The Arborwear team at Arborwear HQ, posing for the 2025 Top Workplace Award, given by Cleveland.com and The Plain Dealer. (Arborwear has received this award six years in a row!) Photo courtesy of Josie Cremeans.

Industry statistics show that the cost of hiring is between $3,000 and $5,000 per new employee. Those are direct costs that include recruiting, advertising, background checks, verifications and onboarding, not training or loss of productivity.

Doing some basic math, you can see the impact on your own company. If the average is $4,000 per hire, multiply this by the number of people you hired last year. If you hired 10 people, you spent $40,000; if you hired 100 people, it means you spent $400,000. And so on.

Quite simply, if you increase employee retention, you will spend less money. In addition, there are many other benefits to increased employee retention that are not as simple to measure as reducing expenses. Things like higher engagement, improved morale, stronger culture and reduced risk often accompany increased employee retention.

Most companies we work with have a goal of increasing employee retention. Some, however, do it better than others. Over the years, we’ve identified a few common denominators in those companies that actually move the needle successfully.

We’ve found that the common denominators to increasing employee retention are alignment, a dedicated budget, inclusion in decision-making and measurement.

Alignment

Companies that establish increased employee retention as a goal get on the same page way before the first recruiting ad is ever placed. Decision-makers and influencers in every department of the company agree on the costs for the company to hire someone. With this sort of alignment in place, every single person in the company can make a difference in the success of retaining employees. With all departments bought in, it becomes everyone’s priority, not just the person in human resources.

A dedicated budget

Companies that successfully increase their employee retention establish a specific budget for this goal, and therefore invest money in achieving it. They have calculated what it means to the bottom line if they reduce their hiring and they’re willing to spend money to make a difference.

Using this budget, some successful companies adopt recognition routines that everyone in the company follows. These routines can include simple measures, such as sending a “welcome kit” to a new hire’s home before their first day. This is an impressive, low-cost gesture that makes a great impact on not only the new hire, but also the family.

For example, receiving a uniform needed for the first day on the job makes that new hire feel like they’re part of the team. There is no awkward moment of showing up in what clearly identifies them as a newbie. If not a uniform, a collection of gear or merchandise, featuring the company’s logo, can go a long way.

Letters of welcome and congratulations from the ownership of the company can also be a meaningful step to complete onboarding procedures.

Once on the job, 90-day recognition awards can mark a new stage that for many signifies that a new hire is there to stay. Typically, these are deeper investments but deliver more meaningful impact.

All types of recognition can be part of these routines. Work anniversaries, birthdays, promotions, any milestone for that matter, is an opportunity to show an employee that they are recognized and part of the team.

And remember, not all routines have to cost money. Face-to-face daily check-ins with new hires for the first week, weekly check-ins during the first month and monthly check-ins for the first 90 days are examples of routines that, if established, will deliver results. These can be as simple as a ten-minute one-on-one conversation or a closed-door meeting to discuss progress. The key is that everyone follows these procedures or routines – they are part of the company culture.

Decision-making inclusion

Another common denominator among companies with higher retention rates is including employees in decision-
making. When recognition programs or routines are being defined, companies that involve more team members in deciding what deserves recognition tend to create more meaningful programs.

Similarly, decisions about what is rewarded – and why it really matters – are received more favorably when those ideas come from the people delivering the recognition.

Measurement

The fourth key to any strategy or goal within a company is measuring employee retention. Timely evaluations of progress and calculations of expenditures will show results. These must be calculated and shared – and approached with a great degree of patience. Many companies struggle with patience and want to see results right away. Realizing it takes time to change behavior and produce real results is a must when talking about employee retention.

Conclusion

No matter what size the company, or the tactics used to drive increased employee retention, these common denominators continually surface. Talking about them, understanding them and working together will drive results in your own company.

Bill Weber has been team captain at Arborwear for 25 years. He was a tree-service owner/operator for six years and considers himself a mental entrepreneur forever.

Weber will be presenting “Attention to Retention” at TCIA’s Business Growth Workshop, which will be held from April 30 to May 1, 2026, at the Arborwear Headquarters in Chagrin Falls, Ohio. Click this TCIA link for more information.

The Arborwear sales team at their booth at TCI EXPO ’25. Photo courtesy of Bill Weber.