What Really Works to Increase Employee Retention Rate

How many employees have left their position because they were dissatisfied with their sales manager? Our Voice of the Sales Rep survey shows that, for sales professionals, it’s 47%. It’s not always the sales manager who drives employees to the exits. And there are surprisingly easy fixes to improve the employee retention rate.

How does the sales manager impact retention?

In our research, we noticed that millennials (52%) were the most likely to have left a position because of the sales manager.

The Work Institute 2025 Retention report offers insight into why employees might leave a manager. Their data indicates that women most often leave when there are communication problems or professional behavior issues with their manager.

These issues could be classified as a “fit” problem. Sales managers, in particular, should pay attention to their fit with employees. TeamTrait’s assessment profiles show how each employee prefers to communicate with others. When a sales manager adjusts their communication style, employees will feel more comfortable in their work environment.

The data also shows that male employees leave a manager due to a perceived lack of skill. If sales managers sense that issue in their department, signing up for additional training could help.

Which strategies work to improve the employee retention rate?

Employees have varying expectations about their careers and work environment. Some of these expectations are generationally based. Others are far more individual.

What do employees want regarding compensation and PTO?

Retaining sales reps might required taking a generation-​specific strategy. Our research shows that around 55% of Gen Xers and baby boomers would expect a 15% increase in total compensation to stay with their current employers.

Only 42% of Gen Zers say the same. This may be because Gen Zers believe they lack enough experience to demand more compensation.

At least 40% or more of all reps would like a substantial PTO increase. They also want the ability to take time off without feeling guilty or that they’ll fall behind when they do.

The work environment and other factors

For 36% of Gen Zers, a kinder work environment is a plus. But for 41% of Gen Xers, moving into a higher-​level position or making a bigger impact on the company would convince them to stay.

How does a strong team influence retention?

Another employee retention rate driver is maintaining a strong team. 53% of reps we surveyed gave their sales team five stars. The Work Institute report shows a strong correlation between team satisfaction and retention across generations.

As a sales manager, you can strengthen team commitment. But it begins with supporting individual contributors.

Addressing individual motivation

First, managers can dig into what motivates a team member. If a star sales professional is primarily driven by the opportunity to learn, managers must find new tasks for them. They should know around 48% of sales reps in our Voice of the Sales Rep survey noted a desire to learn new things.

How to use AI to drive retention

One particularly important aspect of today’s selling profession is mastering AI-​based technology. Currently, only 31% of reps use AI for research or business intelligence. And 25% use the technology to help with writing outreach/​sequences.

Managers can strengthen engagement by asking their reps to improve the team’s proficiency with AI. In doing so, they’ll be developing their reps as this new technology changes parts of the sales profession.

How to address the creative drive

The desire to be creative drives many sales professionals. Managers can retain these individuals by tasking them projects that tap into creativity. For example, they can brainstorm new ways to approach prospects.

The importance of being a mentor manager

Clint Pulver, a retention expert and Manage Smarter podcast guest, says the mentor manager is the one who builds commitment. Only around 20% of employees get mentor managers. When they do, there’s a huge increase in retention. Sales managers should adjust their style to include mentoring as a way to strengthen their team.

Analysts point out that “turnover is a lagging indicator.” Months before an employee leaves, a sales manager has the opportunity to fix the situation. The data provided by TeamTrait assessment reports guide managers on how to increase their employee retention rate.

Image on Pexels by Sora Shimazaki.