An effective HR retention strategy is becoming increasingly important. Recent findings reveal a critical warning: Globally, 35% of the workforce, and 47% of young professionals aged 18 to 27, are considering changing jobs within the next six months.This signals a looming talent crisis, especially among Gen Z employees who are vital for the future of work. In this climate, a well-structured HR retention strategy helps reduce churn, improve employee satisfaction, and future-proof the workforce.
5 proven HR strategies to improve your retention rates
Retaining top talent is more challenging than ever. To stay ahead, businesses must go beyond paychecks and address what truly matters to employees. Here are 5 proven HR strategies to boost your retention rates.
1. Offer competitive packages and ensure job stability
In Vietnam, financial stability remains the bedrock of any effective HR retention strategy. A joint survey by Jobs_that_makesense Asia and Manpower revealed that 40% of Vietnamese respondents prioritize salary and job stability when exploring new employment opportunities. Amid rising living costs, employees prioritize salary and job security not for luxury, but to ensure comfort and support for their families. To retain top talent, companies must move beyond basic compensation and focus on structured financial growth.
Provide long-term financial incentives (e.g., performance bonuses, retention bonuses)
Outline transparent salary progression and promotion frameworks
Reinforce job stability through contract clarity and future business visibility
2. Invest in career growth and learning opportunities
Career advancement and continuous learning are highly valued by Vietnamese professionals. According to A Vietnam Report, one-third of employees place significant emphasis on developing new skills. A comprehensive HR retention strategy must integrate learning paths that enhance both technical capabilities and leadership potential.
Develop structured learning and development programs
Offer on-the-job training, mentoring, and industry certifications
Create visible promotion tracks aligned with business goals
3. Support work-life balance and flexible working models
Work-life balance is no longer a luxury,it’s a standard expectation, especially post-pandemic. The What Vietnamese Workers Want Report shows that 42% of employees in Vietnam prefer hybrid or remote work models. Moreover, 56% of employers recognize that work-life balance is their top lever for improving retention.To remain competitive, companies must prioritize workplace flexibility as a central element of their HR retention strategy.
Introduce hybrid and remote work options
Provide mental health resources and flexible scheduling
Offer family-focused benefits such as childcare assistance
4. Align with purpose and embrace ESG values
Vietnamese employees increasingly seek meaning in their careers. An astounding 99% of workers report a desire to find purpose in their jobs, while 85% assess a company’s social responsibility before joining. A future-ready HR retention strategy should integrate environmental, social, and governance (ESG) values into the company’s mission and employee experience.
Communicate your ESG commitments clearly and often
Educate employees at all levels about ESG principles and their relevance to daily work
Engage employees in volunteer and sustainability projects
Report on impact and transparency in corporate communications
5. Build a DEIB workplace (Diversity, Equity, Inclusion, Belonging)
Fostering a culture of belonging is now seen as a competitive advantage. Manpower’s survey shows that 87% of Vietnamese employees expect their employers to implement DEI initiatives. An inclusive and equitable environment helps employees feel valued and safe, contributing directly to stronger engagement and retention. A forward-thinking HR retention strategy should treat DEIB as both a moral imperative and a business necessity.
Conduct regular DEIB training and awareness programs
Launch internal initiatives such as employee resource groups
Track and measure inclusivity across hiring, promotion, and engagement
The Benefits of a strong HR retention strategy
Implementing a well-structured HR retention strategy delivers measurable advantages that go far beyond simply reducing employee turnover. It helps companies enhance performance, protect resources, and build a resilient, future-ready workforce.
1. Lower turnover costs
Employee turnover is expensive. Recruitment fees, onboarding time, training resources, and lost productivity all accumulate into substantial hidden costs. By retaining talent, companies avoid the financial drain of constant rehiring and preserve their internal knowledge and momentum.
2. Greater workforce stability and productivity
Experienced employees are more efficient, confident, and aligned with business objectives. A strong HR retention strategy ensures continuity in operations, strengthens team dynamics, and boosts overall productivity - especially in fast-paced or highly regulated sectors.
3. Stronger employer branding (EVP)
Companies with high retention rates are perceived as desirable employers. When employees stay, grow, and advocate for the workplace, it enhances the company’s reputation in the job market. This positive image attracts better candidates and improves offer acceptance rates.
4. Increased employee engagement
Retention and engagement go hand in hand. When employees feel valued, heard, and supported, they are more likely to be happy and emotionally invested in their work. This positive employee experience not only strengthens internal commitment through career development, recognition, and well-being initiatives—it also translates into better customer experiences, as engaged and fulfilled employees are more motivated to deliver exceptional service.
Strengthen your HR retention strategy with expert guidance from Manpower Vietnam
Building a successful HR retention strategy requires more than internal effort - it calls for expert insight, local market knowledge, and a data-backed approach. That’s where Manpower Vietnam’s HR Consulting Servicescome in.
From diagnosing the root causes of employee turnover to designing tailored solutions for retention, our consultants work closely with your team to optimize workforce planning, engagement, and compliance. We support your journey with expertise in organizational design, workforce analytics, and employee experience enhancement, to ensure your people strategy aligns with business growth.
With around 20 years of local experience, we help businesses in Vietnam create sustainable workplaces where talent stays, grows, and thrives.
Let our experts guide your HR strategy. Fill in the form below to get started.