Guide to employee retention: how to keep your best talent

Frequently asked questions

How do you calculate your retention rate?

You cannot improve what you do not measure. Start by establishing your current retention rate.

Choose the time window to assess — for example, the past year or the last quarter. Then collect two figures:

1. The number of employees at the start of the period

2. The number of employees at the end of the period (excluding any new hires)

Then apply this formula to calculate staff retention rate:

For example, if a quarter began with 162 employees and finished with 170 employees, 20 of whom were new, the calculation is:

((170-20) ÷ 162) × 100 = 92.56%

Subtract new hires so you don’t inflate retention figures. For example, if you have 100 staff and add five with no departures in three months, your retention would appear as 105%. Removing new headcount yields a truer result.

Over longer periods some people may join and leave within your measurement window. In those cases, calculate a separate new-hire retention figure using new hires added versus new hires remaining. So, if you hire 20 people in three months and one leaves, the new-hire retention is:

((20-1) ÷ 20) × 100 = 95%

Generally, retention rates above 90% are considered strong. For new hires, you should aim for 95% or higher, since recent starters are more likely to depart within months.

The roles with the highest turnover are product (36.4%), information technology (36%), and engineering (35.2%).

Employee retention tactic:

Calculate retention separately for in-office and remote teams. A gap may indicate remote staff feel less supported than those onsite.

Why does top talent choose to leave?

Bear in mind that turnover differs by sector: retail, tech and media, professional services, entertainment, and accommodation show lower-than-average employee retention. If your organisation sits in these industries, your target retention rate may be lower than the global benchmark.

If your retention is below expectations, you should explore the reasons why people choose to leave.

McKinsey’s 2022 Great Attrition, Great Attraction Survey 2.0 highlights key reasons people quit. The top factors cited are:

1. Lack of career development and advancement

2. Inadequate total compensation

3. Uncaring and uninspiring leaders

4. Lack of meaningful work

5. Unsustainable work expectations

6. Unreliable and unsupportive colleagues

7. Lack of workplace flexibility

8. Lack of health and wellbeing supportA non-inclusive and unwelcoming community

Addressing these issues internally is essential to secure the advantages of strong remote retention. With those reasons in mind, let’s review the most effective ways to improve retention at your company.

The role of equitable global compensation in staff retention

Employees are more likely to stay when they feel respected and treated fairly. Both evidence and common sense point to equitable pay as one of the easiest starting points.

Why is equitable compensation so important?

When staff feel their pay reflects their skills and is fair compared with colleagues, their satisfaction and motivation rise.

Equitable pay is a foundation for retention. A clear compensation philosophy builds trust and encourages employees to perform and stay.

Paying your team appropriately matters, but it can be complex. To help you get it right, see our guide to remote worker compensation.

How to design a benefits programme to retain top global talent

Companies that permit remote work have lower turnover than those that are office-only. Remote’s research estimates this gap will widen to 4.4% in 2023.

To attract and keep a global workforce, offer a locally tailored, globally competitive benefits plan.

Avoid a ‘one size fits all’ benefits approach. Local needs and cultural norms should inform benefits design. Doing so helps attract talent and, crucially, supports retention.

Joana Viana, Senior Global Benefits Design & Strategy Expert

To tailor benefits packages and compete with local employers, you need detailed local insight.

Let’s consider an example:

In the UK

Offering a medical plan with maternity cover in the UK is unlikely to impress because free NHS healthcare—including maternity care—is already available.

In Singapore

By contrast, a medical plan with maternity cover in Singapore will likely improve an employer’s appeal. Maternity care there can run into thousands of dollars, so such cover reassures prospective parents. In Singapore, maternity healthcare can end up costing thousands of dollars, so anyone considering parenthood would feel reassured to have this type of cover as part of their benefits package.

Local insight is pivotal when designing benefits, but compiling it internally can be time-consuming. That’s why we produced the Global Benefits Report, which lets businesses compare preferred benefits across countries quickly.

Need extra support with your global benefits strategy?

At Remote, we connect businesses with local benefits experts who clarify mandatory and optional benefits. We also provide curated country-specific plans, saving companies time and expense.

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"Remote helped us build loyalty with employees by providing world-class benefits and the rights that come with being employed locally."

Heather Miki, People Operations Manager @ kWh Analytics

"We wanted to grow our presence in Mexico quickly without handling incorporation, payroll, and benefits ourselves. Remote enabled exactly that."

Greg Kefer,CMO @ Lifelink Systems

Build a remote-first culture to manage global teams effectively

Remote-first companies benefit everyone, not just remote staff. By adopting remote-first practices you create a fairer experience for all employees regardless of location. Emphasising documentation, asynchronous work practices, and a results-focused culture improves outcomes across the board. Here’s how to establish a remote-first environment.

How to reduce employee turnover with a strong talent retention strategy

What we mean by remote-first

Remote-first treats remote work as the default. Whether staff are based at HQ or have never visited the office, their experience should be equivalent.

Culture building involves how work is carried out as much as what happens outside it. We’ve prepared a guide to help you establish a robust, supportive remote culture. What needs to change to go remote-first?

Shifting from office-based to remote-first brings challenges. Attempting to replicate an office remotely will only achieve partial success.

Remote staff miss casual interactions like desk drop-bys or corridor chats, which can leave them feeling disconnected and less effective. New remote managers often make avoidable errors that compound this issue:

Common remote leadership mistakes to avoid

• If you fail to communicate publicly and often, employees may feel detached from broader goals.

• Disrespecting downtime by contacting people off the clock risks burning them out.

• If leaders don’t model life-work balance, staff may feel compelled to work excessive hours.

• Micromanaging through frequent check-ins or time trackers erodes trust and drives away talent.

• Ineffective use of communication tools, such as private messages instead of public posts, can leave people excluded.

Such mistakes damage the employee experience and undermine retention initiatives.

Regular surveys and exit interviews help leadership detect and improve employee satisfaction, thereby reducing turnover.

The problem with micromanagement

Micromanagement is a frequent issue in remote work as some employers are uneasy granting autonomy during the workday.

Consequently, some organisations install tracking software on employees’ devices to monitor productivity. The effect is that employees feel mistrusted.

This breeds resentment and damages mutual respect. It also motivates key employees to do the minimum required.

So what should remote-first managers do differently?

Assess employees on outcomes and effectiveness, not hours logged.

Why remote-first management is so effective

Employees now prioritise flexibility above most other benefits. Remote’s Global Benefits Report finds workers value flexible workdays more than perks such as four-day weeks or retirement plans.

What does this mean for managers of remote teams?

Staff want workplaces that fit around their lives, not the reverse. They still want to contribute meaningfully but refuse to put life on hold.

Prioritise diversity, equity, and inclusion to keep employees engaged

Employees increasingly seek diverse, equitable, and inclusive employers. Remote-first organisations can accelerate stronger DEI practices.

How a diverse and inclusive culture improves retention

DEI is a powerful multiplier for retention. Embedding DEI in culture delivers:

How to build a diverse, equitable, and inclusive global workforce

Creating a diverse, equitable, and inclusive global workforce requires continuous commitment.

• Form a remote DEI committee to identify challenges and opportunities.

• Ask your team for candid feedback on DEI performance.

• Develop a formal DEI policy and update it regularly with input from the whole team.

• Integrate DEI into recruitment via inclusive hiring practices.

• Support the inclusion of underrepresented groups, including women, ethnic minorities, LGBTQ and neurodivergent employees

Want to become a globally inclusive employer? Watch our webinar: Building a globally inclusive recruitment strategy.

Five pillars to motivate and retain a high-performing remote team

When a team is motivated and productive, they are happier to log on. Leaders must maintain motivation and performance across global teams—from hiring to onboarding and beyond.

Smart recruitment

Start well by using value-led, remote-first recruitment practices.

• Communicate clearly and transparently

• Adapt interviews to candidate time zones

• Explain what a remote-first culture looks like for employees

These steps help you find candidates who share your values, fit the team, and know what to expect.

Seamless communication

Effective communication underpins the employee experience. To improve communications, review our communication guidelines for remote teams:

• Prevent notification burnout. Encourage staff to silence notifications when they need focused time.

• Make updates transparent and searchable. Record meetings and store documents publicly so all employees can access them.

• Establish communication norms. Make sure employees know best practices for each communication platform the company uses.

• Never sacrifice 1-1s. Schedule regular one-to-one meetings to hear employees and raise issues.

Comprehensive onboarding

Onboarding is a key lever for retaining remote staff.
Employee turnover can be as high as 50% in the first 18 months. To avoid this, an ideal remote onboarding programme includes:

• Engaging, self-serve resources

• Assigned onboarding buddies

• Introduction to company values and culture

• Information on company communication norms

• Expectations and targets for their first weeks

• Regular manager check-ins

Clear progression opportunities and communicated career paths are the most effective retention tool (63%) — even more than salary increases.

Smart meetings

Meetings can disrupt work. Excessive meetings reduce productivity and may frustrate staff.

Consider rethinking meeting practices for a remote-first organisation. Try these tips:

• Create an agenda and cancel the meeting if it can be handled async

• Set shorter time limits to keep meetings focused

• Rotate essential calls to accommodate different time zones

• Allow participants who are not contributing to leave meetings

• Schedule bonding time to keep work meetings shorter and less frequent

Run remote meetings with these tips and they will be productive forums rather than drains on time.

Supportive management

Without face-to-face contact, spotting stress and burnout is harder. Remote managers must watch for burnout signals and work to prevent it.

That might include:

• Keeping track of employee workloads

• Setting achievable deadlines

• Allocating time for non-work team activities

• Encouraging breaks and holiday bookings

• Model good life-work balance so employees feel able to take breaks

Support employees to prevent burnout; they will be more productive and more likely to remain with your company.

How flexible work practices help retain top global talent

Employees value flexibility, remote options, async hours, and autonomy. With a remote-first operating model you can offer these while improving productivity, customer responsiveness, and accountability.

Flexible working: a priority for remote workers

Flexible working—the freedom to choose where, how, and when to work—is a key consideration for many employees.

Remote’s Global Benefits Report found flexibility is vital for all groups, especially women and young workers. Women often juggle greater domestic responsibilities, making flexibility critical; younger workers are more mobile and value the freedom to shape their lives.

Our Global Benefits Report emphasised the importance of flexible conditions for remote and distributed teams.

This evidence should shape your recruitment and compensation approach.

Act proactively to stop top performers looking elsewhere. Discover what your high performers value and make targeted internal improvements to boost retention and show you value them.

Offering clearer promotion paths, performance-based pay increases, and more flexible conditions to retain top talent is usually less costly and time-consuming than replacing key people.

Flexible work is a top priority for 29% of employees

But flexibility is not limited to a minority — it benefits everyone.

More adaptive companies weather downturns better and seize opportunities faster. How can you offer flexibility? For many, the ability to work flexibly is decisive when choosing and staying in a role. Flexibility is a top consideration for 29% of employees overall, with higher rates among key groups: Contractors 38% (their top priority); Gen Z 35% (third priority); Women 32% (fourth priority).

Offer the work conditions that top talent seeks

Sixty-nine percent of employers believe they offer flexible working, yet only 47% of employees say they receive it.

A gap exists between the flexibility employers think they provide and what employees experience. Leaders may define flexibility differently or be disconnected from typical employee experiences. Employers must close this perception gap or risk higher turnover.

Hidden retention benefits of granting autonomy

Autonomy and trust are major drivers of workplace satisfaction. How do you embed autonomy and trust?

It requires transparency, strong communication, and meaningful support. Such a culture fosters psychological safety, enabling employees to perform at their best.

How to enhance your flexible working benefits

Flexible working should not come at the cost of team cohesion or career progression. If remote workers enjoy flexibility while others receive raises and promotions, remote staff may feel penalised.

By contrast, 45% of on-site employees rank telecommuting as a top perk (almost as important as private medical insurance and paid holidays). The implication for global employers is clear: when top talent is satisfied with flexible conditions, they generally feel positive about overall benefits.

The cost-saving advantage of flexible working

Beyond being a valued perk, flexible working can give you leverage when designing global compensation.

Remote employees often view telecommuting as a top-tier perk — nearly as important as core benefits like private medical insurance and paid holidays. When their need for remote work is met, they tend to be satisfied with the overall package.

Rhiannon Payne, Remote Work Advocate

For many remote workers, remote work is the most desired perk, so they judge other components of compensation less critically.

Only 36% of remote employees list benefits and perks among their top considerations when evaluating an offer. By comparison, 45% of on-site employees consider telecommuting a top perk (almost as important as private medical insurance and paid holidays).

The message for global employers is clear. If top talent is satisfied with flexible work conditions, they tend to be content with the wider benefits package.

Hear experts discuss managing a global benefits plan in Remote’s on-demand global benefits webinar.

Trust employees from day one. If you cannot, question why they were hired. Granting early trust and measuring results rather than hours creates an excellent environment for most people while allowing rapid identification of any who abuse that freedom.

Job van der Voort, CEO of Remote

How to build transparency and trust for remote and global teams

Remote teams perform best when everyone knows what’s happening. Transparency before, during, and after work creates cohesion.

Define clear project outlines and set expectations

If anyone wants project updates, public documentation should show the latest status. Performance data should be accessible too.

Let employees design their workdays

Some prefer late hours, others early starts, and some work in bursts. As long as everyone documents and communicates, workflows remain aligned.

Record, write, and inform

Keep all time zones informed by recording meetings and posting regular updates in public channels such as open Slack threads. Tag people frequently and foster a culture where notifications can be read at convenience rather than requiring constant screen presence.

Communicate in public forums

Make communication transparent, searchable, and accessible. Instead of DMing, post in a public channel or Notion page and tag the person—so anyone interested can follow the discussion.

Use face time for bonding

Reserve synchronous time for team connection—sharing problems, feedback, games, and catch-ups—while keeping core work in documentation to allow async collaboration.

Show respect

Respect time zones, preferred hours, and remote feedback. Stay open to iteration—responsive leaders empower everyone to deliver their best while keeping a healthy life-work balance.

Begin applying these retention tactics to keep high performers

Retaining remote talent in today’s market is challenging, but we hope this guide gives you actionable steps.

With this guide in hand, you now understand:

• Why remote staff retention matters

• How to calculate your staff retention rate

• What makes a remote employee want to remain with your company

• Practical tactics to improve retention for your remote workforce

The tips in this guide will help, but there is always more to learn. If you hire globally, you can contact Remote to simplify onboarding, payroll, and management of remote staff. We can also help you prepare competitive offers in new markets so your global compensation remains compliant and effective.