15 RETENTION STRATEGIES EVERY PEO SHOULD USE TODAY

The competition for top talent is only getting stronger. For PEOs, high turnover can affect not only internal operations but also the quality and consistency of client services. That’s why retention is no longer just an HR function. It is a core business strategy.

The good news is that people tend to stay where they feel supported, challenged, and set up to succeed. As a PEO leader, you are in a position to shape that experience both within your organization and across the client teams you support. The key is to treat retention like a long-term investment, not something you scramble to fix when someone’s already walking out the door.

Here are 15 people-first strategies that can help you keep great talent, build stronger teams, and bring even more value to the organizations you support.

1. SUPPORT YOUR MANAGERS WITH THE TOOLS THEY NEED

Managers have more influence on engagement and retention than any other role in the organization. In fact, supportive management can more than double employee retention, according to Bonusly’s Value of an Engaged Workforce report.

Many managers are promoted without the training or structure to lead well. Set them up for success with targeted training, peer support, and consistent feedback. When managers are equipped to lead with clarity and confidence, teams are more stable, turnover drops, and client-facing service improves.

2. MAKE CONTINUOUS LEARNING THE DEFAULT, NOT THE PERK

Growth is a top priority for today’s workforce. Whether it’s through certifications, mentorship, or access to skill-based learning platforms, offering growth opportunities shows you’re invested in their future. Learning drives engagement and helps employees envision a future with your organization.

3. STRENGTHEN YOUR ONBOARDING PROCESS

Onboarding sets the tone. If it’s just paperwork and policies, you’re missing a huge opportunity. What really matters is helping new hires feel connected early — to the team, the culture, and the bigger picture. When people feel welcomed early on, they’re more likely to stay and contribute.

4. BUILD FLEXIBILITY INTO YOUR MODEL

Flexibility is now an expectation, not a perk. That doesn’t mean compromising performance. Instead, give employees ownership over how they achieve results. Options like hybrid work or adjusted hours reduce burnout and support accountability.

5. PRIORITIZE MENTAL AND PHYSICAL WELLBEING

Wellbeing is more than an EAP. It is a workplace culture where rest, recovery, and mental health are part of how work gets done. When leaders prioritize wellbeing through both their messaging and actions, it gives employees permission to do the same.

6. HELP EMPLOYEES FIND PURPOSE IN THEIR WORK

People want to know their work matters. Connect roles and responsibilities to the broader mission. Highlight the impact your team has on client outcomes. A strong sense of purpose builds commitment, especially during times of change. It turns day-to-day tasks into something greater and supports long-term retention.

7. OFFER INTERNAL CAREER GROWTH PATHWAYS

Retention is closely tied to opportunity. Create visible, structured career paths and offer tools to help employees move forward. Whether it’s lateral moves, leadership training, or special projects, growth doesn’t have to mean a promotion—but it does have to be real.

8. RECOGNIZE AND REWARD CONTRIBUTIONS OFTEN

Appreciation fuels loyalty. A thoughtful thank-you, a quick mention in a team meeting, or celebrating milestones can reinforce that someone’s effort matters. Make recognition part of the culture so employees at every level feel valued and motivated.

9. MAKE CAREER DEVELOPMENT A SHARED EFFORT

Career growth should be collaborative. Use development plans and regular check-ins to help employees define their goals and take ownership of their path. When people feel both supported and empowered to move forward, they’re more likely to stay, grow, and contribute at a higher level.

10. LISTEN WITH INTENTION

Feedback only matters when it leads to action. Use surveys, roundtables, or check-ins to understand what’s working and what’s not. Then close the loop. Share what you heard and what you’re doing about it.

11. ALIGN BENEFITS WITH LIFE STAGES

What matters to a 25-year-old may not matter to someone caring for aging parents. Tailor benefits like caregiver support or financial tools to match employee needs across life stages. It signals that your organization is thinking long-term about retention.

12. USE STAY INTERVIEWS TO BUILD TRUST

Stay interviews help surface issues early and lead to simple but impactful changes. Done well, they uncover small, actionable changes that can make a big difference.

13. BUILD A CULTURE OF BELONGING

Diversity efforts are a start, but lasting impact comes from building workplaces where people feel respected and supported in doing their best work. That means strong leadership, fair opportunities to grow, and clear standards that apply to everyone. When employees feel like they’re part of the team and their contributions matter, they’re more likely to stay, perform, and help the business succeed.

14. MAKE COMPENSATION GROWTH PATHS TRANSPARENT

When compensation expectations aren’t clear, it creates uncertainty and disengagement. High-performing employees want to understand how to grow their pay based on results, skills, and time in role. By making pay structures transparent and tied to measurable criteria, you reduce confusion, build trust, and create a more motivated workforce — both inside your organization and across the clients you support.

15. OFFER SKILL-STACKING SABBATICALS

While traditional sabbaticals are still uncommon, many organizations are finding value in short-term, development-focused leave. These learning-based breaks allow employees to recharge while building new skills that directly benefit the business. When structured well, they help retain top performers, strengthen engagement, and bring fresh capabilities back to the team.

HERE’S WHAT THIS MEANS FOR YOUR PEO

Retention isn’t just about holding on to great people. It’s about creating a stronger, more resilient business. When your team stays, service improves. When your clients retain talent, your value increases. When you model retention well, your credibility grows.

If you’re not already using these strategies inside your own team, start there. Then think about how you can bring them into the way you support clients. That kind of alignment sets you apart in a crowded space.

At the end of the day, it’s simple. When you invest in your people, they stick around and give their best. Retention starts with trust, builds with growth, and lasts when people truly feel like they belong.

Now is the time to ask: “Are we doing everything we can to support our people and help our clients do the same?”