Emotional salary refers to non-monetary incentives that make employees feel supported and valued, which boosts productivity and reduces job hunting. According to Achievers’ 2024 Engagement and Retention Guide, two-thirds of employees are considering leaving their jobs, with compensation as the top reason. However, career growth, work flexibility, and recognition also play key roles in retention. Even employees paid below market rates outperform when recognized monthly. HR should focus on culture alignment, frequent recognition, feedback, career growth equity, and work relationships to improve emotional salary and retention.

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