8 Secret Sauce Strategies to Retain Employees

<2% Turnover: My 8 Secret Sauce Strategies for Employee Loyalty

This Thanksgiving weekend, my oldest daughter, Elissa, asked me out of the blue: “Dad, how did you manage to keep employee turnover below 2% for 25 years?”

It wasn’t the first time I’d heard that question. Back in 2005, while rewriting my resume for only the second time in my life, I sought feedback from my former VP of HR. She handed it back heavily marked up, but one comment stood out:

“Haresh, you missed your strongest attribute.”

When I asked what she meant, she replied: “We’re scratching our heads at HQ in Vancouver, BC, wondering how you’ve managed under 2% turnover in Silicon Valley through the dot-com boom and bust.”

I hadn’t really thought about it until then. People just stayed, or so I assumed. Her comment made me reflect deeply on what I was doing differently to achieve this anomaly.

Over the years, my notes became the foundation of leadership training sessions: how to attract, motivate, and retain top talent through ups and downs. Since my daughter brought it up again, here’s my “secret sauce” for anyone who might find it valuable:

1. Focus on Job Tenure

Resumes tell a story—and tenure is my first filter. If I see too many one- or two-year stints, it’s a red flag.

For five years of experience, I expect one solid three-year stint. For 15 years, I look for one or two roles lasting 5–7 years. For college grads, I even ask about their family’s job histories to gauge values and loyalty. Past behavior predicts future behavior.

2. Challenge Them Regularly

Push people beyond their comfort zones. Assign tough projects that stretch their skills, and shift their roles every 2–3 years. If employees feel like they’re constantly evolving, it’s like working for a new company without changing their desk.

3. Pay Competitively (When Possible)

When finances allow, pay top-of-market. During lean times, I’m transparent: “Here’s where we are. As soon as we can, we’ll make it right.” Employees stick around when they know you’re honest—and that you care.

4. Be Brutally Honest

Employees are adults; treat them like it.

When our funding once hung by a thread, I told the team, “If you’re considering leaving, now might be the time. But if you stay, I need your full passion and energy.” On Monday, one person resigned. The rest rallied—and their renewed drive helped us succeed. Transparency builds trust, especially in tough times.

5. Hire for Culture, Not Just Skills

Skills are teachable; cultural fit isn’t.

In interviews, I test for collaboration and the ability to work through differences. Can we agree to disagree and still move forward? Life’s too short to work with people you don’t respect—or enjoy.

6. Measure Passion and Enthusiasm

Why do they want the job? What drives them?

No perks or paychecks can replace genuine enthusiasm. Passion is the fuel that powers long-term commitment.

7. Immediate Pay Adjustments at Promotions

When I was an up-and-coming manager, my boss resigned. That same day, the company president promoted me, handed me a raise, and offered new stock options. It motivated me to give my best.

Too many companies say, “Work harder now, and we’ll reward you later.” Wrong. Recognize contributions immediately—loyalty and morale will soar.

8. Weed Out Underperformers Quickly

My sub-2% turnover rate applies to the top 70% of employees. The bottom 30%? High turnover.

Underperformers drag down the team—and demotivate your stars. Remove them swiftly and reallocate savings to reward top performers with off-cycle raises or surprise bonuses. Keeping the team lean shows everyone you value excellence.

What About You?

I’ve shared my playbook—now it’s your turn.

? What’s your #1 secret for retaining top talent? ? Have you implemented an unconventional strategy that worked? ? What do you think about my 8 principles?

Drop your thoughts in the comments! Whether you agree, disagree, or have insights to add, I’m here to learn from your experiences.

Let’s start the conversation.