The five fundamentals of retention
Retention, not recruitment, will define which organisations win the talent race over the next few years, says Julie Statevski, group HR, people and culture general manager at SKG Services.
In discussion with HRD, Statevski argues that while many organisations pour time and money into sourcing new hires, they are overlooking the far greater strategic advantage of keeping the people they already have.
“Retention is a competitive advantage than recruitment because it protects organisational knowledge, stability, and productivity in ways recruitment cannot replicate,” she said.
“While recruitment focuses on filling vacancies, retention focuses on keeping capability, culture, and performance embedded within the business.”
The hidden cost of turnover
According to Statevski, replacing an employee is expensive well beyond the recruiter’s invoice.
There are the obvious costs – recruitment fees, onboarding and training – but the real damage often shows up elsewhere: disrupted operations, lower team morale and a hit to client relationships and continuity.
“Retained employees understand systems, customers, and expectations, and they contribute at a higher level more quickly and consistently,” she said.
In contrast, high turnover can stall momentum, weaken culture and erode the trust and confidence of both teams and customers.
Loyalty starts with leadership, not perks
For organisations serious about retention, Statevski says loyalty is not built on quick-fix perks, but on how people are led and treated day to day.
“Employers build loyalty when employees feel seen, supported, and fairly treated,” she explained. “This starts with leadership, communication, follow-through on commitments, and transparency.”
Clear expectations and trust in leadership are crucial, particularly in challenging periods. When employees believe their leaders will act fairly and communicate honestly, they are far more likely to stay.
Visibility also matters: “Employees like to see managers on-site to feel acknowledged, appreciated and valued,” said Statevski.
Regular presence, conversations and recognition from managers do more for loyalty than any glossy engagement campaign.
Where HR is getting retention wrong
Statevski believes one of the biggest missteps HR teams make is treating retention as a problem to solve after it’s already too late.
“A common mistake is treating retention as a reactive problem rather than a strategic responsibility,” she noted.
“Too often, action only occurs once resignation letters appear, rather than addressing the underlying drivers earlier.”
Another trap is relying on surface-level solutions: an annual engagement survey, a one-off initiative, an isolated ‘wellbeing week’ – rather than tackling foundational issues.
Engagement surveys and one-off initiatives won’t fix core problems like leadership capability, workload sustainability or role clarity.
Crucially, Statevski stressed that retention cannot sit on HR’s shoulders alone.
“Retention is not an HR-only issue it requires alignment with operational leaders, managers, and executives. Without accountability at the leadership level, even well-designed retention initiatives will fail to deliver meaningful outcomes.”
Five fundamentals of retention
At SKG Services, Statevski says retention is built on a clear set of fundamentals that any organisation can adapt:
- Strong leadership at all levels: Managers play a critical role in day-to-day employee experience. As a business Investing in leadership capability is one of the most effective retention strategies and ensuring upskilling and training takes place.
- Clarity and fairness: Clear roles, expectations, and consistent application of policies build trust and reduce disengagement. Ensuring job descriptions and regular meetings with direct managers.
- Career development and progression: Employees are more likely to stay when they can see a future and continued training, evolving as the business grows.
- Recognition and respect: Regular, genuine recognition reinforces value and contribution. Monthly recognition awards are issued to our employees, where we issue vouchers and certificates, this is very much appreciated.
- Wellbeing and flexibility: Sustainable workloads and flexibility, where possible, are no longer “nice to have”; they are essential.
Retention as a strategic choice
For Statevski, the goal is not to keep every employee at any cost. Rather, it is to build an environment where “good people want to stay”.
“Retention is not about keeping people at all costs, it’s about creating an environment where good people want to stay,” she explained.
By embedding strong leadership, clarity, development, recognition and wellbeing into the way the business operates, retention becomes a natural outcome rather than a constant firefight.
In an increasingly competitive labour market, Statevski’s message is clear: recruitment can fill seats, but only retention builds the kind of capability, culture and continuity that truly sets organisations apart.
