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Preserving talent: A guide to minimizing employee turnover

Learning and Development | 6 Min Read

Preserving talent: A guide to minimizing employee turnover


In today’s dynamic business environment, employees’ expectations go beyond a paycheck. It has become necessary for organizations to foster an employee-centric culture to reduce employee turnover rates. Companies that foster a thriving and stable work environment are able to improve workplace efficiency and employee satisfaction, ensuring high retention rates.

Delve into a comprehensive exploration of various strategies that organizations can adopt to retain their top talent and build a loyal and engaged workforce.




Understanding employee turnover

Employee turnover defines the percentage of employees leaving the company during a certain period. One of the main purposes of calculating employee turnover is to measure the performance of the company’s hiring strategies.

Employee turnover can be of two main types:


Involuntary turnover

Involuntary turnover occurs when the company lays off the employee. Some of the most common examples of this type of turnover are retirement and downsizing.


Voluntary turnover

Voluntary turnover occurs when an employee leaves the company of their own will, for instance, to work for another organization.


What are the leading causes of employee turnover?

Lack of career development and growth

When employees are not able to envision a future with the organization or see growth, they may consider other employment options.

Work-life imbalance

Today, having a work-life balance is important. Overworked employees may decide to seek new opportunities.

Poor compensation

A worker under-compensated for their skills feels undervalued. This may encourage them to look for better pay and benefits.

Lack of recognition

When employees feel their hard work and contributions are not acknowledged, they become disengaged and look for other employment options.


High employee turnover rates: How does it impact the organization?

Reduction in productivity

Workflow and team relations might be disrupted by frequent turnover. New staff require adjustments in schedules, which contributes to decreased overall productivity. The departure of an experienced team also entails losing institutional knowledge and competence.

Delay in the recruitment process

The time it takes to recruit, hire, and onboard new employees can cause delays in project timelines and hinder the organization's ability to meet its goals.

Company's reputation

A high turnover rate can negatively impact your organization's reputation. It may raise questions about the hiring strategies of the company.

Decreased employee morale

Constant turnover can create an environment of uncertainty and instability. Existing employees may become demotivated and disengaged when their colleagues leave. This can lead to a downward spiral of lower morale, increasing turnover rates.


Eight effective strategies to reduce employee turnover


1. Find suitable people for different roles

The first step toward reducing employee turnover is to hire suitable people for different roles. Thoroughly evaluating candidates for technical skills and cultural fitment reduces turnover. Employees who resonate with the company’s culture are more likely to stay engaged and committed, leading to longer tenures.

2. Adapt flexible working 

Today’s modern work environment is leaning towards a flexible approach. Enabling employees to balance work with personal commitments can enhance job satisfaction and loyalty.

3. Focus on onboarding

Onboarding is about providing new employees with the necessary tools, information, and connections to integrate seamlessly into the company. A structured onboarding approach creates a positive and motivated work environment.

4. Maintain inclusivity

An inclusive workplace fosters a sense of belonging for employees from diverse backgrounds. When everyone’s contributions are respected and valued, individuals are more likely to be engaged and invested in the organization’s success. Reducing turnover requires creating an environment where employees feel understood, respected, and empowered to contribute their unique perspectives.

5. Skills gap analysis

Conducting certain assessments, like Mercer | Mettl’s Skill Gap Analysis, helps organizations reduce employee turnover. Regularly assessing employees’ skills and identifying areas for improvement is crucial for their professional growth. When organizations invest in training and development to bridge these gaps, employees feel supported in their career journeys.

6. Leadership development

It is necessary to assure employees they have a stable future within the organization. Offering opportunities for leadership development empowers employees to envision a long-term future. Mercer | Mettl’s Leadership Assessment assesses leadership skills and identifies high performers, allowing businesses to invest in employees’ growth.

7. High potential identification

One of the most proactive strategies for reducing employee turnover is identifying high-potential employees and providing them unique opportunities. By offering special projects, mentoring, and challenging assignments, organizations show that they recognize and value these individuals.

8. Reward and recognize employees

One of the main reasons why employees leave a job is because they feel underappreciated or non-recognized for their efforts. Therefore, businesses must have a strong employee appreciation and reward strategy to provide employees with constructive feedback.

Mercer | Mettl’s 360-Degree Feedback ensures feedback of employees from managers, peers, and team members for comprehensive evaluation. This allows hiring managers to create upskilling, learning, and cross-skilling strategies.



Reducing employee turnover is a multifaceted endeavor that demands a comprehensive approach. Embracing strategies, including professional development, flexible work arrangements, recognition, and more, help organizations create an environment where employees feel valued, engaged, and motivated. This translates to increased productivity and efficiency and establishes the organization’s reputation as an employer.





How can leaders reduce turnover?

What can an organization do to reduce employee turnover?

What are the six factors that can affect turnover?

Originally published August 29 2023, Updated September 1 2023

Written by

Vaishali has been working as a content creator at Mercer | Mettl since 2022. Her deep understanding and hands-on experience in curating content for education and B2B companies help her find innovative solutions for key business content requirements. She uses her expertise, creative writing style, and industry knowledge to improve brand communications.

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