HR Query

HR Query: The Retention Divide—Is the Secret to SMB Stability in the Paycheck or Flexibility?

In the high-stakes world of SMB hiring, the battle for talent has never been more competitive—but new data suggests that men and women are fighting it with very different weapons. According to recent findings from Pipedrive, a distinct gender divide has emerged in retention strategies: while 52% of male hiring leaders are reaching for the checkbook to prioritize pay raises, 43% of female leaders are doubling down on workplace flexibility. Both groups are facing the same tight labor market, yet their methods for securing loyalty are worlds apart.

In this week’s HR Query, Jaime Newberry, VP of People & Culture at Pipedrive, an HR leader who is seeing the tangible results of the “flex-first” philosophy in real-time. At a time when Return-to-Office (RTO) mandates are making headlines, their team has uncovered a powerful correlation: remote employees are twice as likely to be “very satisfied” with their work models compared to their on-site peers. Below, we explore the nuances of this gendered strategic split, why flexibility is proving to be a massive satisfaction multiplier, and how SMBs can navigate the RTO tension to build a culture that actually sticks.

Here’s what he had to say.

Pipedrive’s data shows a clear divide: 52% of male hiring leaders are prioritizing pay raises, while 43% of female leaders are focusing on flexibility. Why do you think we are seeing this gendered difference in how retention is approached?

JN: Pipedrive data suggests differing retention priorities among hiring leaders, with male leaders more likely to emphasize pay increases and female leaders more likely to prioritize flexibility. This may reflect different perspectives on what drives long-term engagement—financial security on one hand, and autonomy and work-life integration on the other—shaped by varied leadership experiences and workforce realities.

Would you characterize the “pay raise” approach as more transactional and the “flexibility” approach as more relational? How does that distinction play out in long-term employee loyalty?

JN: Yes, pay raises tend to operate in a more transactional space. They address an immediate and important need, but on their own don’t fundamentally change how work is experienced day to day. Flexibility, by contrast, is more relational. It signals trust, respect for personal circumstances, and recognition that employees have full lives outside of work.

Over time, relational approaches are more likely to build emotional loyalty. When employees feel genuinely supported, they’re more engaged, more likely to stay, and more willing to advocate for their employer. That shows up in outcomes like referrals, which were the second most effective recruitment channel in 2025 at 28.5%.

Flexibility helps create cultures where employees become ambassadors, something compensation alone rarely achieves without deeper connection.

Large corporations often win on salary. For an SMB, does doubling down on flexibility—as many female leaders are doing—provide a unique competitive edge that cash alone can’t buy?

JN: Larger corporations have higher budgets, but they also have more red tape, slowing down decision-making. SMBs can move quickly to implement flexible policies that big companies are still debating, which makes flexibility a real differentiator in hiring and retention for smaller companies with fewer resources. 

Our data shows that nearly half of SMBs now offer remote or hybrid work, and 38% list flexible arrangements as a top retention tool. In 2026, these will become expectations across organizations, not just perks. 

You’ve found that remote employees are twice as likely to be satisfied with their work models compared to on-site staff. Can you walk us through the specific “satisfaction drivers” that flexibility provides beyond just skipping a commute? 

JN: Remote workers control when and where they do their best work, instead of being bound by fixed hours or blanket RTO rules. That could be starting early, taking a midday break for a school pickup, or working later in the evening. And when people feel trusted to manage their own time and responsibilities, they’re more satisfied with their workday.

They can handle personal responsibilities during the day without sacrificing their professional contributions. We’re seeing a real shift in how productivity is measured from ‘time spent’ to ‘impact delivered,’ and remote employees are leading that change. 

When employees are “twice as satisfied,” does that translate into higher productivity or lower turnover rates at your company?

JN: Both. Our 2025 State of Sales & Marketing Report found that sales professionals with four-day workweeks reported the highest satisfaction with work-life balance and were 8% more likely to hit their quotas. Meanwhile, those logging overtime (over 75% of respondents) saw worse performance, proving that more hours don’t equal better results.

We’re also seeing that 74% of those employees who have adopted AI using hybrid models report higher productivity, and 50% report improved overall performance. When satisfaction doubles, employees stay longer anddeliver stronger results.

Have you seen a direct link between these flexible models and a decrease in losing top performers?

JN: Yes. When you look at what drives top performers, they want autonomy, trust, and to be evaluated based on results. Flexible work models deliver all three. When top performers have flexibility, they stay because they’re being evaluated on impact, not time spent at their desk. That improved retention keeps institutional knowledge intact, strengthens team chemistry, and prevents talent from leaving for more flexible competitors.

Navigating the RTO Tension

For the roles that must be on-site, how can HR leaders apply the “lessons of flexibility” to ensure those employees don’t feel left behind in terms of satisfaction?

JN: The lessons of flexibility are about recognizing that different roles have different needs, just as people do. For on-site roles, HR leaders can create flexibility in other dimensions like compressed workweeks.

The future of work will be defined by balance between structure and freedom, automation and creativity. Even with on-site roles, companies can give employees more control over how their work gets done, when breaks happen, and how their contributions are measured. It’s about applying the principle of ‘impact delivered’ regardless of location.

Actionable Advice for HR Leaders

For an SMB leader who can’t afford a 52% increase in payroll, is workplace flexibility the “great equalizer”?

JN: While most larger enterprises won’t struggle to raise salaries, pay alone isn’t sustainable for many SMBs. So, when businesses are competing against corporations with deeper pockets, flexibility becomes their competitive advantage. SMBs with flexible workplace models offer something money can’t buy: a workplace that prioritizes its employees as people first.

Flexibility isn’t just about where you work, but how you work. What are some “low-cost, high-impact” flexible strategies HR leaders can implement tomorrow?

JN: Start with permission to pause. Not every meeting needs to happen, and not every day needs to be packed. Give teams explicit time to step back, whether that’s a no-meeting afternoon, a walking one-on-one, or quarterly off-sites with no forced agenda. 

Last year, I brought my Talent Enablement & Growth team to Estonia with the goal of “togetherness.” No big agenda or forced fun, just fresh air, good food, and time to connect and recharge. Sometimes the highest-impact thing you can do is create room to breathe.

Looking at the gender divide in this data, do you think we will see a shift in who is most successful at hiring in 2026? Are “flex-first” leaders going to win the war for talent?

JN: Right now, there’s a real divide with 52% of male hiring leaders prioritizing pay raises, while 43% of female hiring leaders prioritize workplace flexibility. If flexibility becomes a necessity for job seekers in 2026, then leaders who’ve already baked it into their roles will have an edge. They won’t need to overhaul job descriptions or retrofit policies. 

As talent competition continues, companies that default to rigid policies risk excluding qualified candidates before the hiring process even begins. Flex-first leaders expand the pool of candidates by meeting their expectations, giving them an advantage in attracting and retaining talent without relying solely on compensation.

Leave a Reply

Your email address will not be published. Required fields are marked *