BLOG
Building a Loyal and Engaged Workforce

July 2025 | PerfectGift Experts | 5 Minute read

What’s costing your business more than you realize? Employee turnover.

Every manager dreads losing a talented employee—primarily because it’s not just an empty desk or a goodbye coffee break. Losing employees costs businesses time, money, and momentum. According to Gallup, the cost to replace an employee can be up to twice their annual salary when you factor in recruitment, onboarding, lost productivity, and morale hits.

The reality? Building a loyal, engaged workforce isn’t just nice to have—it’s business-critical. Here’s how you can address the challenges of retention with meaningful, proven strategies to create an environment where employees don’t just stay—they thrive.


Why Retention Matters

Before we get to the solutions, the challenges are worth breaking down. Every time an employee walks away, the impact ripples through your organization:

  • Recruitment and Onboarding Costs: Writing job descriptions, posting ads, interviewing candidates, onboarding new hires—it’s a resource-heavy process.
  • Lost Productivity: On average, new employees take 3-6 months to become fully productive, creating operational disruptions.
  • Knowledge Drain: Departing employees take priceless institutional knowledge and skills with them.
  • Company Morale: High turnover impacts the confidence and motivation of remaining employees, leading to burnout.

If these sound familiar, you’re not alone. But here’s the good news—companies are solving these problems by being proactive.

3 Core Strategies to Build Trust, Recognition, and Engagement

1. Offer Flexibility That Matters

The pandemic shifted work-life boundaries forever, and employees now value flexible schedules and remote/hybrid options more than pay raises in many cases. Data from LinkedIn shows that job postings mentioning “remote work” attract up to two times the applications as those without.

Practical Actions:

  • Enact hybrid or remote work policies where possible.
  • Offer flexibility in shift hours, helping employees balance personal needs with professional objectives.
  • Invest in tools that make remote work seamless, such as video conferencing or project collaboration software.

2. Build a Recognition-Rich Culture

One of the biggest culprits behind employee dissatisfaction is a lack of recognition. People want their contributions noticed, appreciated, and celebrated. A report from O.C. Tanner revealed that recognition programs improve employee engagement by 55% and reduce turnover by 31%.

Example in Action—Heineken:

The company revamped its rewards program, giving employees the power to recognize their peers’ contributions. This simple shift increased peer-to-peer recognition by 50%, fostering inclusivity and mutual admiration across teams.

Practical Actions:

  • Introduce peer-to-peer recognition tools like bonus points or shout-outs for excellent work.
  • Implement personalized appreciation programs—think handwritten notes for milestones or monthly “Top Contributor” awards.
  • Regularly organize team-wide recognition events to celebrate achievements big and small.

3. Invest in Meaningful Development Plans

Employees don’t just want to clock in and out—they want to grow. A study by Glint reports that 93% of employees would stay longer at a company if it better invested in their careers.

Example in Action—IKEA:

Through mentorship programs and "buddy systems," IKEA created structured onboarding support for new employees, decreasing staff turnover from 41% to 27% within two years.

Practical Actions:

  • Offer targeted mentorship programs to help junior employees build their skills.
  • Create regular upskilling sessions or reimburse employees for taking relevant courses.
  • Provide clear career progression paths to give employees a picture of where they can go within your organization.

Building the Future of Work Starts Now

Putting employees first is no longer just a feel-good strategy—it’s the foundation of competitive advantage in an increasingly connected world. Investing in retention delivers measurable, bottom-line impact through better morale, higher productivity, and reduced recruitment costs.

Want to take the first step toward building an engaged and loyal workforce? Contact us today to learn how PerfectGift can help your team thrive by implementing innovative employee recognition solutions. By treating your workforce like valuable contributors—not just headcounts—you build a culture of loyalty, trust, and shared success.

After all, engaged employees don’t just contribute to your business—they lead it forward.