engagement surveys, conduct stay interviews with high performers, and review recent exit interview notes. This data helps you understand what drives retention vs. turnover for your unique workforce.
3. Set Your Objectives
Use the data you’ve collected to define success and establish SMART goals that address your retention challenges. For example, if your sales team has 10% turnover and the industry average is 5%, that’s your target. Connect each objective to a specific business outcome.
4. Plan for Implementation
Map out specific employee retention strategies that will help you reach your goals. Assign owners for each action item, establish timelines, and identify the resources you’ll need. Three well-executed initiatives will deliver better results than ten half-finished projects.
5. Use an Employee Retention Plan Template
There’s no need to start from a blank document. Working from scratch takes more time, duplicates work, and increases the risk you’ll miss something important. A customizable employee retention plan template offers helpful prompts and suggestions, empowering HR to focus on big-picture strategy instead of finicky formatting.
6. Review, Assess, Refine, & Repeat
Schedule quarterly reviews to track your progress, gather ongoing feedback from employees and managers, and then adjust your strategy based on your most recent data. The best retention plans grow and change to meet your company’s current needs.
How Paycor’s Employee Retention Plan Template Helps
Paycor is a comprehensive HCM software with powerful resources leaders can use to boost retention. Our free employee retention plan template gives you a proven framework to address turnover and drive long-term business success.
The template includes sections for each component: analyzing retention data, identifying root causes, setting measurable goals, and tracking progress. You’ll get prompts to guide your thinking at each step, helping your HR team map out initiatives and measure improvement.
You can customize every section to fit your company’s unique needs and update the plan over time to reflect changing priorities. Download it once and use it year after year as your company grows.
Download Your Free Staff & Employee Retention Template
Ready to build a retention plan that works for your organization? Download Paycor’s free employee retention plan template and start addressing your biggest turnover challenges today.
The template includes everything you need to create a comprehensive plan, tailored to your team’s unique needs. Start using it immediately and update it as your company grows.
Employee Retention Plan Template FAQs
Get answers to common questions about using an employee retention plan template.
What is inside the employee retention plan template?
The template includes sections for analyzing turnover data, identifying why employees leave, setting retention goals, planning initiatives, and tracking results. You’ll find prompts and worksheets to guide you through each step of building your plan.
Is the employee retention template customizable?
Yes. You can adapt every section to fit your organization’s structure, challenges, and priorities. Add or remove sections based on what your team needs.
Who should use and fill out this retention plan template?
HR leaders typically own the retention planning process, but managers and department heads should contribute relevant ideas. The most effective plans include perspectives from across the organization.
When should I use this retention plan template?
Customize the template and create your initial plan during annual planning cycles. Don’t wait for turnover to start affecting your bottom line. Update your plan quarterly to reflect changing priorities and track progress.