HR’s 2025 Recruiting for Retention Strategy

An HR retention strategy remains one of the toughest tasks for HR professionals in 2025, particularly against a backdrop of rising global political tension, ongoing war, and post-Covid economic recovery. Recent data indicates that the average staff turnover rate for UK workers has reached 35% while a further study of 300 HR decision-makers found that the primary concern for UK employers in 2024 was their retention strategy – even knocking recruitment and employee wellbeing off the top spots for the most pressing HR challenges.

So why are people so hard to keep within an organisation? How can HR prepare a killer recruitment strategy that encourages plenty of applications for any job openings, while making the culture one that people wish to be a part of?

For a start, some of these challenges can be industry-specific: Manufacturing records the highest employee tenure with an average of 5.3 years compared to IT and hospitality which face tougher challenges when it comes to retaining staff for extended periods. This is further compounded by the hike in remote working which has undoubtedly influenced retention dynamics. Currently, two in five staff work remotely at least one day a week – and while this often enhances job satisfaction, it is having a knock-on effect on sectors such as education. Here, flexible working is harder to accommodate, creating a flux of people seeking to leave employment for a healthier work/life balance.

With these factors influencing employees’ decision to stay or leave an organisation, People teams have a tough remit when it comes to creating a strategy that safeguards talent, builds skills, and nurtures future leaders while preserving the culture. Here are the elements that should be considered when formulating a recruitment and retention plan.

Talking ‘bout my generation

There have always been generational differences in workplaces, but the current labour market has up to four generations working alongside one another. Now, more than ever, people professionals tasked with creating any recruitment and retention strategy should have a good understanding of the age dynamics in their workforce.

According to 2022 data from the Office for National Statistics, the distribution of employed individuals aged 16 to 65 comprises 3.71 million Baby Boomers, 11.4 million Gen X, 12.2 million Millennials and 4.3 million Generation Z workers. Notably, Generation Z (born between 1997 and 2012) is emerging as a significant segment. Research indicates that Gen Z employees are 32% more likely to leave their employers compared to Millennials, twice as likely as Gen X, and nearly three times more likely than Baby Boomers. The challenge for HR professionals is to tailor retention strategies so that they resonate with Gen Z’s unique preferences.

Managing expectations

Research by the Chartered Institute of Personnel and Development (CIPD) indicates that 30% of new hires leave within the first six months due to unmet expectations. Managing this from the recruitment process through to onboarding and into probation periods is critical.

Transparency is paramount and having a clear internal mobility pathway as well as a defined professional development roadmap will help prospective candidates know what their career journey might look like. Recruiters need to clearly articulate job roles, expectations, and growth opportunities during the recruitment process to set realistic expectations for applicants.

Leverage historical data

With the abundance of HR tech at our fingertips, being able to conduct a thorough analysis of historical employee data is a no-brainer. Not only can it offer invaluable insights into past recruitment and retention outcomes, but also pinpoints trends related to turnover rates, tenure durations, and exit interview feedback will arm HR professionals with the data they need to shape any retention initiatives. According to a recent report by Deloitte, organisations that leverage advanced analytics in their HR processes see a 25% reduction in employee turnover.

People analytics solutions, such as the xcd platform’s Performance and Analytics model can also help determine the areas that need improvement and can use real-time data such as sickness and absenteeism rates, performance metrics and engagement levels to derive insights and actionable goals. All of this can help refine the recruitment process, so it marries up with any long-term retention strategy.

Emphasise cultural fit

This might be a more recent strategy for HR professionals but ensuring that candidates align with the organisation’s values and culture can lead to increased job satisfaction and longevity. Being clear on what makes a good team member, what is expected of them as an employee, and what they can expect from you as an employer, will help weed out candidates who are not a good fit for the organisation. A report by Glassdoor found that 77% of employees consider a company’s culture before applying for a job, and those who fit well with the culture are more likely to stay long-term.

The culture of the organisation also extends to elements such as competitive compensation and employee benefits offerings. Ensuring the organisation aligns with market standards is the first port of call in order to attract the right calibre of applicants. In addition, having a strong policy for Diversity, Equity and Inclusion will help attract prospective employees while creating a psychologically safe workplace for the current workforce.

Upskilling and succession planning

Investing in employee development is a cornerstone of retention. Providing opportunities for upskilling not only enhances individual capabilities but also demonstrates an organisation’s commitment to career progression. Succession planning further solidifies this commitment by preparing employees for future leadership roles and defining the skills needed to achieve the organisation’s business objectives resulting in fewer talent gaps.

Recruiting for retention is a multifaceted process that requires a deep understanding of generational needs, and the ability to interpret existing data to forecast potential recruitment needs. If HR accommodates these elements within its strategy for recruitment and retention, it will create a vibrant workplace that attracts talent, preserves skills, builds belonging and creates an environment where people thrive.

A collaborative approach between recruitment and HR is often crucial in strategic hiring and retention efforts. Integrating your HR and Recruitment solutions can support communications and processes that flow between the two departments. Read our free download to learn about Hireserve ATS’ integration with the xcd people platform.