Maximizing employee retention (beyond salary increases)

Judith Lamb CloudPay CHRO round 1536x1536 1Judith Lamb
Chief Human Resources Officer
Jan 16, 2025
6 min read

Key takeaways

Frame 1438Recent years have proven pay rises aren’t the only way of ensuring employee satisfaction and talent retention
Frame 1569Total rewards and benefits have become an established method of motivating employees
Frame 1438 1Flexibility and personalization can be driven through integrated HR and payroll technology
BLOG How to retain talent banner

Maximizing employee retention beyond salary increases

Judith Lamb CloudPay CHRO round 1536x1536 1Judith Lamb – Chief Human Resources Officer
BLOG How to retain talent banner
Jan 16, 2025
6 min read

Key takeaways

Frame 1438Recent years have proven pay rises aren’t the only way of ensuring employee satisfaction and talent retention
Frame 1569Total rewards and benefits have become an established method of motivating employees
Frame 1438 1Flexibility and personalization can be driven through integrated HR and payroll technology

In today’s competitive labor market, organizations will be well aware that talent retention requires more than just salary increases. While compensation remains an important factor, and wages are officially rising above inflation now in both the US and UK, a holistic approach to employee experience is often just as critical to attract and retain top talent.

The COVID-19 pandemic and its aftermath have had major impacts on employee retention, and expectations around company culture and employee experience. Now, even moreso than previously, employees prioritize factors such as flexibility, career development, and a strong sense of purpose.

As a result, organizations have been going beyond traditional approaches to satisfy employee experience and have got creative in driving retention and preventing employee turnover in other ways. Here, we explore the incentives and methods most likely to resonate in 2025 and beyond.


How to support employee retention

For at least a decade, HR, finance and payroll leaders have generally been adapting their mindset. There has been a move away from simply increasing pay, towards developing more well-rounded and appealing benefits packages that meet the changing needs of the workforce. 

Health and wellbeing has a major part to play in this; WellHub research has found that 93% of employees regard their health as equally important as their earnings. And while this type of benefit has been long established through the likes of health insurance plans, or 401(k) personal pensions in the US, the bar of employee expectation in this area has risen substantially.

Nowadays, employees are looking for benefits packages and perks that are flexible, personalized, and that consider their requirements and preferences in areas such as professional development, work-life balance, work environments and mental wellbeing. Now, more than ever, this involves understanding what individual employees are looking for, and crafting benefits packages and options that give them maximum choice and control.


Key employee benefits trends to help with employee retention in 2025

The types of benefits that can make a real difference to employee engagement and workplace culture can be grouped into these four categories:

1. Holistic wellbeing

Employees’ wellness at work is key for satisfaction, motivation and productivity. This can be supported through Employee Assistance Programs (such as those embedded in the CloudPay NOW earned wage access app) that connect employees to mental health support to combat things like stress and burnout; financial education resources that help employees make more informed decisions around the money they earn; and ethical and sustainable benefit options like volunteer programs and eco-friendly transport schemes that allow employees to align their career development to their personal and social values.

2. Flexible work

Employees no longer just want to fit their work schedule around their personal lives – they expect to be able to do so. This means they want to choose from hybrid and remote work models that allow them (within practical reason) to work where and when they want; and flexible scheduling such as flexitime, compressed hours and four-day weeks. Additionally, flexible Paid Time Off policies managed through integrated technology can accommodate holiday, parental leave and childcare needs, and refocus PTO on results rather than presenteeism.

3. Financial wellness

Both of the points above converge in the form of financial wellness support that takes away the stress that can affect employees inside and outside work. This can include emergency savings programs; access to professional financial advice; and support with paying off student debt. But financial wellness can also be proactive rather than reactive, in the form of Earned Wage Access tools like the CloudPay NOW mobile app that put employees in autonomous control of when they’re paid and how their earnings are managed.

4. Technological support

Integrated employee recognition and benefits administration platforms can help employees easily choose the right benefits for them. CloudPay NOW is just one example of how technology can make benefits more personalized and intuitive for future and current employees. It also simplifies and streamlines management for HR, payroll, and finance teams. Furthermore, artificial intelligence can deliver many support functions 24/7 in the form of chatbots and virtual assistants.


In summary: a constant evolution

In order to meet key demands around employee retention, company culture and employee experience in 2025 and beyond, HR and payroll teams will need to continue evolving.

Company-wide benefits offerings and technology should be continually reviewed against employee feedback so that benefits can be aligned with employee satisfaction trends. This will give organizations the best chance of holding onto their best and brightest, even during periods when they can’t boost employees’ bottom lines.



Find out more on how CloudPay NOW’s Earned Wage Access feature can bolster your employee retention strategies through greater flexibility and control by contacting our team today.

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