Replacing an employee can cost tens of thousands of dollars — yet in Northwest Arkansas, where companies compete for talent to manage the world’s largest retailer, many are watching their best people walk out the door every few years.
Companies compete aggressively for professionals with the right experience, skill set and adaptability, but once hired, the real challenge is retaining them.
While our local market is somewhat insulated from broader U.S. labor trends, retention remains a key concern. The U.S. Bureau of Labor Statistics reports the national median job tenure is just 3.9 years, consistent with our local experience. Research by the Society for Human Resource Management indicates that replacing an employee can cost between 50% and 200% of their annual salary, making retention a critical financial concern.
This rapid turnover presents a serious challenge for companies seeking to build stable, high-performing teams.
So why are top performers walking out the door? What can suppliers do to keep them? After recent conversations with dozens of professionals across the supplier community, four consistent themes emerge:
Lack of career growth
Employees want to know where they’re going and how to get there. When there’s no clear path for advancement, no opportunity to stretch and no investment in their development, they begin looking elsewhere. Growth isn’t always about promotions; employees value employers recognizing their potential and investing in their development.
To combat this, leaders must define clear career paths, invest in learning and development, and hold regular career conversations. Coaching, mentorship and project-based stretch assignments demonstrate they have a future with you.
Lack of appreciation
Employees don’t just want to be on the team — they want to feel valued by it. A lack of recognition can quickly lead to disengagement. Showing appreciation doesn’t always mean bonuses or raises (though those help). It can be as simple as personalized notes, public praise or celebrating wins in meetings — authentic, frequent gestures of recognition foster loyalty and motivation. Encourage managers to check in with employees weekly as a small yet impactful first step.
Toxic culture and poor leadership
Many leaders believe their company has a strong and positive culture — until employees tell a different story. We frequently hear about environments where negativity, overwork or a lack of recognition has worn people down.
A healthy culture starts at the top. Leaders must model integrity, respect, collaboration and transparency. Culture isn’t about free lunches or slogans — it’s about how people treat one another every day.
It’s uncomfortable to admit, but “people don’t quit companies. They quit managers.” This comes up often in our conversations with local talent. Poor leadership is a top driver of employee attrition.
Correcting this issue isn’t easy, but it’s essential. Cultivating a feedback-driven culture that empowers employees to speak up can be a game-changer. An anonymous culture survey can be a helpful way to gather honest, actionable feedback.
Compensation
While compensation is rarely the primary reason someone leaves, it is often the tipping point — especially when paired with any of the issues above. Companies that fail to stay competitive or delay promotions risk losing top talent to offers that better reflect market value.
High performers know what they’re worth. Reviewing compensation annually, especially for high-demand roles, is essential. Benchmark key roles against market data at least twice a year. Employees do not stay because they hope they will be rewarded; they stay when they are rewarded fairly and competitively.
The bottom line: To retain your top talent, start by listening to them. The companies winning in this market are proactive about career growth, culture, leadership, and recognition — and they back it up with fair, competitive pay.
Our top clients always ask, “What did the candidate think about us?”
Editor’s note: Mike Whittington is president of Match Point Recruiting, a boutique executive search firm based in Bentonville. The opinions expressed are those of the author.