In the next four years 20% of the population will be Gen Z (aged 18-28). As of 2023, their presence in the workforce already surpassed that of the Baby Boomers.This demographic shift matters because Gen Z brings different expectations to work, including a desire to travel for work. In fact, 70% of Gen Z look forward to work trips, proving that work trips will become a more and more important part of every company’s employee retention plan, especially when trying to attract younger talent.
As companies search for ways to keep employees engaged, motivated and committed, travel proves to be a great way to do so. We’ll look at employee retention strategies and how travel can not only keep your employees happy but can also drive employee engagement.
Retention definition: What is employee retention?
Employee retention is the ability of a company to retain its employees. By decreasing employee turnover, companies can decrease training costs, recruitment costs and prevent talent and organizational knowledge from escaping. To do so they often use different employee retention strategies like offering flexible hybrid & remote options, investing in career development, providing competitive compensation, focusing on wellbeing and burnout prevention, among other tactics.
Why employee retention is becoming more challenging
As Gen Z continues to join the workforce and Baby Boomers transition out, we’re seeing a clear shift in what employees expect from their employers and what keeps them engaged. Youngsters have a tendency to switch jobs and decline average tenure to find their place in the workforce and to slowly climb up the corporate ladder. There is also increased competition for talent in hybrid and remote-first work environments as comfort and convenience becomes a priority.
Employee turnover is incredibly expensive due to training costs, recruitment costs and talent loss, with the cost of replacing a single employee ranging from 40% to 400% of their salary, depending on the role. With 51% of U.S. employees “watching or actively seeking” a job, the risk of churn remains high, making proactive retention strategies essential to maintain stability and control costs.
The power of business travel in employee retention
Business travel might be overlooked but it is a powerful tool in driving retention. Below are some reasons why it’s important.
Travel provides professional development
By having exposure to clients, markets and senior executives, business travelers can gain the opportunity to build confidence and skills relating to their professional career. This means they can grow professionally, which on a personal level makes employees more confident and proactive.
Travel as an incentive
Business travel often acts as an unspoken form of recognition. When employees are chosen to travel and represent the company at an event, meeting or conference, this signals to them that they are being seen as capable, credible and worth investing in. And particularly for younger talent, it feels like a vote of confidence to be selected to handle important conversations for the business.
Travel also helps break up the monotony of daily work, offering new environments and opportunities, which strengthen engagement and loyalty. By treating travel as an incentive or a perk, business travel becomes a powerful retention tool.
Cultural and team benefits
By organizing teambuildings for remote or hybrid teams, you can create stronger cross-team relationships while also reinforcing engagement. Studies have shown that after a group bonding experience, productivity increases by 20% over three years and team cohesion increases by 25%. 79% of employees also say teambuilding strengthens workplace relationships and trust.
How business travel drives employee engagement
- Increased sense of purpose and visibility within the company
- Strengthened connection to company culture when employees meet colleagues or clients face‑to‑face.
- Increased motivation due to change in the environment and routine.
- Enhanced creativity and problem solving inspired by new settings.
Tips for designing business travel with retention in mind
- Leverage travel for all levels of employees, not just senior staff
- Create clear travel policies reducing friction in booking, approvals and expenses. You can do this by encouraging the use of an easy-to-use booking tool like GetGoing.
- Offer flexibility and choice when it comes to travel. Offer a wide selection of accommodation, the ability to add on a bleisure portion and give sustainable travel options.
- Make trips meaningful and productive; don’t make it about traveling for the sake of traveling.
- Ensure safety and wellbeing are part of the travel experience
Use travel data to improve retention strategies
Effectively using your travel data can transform corporate travel from a purely logistical function into a strategic retention tool. You can track travel activity across departments, seniority levels and demographics, gaining a clearer picture of who is benefitting from these travel opportunities and see how that impacts engagement and employee retention. This will help leaders make data-driven decisions by understanding which types of trips deliver the greatest impact on motivation, development and connection.
Over time, these insights can help optimize ROI ensuring that travel budgets are being used to strengthen relationships, build skills and reinforce retention. Business travel isn’t just a logistical necessity – it’s a strategic HR tool. Be sure when designing travel programs to align them with generational expectations. Companies that can make travel a key part of their retention strategy will build more engaged, loyal and motivated workforces.
Level up your travel program and retention strategy with GetGoing.