What is the best way to figure out how to retain an employee?

Ask them how they want to be retained. Give the person the floor to say what they expect from their compensation package, then build the package around their answer and the company's needs. Starting with a question turns compensation into a genuine conversation, and you end up with a package the employee remembers and appreciates.

Are company-wide compensation packages still effective?

They are looking outdated. As business evolves, companies are moving away from traditional department-wide or company-wide packages and exploring unique compensation tailored to each employee. Tailoring comes with its own difficulties, but it lets the package reflect what each person values.

Why does employee retention benefit the employee, not just the company?

Because it is in everyone's interest to have a reason to keep a good job for an extended time; tenure works like compounding rates of return. As Simon Sinek put it, financially invested people want a return, while emotionally invested people want to contribute, and retention built on genuine investment serves both sides.

When should retention come up with a new hire?

Before they accept the offer. Compensation is a staple of the interview process, and people want to know the company appreciates them before they start. How you bring up the package changes the narrative and attracts people who want the job for the job.

Ask Your Employees to Advise You on Retention · Ambassador Group

About the author

TJ Kastning

Founder & Managing Partner

TJ founded Ambassador Group after years recruiting for construction organizations, watching misaligned leadership decisions cost projects, margin, and morale. He believes hiring is a deep leadership discipline, not just a transactional function. It shapes culture, capacity, and long-term outcomes. His work with clients focuses on clarifying expectations, surfacing assumptions, and helping leaders think more clearly about the environments they are creating. TJ is involved in every search as guide and thought partner.

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“When people are financially invested, they want a return. When people are emotionally invested, they want to contribute.”

(Simon Sinek)

Employee retention rates are not only in the best interest of the company but the employees as well. It is in everyone’s best interest to have a reason to keep a good job for an extended time.

i.e., compounding rates of return.

As business evolves and progresses, it seems the traditional, department-wide, or company-wide compensation packages are outdated. Now, companies are exploring the benefits of unique compensation packages tailored to each employee.

Of course, this comes with its own set of difficulties, but here’s how it’s done:

Ask How

Compensation is a staple of the interview process, at least for the employee. Everyone wants to know that their company appreciates them before they even accept the offer and begin working.

It’s how you bring up the package that can change the narrative and attract more employees that want the job for the job.

Start by asking the person how they want to be retained. Give them the floor to tell you what they expect from their compensation package.

Beginning with a question forces the projected employee to switch gears a bit. Now, you two are having a genuine conversation, one where you strategically develop a compensation package tailored to their wants and needs as well as the company.

In turn, you get to know your employee a little more, and you’ve also created a package they are likely to remember and appreciate.

On how NOT to do it.

Questions, answered

The short version.

What is the best way to figure out how to retain an employee?: Ask them how they want to be retained. Give the person the floor to say what they expect from their compensation package, then build the package around their answer and the company's needs. Starting with a question turns compensation into a genuine conversation, and you end up with a package the employee remembers and appreciates.
Are company-wide compensation packages still effective?: They are looking outdated. As business evolves, companies are moving away from traditional department-wide or company-wide packages and exploring unique compensation tailored to each employee. Tailoring comes with its own difficulties, but it lets the package reflect what each person values.
Why does employee retention benefit the employee, not just the company?: Because it is in everyone's interest to have a reason to keep a good job for an extended time; tenure works like compounding rates of return. As Simon Sinek put it, financially invested people want a return, while emotionally invested people want to contribute, and retention built on genuine investment serves both sides.
When should retention come up with a new hire?: Before they accept the offer. Compensation is a staple of the interview process, and people want to know the company appreciates them before they start. How you bring up the package changes the narrative and attracts people who want the job for the job.