Strategies for Improving Employee Retention in Small Businesses

July 15, 2024

Employee Retention

  • Offer competitive compensation and benefits to meet or exceed industry standards, ensuring employees feel valued and financially secure.
  • Invest in professional development opportunities, such as training and workshops, to show a commitment to employee growth and career advancement.
  • Create a positive and inclusive work environment where employees feel respected, valued, and part of the company culture.
  • Recognize and reward employee contributions through formal and informal programs to boost morale and loyalty.
  • Implement flexible work arrangements to accommodate diverse work-life balance needs, enhancing overall job satisfaction and retention.

646 words / 3 min. read

Keeping your team together is key, especially for small businesses. Think about it: every time someone walks out the door, it's not just a goodbye party you're throwing; it's time, money, and energy spent on finding someone new and getting them up to speed. Not to mention, it can really bring down morale when people are constantly coming and going. So, how do you keep your A-players happy and on board? Let's dive into some smart moves you can make to ensure your team sticks around.

 

Competitive Compensation and Benefits

Paying competitive salaries and offering good benefits is essential to employee retention. Studies show that low pay is the top reason people leave their jobs. In recent years, inflation has been a significant factor driving workers to look for jobs with higher pay, in addition to the opportunity to significantly boost earnings with a new starting salary, rather than waiting for incremental pay raises in their current position. Regularly review your compensation and benefits to ensure they're in line with industry standards. Be mindful of the potential impact of offering higher wages to new hires compared to long-standing employees who perform the same tasks. Such disparities can be taken personally by your current staff. To enhance workplace satisfaction, consider offering additional benefits like health insurance, retirement plans, and paid time off whenever possible.

 

Professional Development Opportunities

Investing in employee growth boosts their loyalty to the company. Offering training, workshops, and further education lets employees improve their skills and move up in their careers. A LinkedIn Learning report shows that 94% of employees are more likely to stick with a company that invests in their career development. When it comes to professional development, you don’t have to start something new. Look for opportunities that already exist with nearby schools or your chamber of commerce.

 

Positive Work Environment

Creating a positive and inclusive environment is one of the most important ingredients in workplace satisfaction. When employees feel valued and respected, they're happier with their jobs, and studies show that feeling part of the workplace culture makes employees more likely to stay. Bosses and team leaders play an important part of creating a positive work environment, with leadership experts emphasizing the value of fostering open communication, celebrating employee successes, and supporting a healthy work-life balance.

 

Recognition and Rewards

Regularly recognizing and rewarding employees for their contributions can boost their loyalty to the company. Setting up recognition programs like Employee of the Month awards or performance-based bonuses can encourage employees to do their best. Studies show that this kind of recognition can make employees more satisfied with their jobs and less likely to leave. Small businesses, in particular, should start both formal and informal programs to celebrate their employees' achievements. Need inspiration? Indeed published eight examples of employee recognition programs to create a thriving workplace culture. 

 

Flexible Work Arrangements

It’s no surprise that work flexibility tops the list for employee retention. From four-day work weeks, to hybrid work schedules, to unlimited PTO, there are many ways to give your employees more control over their work life. A Owl Labs study showed that more than 70% of workers agree that the option to work from home would make them happier. Not every small business can provide remote working opportunities, but that shouldn’t mean you ignore the cultural shift toward more flexible work expectations. If you’re looking to make improvements in work flexibility, start first with finding out what your employees want. Great Place to Work, a global organization dedicated to helping companies foster a positive workplace culture and employee experience, offers these strategies to help you think creatively and get started. 

 

The Takeaway

Small businesses can significantly improve employee retention by focusing on competitive compensation, professional development, a positive work environment, recognition and rewards, and flexible work arrangements. By addressing these key areas, business owners can create a workplace that not only attracts top talent but also inspires loyalty and dedication among their team members. Investing in these strategies is not just about preventing turnover; it's about building a thriving and engaged workforce that contributes to the long-term success of the business.

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The Leavenworth-Lansing Area Chamber of Commerce is a private non-profit organization that aims to support the growth and development of local businesses and our regional economy. We strive to create content that not only educates but also fosters a sense of connection and collaboration among our readers. Join us as we explore topics such as economic development, networking opportunities, upcoming events, and success stories from our vibrant community. Our resources provide insights, advice, and news that are relevant to business owners, entrepreneurs, and community members alike. The Chamber has been granted license to publish this content provided by Chamber Today, a service of ChamberThink Strategies LLC. 

NEXT EXIT: SUCCESS- 6 Moves to Make in 2026

August 26, 2025
Unless you've been living under a rock it's difficult to avoid all the posts about school starting back up again and summer being over. Why do those events matter? It means we're quickly approaching Q4 and that is the perfect time to review what has gone well for you this year and what has been a mounting challenge. While you may be laser-focused on holiday sales, year-end reports, and hitting those final quarterly goals, the savviest leaders know Q4 is also the time to zoom out. The decisions you make now don’t just impact your December and year end. They shape your success well into 2026. Business cycles move quickly. The economy, workforce, and technology will continue to shift in ways that reward businesses that plan ahead. Ready, Set, Go! Here’s how to get future-ready while everyone else is just trying to cross the 2025 finish line. Set Your Goals If you haven’t already done so, start by revisiting or creating a three-year strategy for your business. Businesses that thrive don’t just chase sales. They pursue a bigger vision. Use Q4 to review your long-term goals. Where do you want your company to be in 2026? Expanding into new markets? Adding product lines? Increasing automation? Achieving greater efficiency and cost savings? Write it down, get buy-in from the leadership team, and align next year’s goals with that north star. Break your vision into yearly milestones so it feels achievable, not overwhelming. When Strategy Stalls: 4 Moves to Regain Momentum ------------------- Invest in Movement Next, consider technology investments. AI, automation, and digital tools are having huge impacts on efficiency and cost-savings. If you wait until 2026 to get around to auditioning these “game changers,” you’ll be behind. Look at how technology can support your growth, through things like customer relationship management, e-commerce, or workflow automation. Starting small with a chatbot, productivity app, or scheduling tool today could free up enough resources to tackle bigger tech upgrades in 2026. 5 Genius Ways AI Can Stretch Your Existing Content AI for Small Businesses: Practical Steps to boost utility How Small Businesses Can Lead Innovation ---------------- Invest in People Your workforce also deserves attention. The talent pipeline is shifting, with Gen Z stepping into more roles and hybrid work remaining a hot topic. Businesses that build flexibility, invest in upskilling, and cultivate a strong culture now will have a competitive advantage in recruiting and retaining the right people. Additionally, add professional development to your 2026 budget. It’s one of the most powerful investments for long-term growth and employee satisfaction. If you can't afford professional development for your team, consider affordable solutions like what the chamber of commerce offers. Chamber member benefits cover all employees, which means they can attend the chamber events of their choosing and may be able to meet professional development goals through chamber trainings, webinars, and events. By bringing these opportunities to your employees’ attention you look like the rock star who's assisting them in their career pathing and knowledge attainment. The chamber may also have a mentor program that your employees can participate in. This can be a huge benefit for younger employees looking for guidance. Perks & Benefits Idea List – Available to Chamber Members The New Employee Benefit Everyone Is Talking About Recognition is Free—But It Might Be the Most Valuable Investment You Make The 2025-2026 Leadership Class is now accepting applications. Access here and return to: Office@LLChamber.com by September 15. --------- Check the Finances Financial resilience is another key to success. Interest rates, inflation, and shifting consumer habits make financial agility essential. Look at your cash flow, debt, and pricing strategies. What can you adjust now to weather uncertainty in the next two years? Diversifying revenue streams ensures your 2026 success isn’t dependent on one source of income. Money Management Tips for People Who Hate Money Management Get Ready! For Small Business Week Small Business Resource Round-up Mid Year reset ------------- Build Relationships Anticipating market shifts can also give you a competitive edge. Consumer values are evolving, especially around sustainability, health, and community. Businesses that align with these trends will have a competitive advantage. Pay attention to what your customers are asking for now. It’s often a preview of what will be standard in 2026. 5 Customer-Focused Strategies to Build Loyalty and Drive Growth Hospitality is the Hidden Edge: Why Emotional Connection Drives Customer Loyalty How to Build Loyalty Without Spending a Dime on Ads ------------------- Check-in with the Chamber Finally, strengthen your community and partnerships. No business succeeds in a vacuum. Your local chamber of commerce offers resources, advocacy, and connections that can give you a leg up in uncertain times.  Don’t just look to network—collaborate. Joint promotions, shared talent pipelines, or advocacy efforts can open doors you couldn’t access alone. Q4 is the perfect time to step back, not just step up. By thinking beyond the immediate hustle and honing your business strategy, you’ll finish this year strong and ensure sustainable, future-ready growth in 2026 and beyond. 10 Ways to Get the Most from Your Chamber Membership How to Build Business Connections (Even If You Hate Networking) Local Business Partnerships Strengthen Communities, Drive Growth Your Chamber Listing Matters More Than Ever! -------------------- Looking for information on making your landing page better? Need technical assistance? Visit here! Looking for sponsorship/event hosting information? Complete this form to let us know what you’re interested in. ---------------------- Christina Metcalf is a writer and women’s speaker who believes in the power of story. She works with small businesses, chambers of commerce, and business professionals who want to make an impression and grow a loyal customer/member base. She is the author of The Glinda Principle , rediscovering the magic within. _______________________________________ Facebook: @tellyourstorygetemtalking Instagram: @christinametcalfauthor LinkedIn: @christinagsmith

Regional Sourcing Turns Local Partnerships into Lasting Advantages

August 12, 2025
Local sourcing brings speed, quality, and deeper connections. Being nearby means more control and faster problem-solving. Investing locally builds community goodwill and brand trust. Start small today—test one item with a local partner. 579 words ~ 3 min. read Sometimes the best way to grow your business isn’t about going bigger—it’s about going closer. More companies are finding that partnerships with local suppliers aren’t just about where products come from—they shape how quickly a business can move, how closely it can control quality, and how much value it can create for customers and community. Speed You Can See When your suppliers are nearby, orders arrive while the ink on your sales order is still drying. Questions get answered before lunch. Product tweaks happen in days, not months. That kind of responsiveness means you can serve customers better and seize opportunities while they’re still fresh. A Front-Row Seat to Quality Working locally lets you see the process up close. You can step onto the production floor, smell the freshly cut materials, and shake hands with the people bringing your products to life. This connection makes it easier to uphold high standards, solve issues before they snowball, and create offerings you’re proud to stand behind. Partnerships That Feel Personal Local sourcing often turns into more than a transaction—it becomes a relationship. When your vendor is a short drive away, you’re not just an invoice; you’re a partner. That trust leads to creative solutions, extra care during busy seasons, and a shared investment in each other’s success. An Investment in Your Community Dollars spent locally ripple outward—supporting jobs, other small businesses, and local services. Customers notice when you make that choice, and it often strengthens loyalty. People like to buy from businesses that invest where they live, and they remember it. A Story Worth Sharing More customers want to know where their purchases come from. Being able to say, “We work with suppliers right here in our region,” isn’t just a point of pride—it’s a story people tell each other, and it builds trust faster than any marketing campaign. Your First Step Making the shift doesn’t have to mean rewriting your whole supply chain. This week, pull up your purchase list and choose one product or service to source locally. Make a call, ask a few questions, and see how quickly a handshake can turn into a partnership. Once you’ve tested the waters, you can decide where else local sourcing fits. The Bottom Line Local sourcing is about more than cutting costs—it’s about speed, quality, trust, and connection. It helps you deliver faster, control outcomes better, and strengthen your brand’s story. Global trade can move mountains, but local sourcing moves at the speed of trust—and that’s the kind of supply chain that lasts.  Read More: 5 Advantages to Localizing Your Supply Chain Local Business Partnerships Strengthen Communities and Drive Growth --- The Leavenworth-Lansing Area Chamber of Commerce is a private non-profit organization that aims to support the growth and development of local businesses and our regional economy. We strive to create content that not only educates but also fosters a sense of connection and collaboration among our readers. Join us as we explore topics such as economic development, networking opportunities, upcoming events, and success stories from our vibrant community. Our resources provide insights, advice, and news that are relevant to business owners, entrepreneurs, and community members alike. The Chamber has been granted license to publish this content provided by Chamber Today, a service of ChamberThink Strategies LLC.

Hiring in a Tight Market: Your Local Playbook for Finding and Keeping Great People

August 11, 2025
Why it matters: In a tight hiring market, top candidates disappear fast... sometimes within days. Small businesses can win by acting quickly and tapping into local networks. The advantage: Local employers can decide faster, offer flexibility, and connect with candidates on a personal level. How to do it: Post jobs where your community gathers, partner with schools, and reward employee referrals. Don’t stop at hiring: Recognize contributions, offer skill growth, and create a workplace people want to stay in. The bottom line: Speed + relationships = a strong, loyal team in any labor market. When the job market tightens, the best candidates disappear fast, sometimes in days, or hours. You might see a great résumé come in on Monday and find out by Wednesday they’ve already accepted another offer. In a market like that, slow hiring isn’t just risky — it’s a dealbreaker. The advantage for small, owner-operated businesses? You can move quicker, decide faster, and connect with people in a way big companies often can’t. You’re not just offering a job; you’re offering a place where someone can belong. The Current Local Hiring Landscape Right now, almost every “Help Wanted” sign in town is competing for the same small group of job seekers. Large employers might have fancier recruitment ads, but they also have layers of approval and corporate processes that slow things down. Local businesses can spot a great fit and make an offer in days instead of weeks. That speed, paired with a personal, community-focused culture, can tip the scales in your favor. Where to Source Candidates Locally The best hires aren’t always scrolling national job boards. They might be the student you meet at a Chamber mixer, the barista who remembers your order, or the neighbor whose cousin is looking for work. Go where people already gather: coffee shop bulletin boards, community Facebook groups, Chamber events. Build real relationships with local schools and training programs so you’re top of mind when they have graduates ready to work. And don’t forget your team’s networks: a good employee referral can bring you someone who already shares your values. Retention Tips That Work for Small Teams Hiring fast is important, but keeping people takes steady attention. Flexibility is one of the biggest advantages you can offer — whether that’s letting a parent leave early for a school event or working around a student’s class schedule. Small, thoughtful gestures like public thank-yous, a shared lunch, or a local gift card can make people feel seen and appreciated. And when you cross-train employees, you’re not just filling skill gaps — you’re showing them they have a future with you. A Local Case Study Consider a local retailer who hired a high school senior for weekend shifts. She could have been just another seasonal hire, but the owner saw potential and trained her in inventory, merchandising, and customer service. Within a year, she was running weekend operations and turning down offers from bigger stores. All because the owner acted quickly and invested early. Quick-Start Checklist for This Month Post your job in at least three local spots. Reach out to a school or training program. Refresh and promote your referral bonus. Plan one new way to recognize your team. Tell people you’re hiring at your next Chamber event. The Bottom Line When talent is scarce, every day matters. Small businesses that know where to look, move quickly, and create a place people want to stay will come out ahead. It’s not just about filling jobs — it’s about building a team that grows with you and strengthens the community along the way. Read More: 5 Professional Development Practices That Will Elevate Your Team's Success From Conflict to Collaboration: Turning Workplace Disputes into Growth Opportunities The Power of 'Entry Interviews' and 'Stay Interviews': Tips from Adam Grant Recognition is Free- But it Might be the Most Valuable Investment You make Rock Stars vs. Superstars: Who's Fueling Your Team's Future? --- The Leavenworth-Lansing Area Chamber of Commerce is a private non-profit organization that aims to support the growth and development of local businesses and our regional economy. We strive to create content that not only educates but also fosters a sense of connection and collaboration among our readers. Join us as we explore topics such as economic development, networking opportunities, upcoming events, and success stories from our vibrant community. Our resources provide insights, advice, and news that are relevant to business owners, entrepreneurs, and community members alike. The Chamber has been granted license to publish this content provided by Chamber Today, a service of ChamberThink Strategies LLC.