Employee retention strategies to end 2025 strong and start 2026 connected

As 2025 comes to a close, many of your employees may be reflecting on the year; considering questions like, “Am I valued here?” and “Have I grown?”. How your people feel now—seen, appreciated, and connected—will directly influence whether they return reenergised for 2026 or start the year disengaged, scrolling LinkedIn, and looking for new opportunities.

This is where effective retention strategies come into play. Recognition, gratitude, and reflection aren’t just feel-good activities, they build deep emotional connections, reinforce belonging, and energise teams for the year ahead.

Why end-of-year connection matters

Retention isn’t simply about keeping people on the payroll. It’s about ensuring employees feel motivated, productive, and proud to work with you. Research shows:

• Average turnover rates in Australian organisations sit at 15%, with 38% reporting recruitment challenges.

• Replacing a single employee costs on average $33,000, factoring in recruitment, learning and development, and knowledge loss.

Even small improvements in retention can have a big impact. Just a 1% reduction in turnover can save substantial costs and help preserve organisational knowledge.

Want to do a retention reset to set yourself up for success in 2026? Watch our on-demand webinar now!

3 pillars to strengthen retention

Recognition

Recognition is the top driver of productivity in Australia. Celebrating effort—not just outcomes—reinforces connection and encourages discretionary effort.

Simple, frequent gestures, like peer-to-peer recognition, manager-led spotlights, and highlighting unsung heroes, can have a huge impact.

Programs such as “12 days of recognition” or milestone recognition campaigns allow employees to feel seen for what matters to them, from personal achievements to professional milestones.

Wellbeing

Supporting wellbeing isn’t optional; it’s essential. Employees thrive when they feel psychologically safe, empowered to be vulnerable, and supported both mentally and physically.

Leaders play a critical role in modelling openness, encouraging conversations about workload and stress, and enabling their teams to recharge over the festive season.

Providing flexible, meaningful wellbeing initiatives, whether through mental health resources, leave policies, or wellness programs, supports engagement and strengthens retention.

Belonging

Belonging is more than inclusion; it’s about connecting employees to purpose and helping them feel part of something bigger. Simple actions, like asking employees what they’re grateful for, spotlighting contributions, and sharing authentic stories, reinforce connection.

Centralised communication platforms and mobile-first updates ensure that everyone feels informed, recognised, and included.

Financial wellbeing as a retention strategy

Total rewards aren’t just about pay, they’re about perceived value. Many employees underestimate the full benefits and support offered by their organisations.

Highlighting the full picture—salary, bonuses, benefits, recognition, and wellness support—can strengthen loyalty and improve retention.According to our research, nearly 60% of employees want their employers to prioritise financial wellbeing in 2025, which is particularly important during the festive season when cost pressures rise.

Flexible rewards, accessible benefits, and clear communication around total rewards help employees feel valued while mitigating end-of-year stress.

Leadership and recognition: Multipliers for retention

Leaders are critical retention multipliers. Recognition from managers cascades through teams, with every recognised employee three times more likely to recognise someone else.

It's essential that we equip our leaders with tools, templates, and conversation guides to ensure recognition is easy, consistent, and authentic.

Even low-cost recognition strategies—like handwritten notes, free eCards, or spotlighting small wins in a shout out—can be highly effective.

Frequency matters as much as scale, so ensuring you build a culture of continuous recognition will be critical.   

Check out some examples of our Reward Gateway | Edenred eCards on the right, they give our people a range of options to recognise each other so it's easy and quick, reducing the effort required and boosting frequency.

Ending the year strong, starting 2026 energised

To successfully carry momentum into 2026, focus on:

• Celebrating employees’ efforts and achievements

• Prioritising wellbeing and safe, open conversations

• Communicating purpose and impact authentically

• Equipping leaders with recognition and engagement tools

• Highlighting total rewards and creating a culture of appreciation

By integrating these retention strategies into your year-end employee experience, you ensure employees feel appreciated, energised, and connected; ready to enter the new year with renewed commitment and enthusiasm.

Want to learn more about boosting retention and connection in 2026? Watch our on-demand webinar: Retention reset: Ending the year with connection. 

Ready to create a platform your people will love? Whether you’re starting fresh or levelling up an existing program, Reward Gateway | Edenred makes it easy to connect your people to the things that matter, all in one place.