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High staff turnover happens when many employees leave a company on a regular basis. Understanding the main causes helps businesses fix problems and keep their workers longer

Common causes of high staff turnover

Poor recruitment and induction

Hiring the wrong people or not giving new employees a good introduction to the company can lead to early resignations. A clear recruitment process and effective onboarding help new staff feel welcome and give them a clear understanding of their job role. See advertising a job and interviewing candidates, and advantages of job inductions.

Low or uncompetitive pay

While pay is not the only reason people leave, low wages often push employees to look for better-paid jobs. Offering fair and competitive salaries helps keep staff longer. See set the right pay rates.

Toxic workplace culture

A negative or toxic working environment makes employees unhappy. Lack of respect, poor communication, and no sense of belonging cause people to quit. A positive, 91Ï㽶»ÆÉ«ÊÓƵive culture improves job satisfaction and loyalty. See business values.

Overworked staff

Employees who feel overwhelmed with too much work or pressure often leave. Balancing workload and caring for employees’ mental wellbeing reduces burnout and turnover. See 91Ï㽶»ÆÉ«ÊÓƵ employee work-life balance.

Lack of career growth and development

If employees see no chance to learn new skills, get promoted, or develop professionally, they may leave for better opportunities. Providing training and clear career paths helps retain staff. See staff training and use mentoring to improve staff performance.

Poor staff engagement

When employees feel ignored or undervalued, they lose motivation. Encouraging feedback, involving staff in decisions, and recognising their contributions increase engagement and reduce turnover. See employee engagement.

Unsuitable work location and environment

A workplace that is uncomfortable, unsafe, or inflexible can cause staff to leave. Providing a good physical environment and offering flexible or hybrid working options can improve retention. See hybrid working: employer guidance.

Weak performance management and grievance handling

Not giving regular feedback or ignoring employee complaints causes frustration. Clear performance reviews and fair grievance procedures help employees feel 91Ï㽶»ÆÉ«ÊÓƵed. See agreeing performance objectives with staff and handling grievances.

Mismatched job roles

If employees’ skills and interests don’t fit their jobs, they may leave. Matching people to the right roles and providing mentoring improves job satisfaction. See write a job description and person specification.

High staff turnover usually results from a mix of poor hiring, low pay, bad culture, burnout, lack of career growth, and weak engagement. Fixing these areas with effective recruitment practices, fair pay, positive culture, 91Ï㽶»ÆÉ«ÊÓƵ, and development opportunities helps keep employees longer and improves business success.

To understand and control staff turnover, regularly calculate your turnover rate as a percentage using this simple method:

1. Find the average number of employees
   Add the number of employees at the start of the period to the number at the end, then divide by two:

2. Calculate turnover rate 
   Count how many employees left during the period. Multiply that number by 100, then divide by the average number of employees.

This percentage is your staff turnover rate, also called the separation rate. It helps you track changes over time and compare your business to industry averages for benchmarking.

Employee stability index

To measure how well you retain experienced employees, calculate the employee stability index (ESI) by using the following equation:

$$\mathrm{ESI}(\%)=\frac{\mathrm{Number\; of\; Employees\; with\; 1+\; Year\; Service}}{\mathrm{Total\; Employees}}×100$$

A higher ESI means better retention of experienced staff.

Monitoring turnover patterns

To create a survival curve, plot the number of employees leaving against their length of service. Usually, turnover is highest among new hires and decreases the longer the employees stay. This curve helps identify when employees are most likely to leave and can guide your retention efforts.

Understanding why staff leave

To effectively reduce turnover, find out the reasons behind it:

Consult staff regularly

Talk to employees individually or in groups to uncover issues. See engaging with staff.

Exit interviews

Conduct interviews when employees leave to learn their reasons and spot trends. See when an employee resigns.

Staff surveys

Use surveys to measure satisfaction and address concerns promptly. See staff feedback, ideas, and forums.

Analyse your recruitment practices

Review hiring and selection processes to ensure you set clear expectations and hire the right people. See taking on staff.

By calculating your staff turnover rate and employee stability index regularly, and analysing turnover patterns and causes, you can better understand why employees leave. This insight enables you to take targeted actions to improve retention and build a stronger workforce.

When employees leave your company, it costs more than just hiring new people. Understanding these costs can help you take steps to reduce turnover and protect your business.

Financial and resource costs of staff turnover

When a staff member leaves, your business may face several direct costs, including:

Exit tasks

When an employee leaves, you will need to spend time on exit interviews and updating payroll.

Loss of skills

Losing experienced or skilled employees affects your team’s strength.

Covering vacancies

You will have to pay for temporary staff or overtime until you fill the vacant role.

Recruitment expenses

You will need to allocate time and money to advertising jobs or paying recruitment agencies.

Hiring process

You will need to dedicate time to reviewing applications, interviewing, and selecting candidates.

Onboarding new staff

Once you have appointed a new employee, you will need to spend time and resources to induct and train the new employee.

Training

You will need to invest in developing new staff to help them reach full productivity.

Hidden costs of staff turnover

Seeing others leave can make remaining employees consider quitting.

Increased stress and absences

Remaining staff may feel overwhelmed, leading to more sick days.

Missed deadlines and workflow interruptions

Losing staff disrupts projects and daily tasks.

Lower productivity and quality

Customer service and work standards are likely to drop.

Reduced morale

Losing popular or skilled employees can hurt team spirit.

Damage to reputation

High turnover can make your company less attractive to future candidates.

Vicious cycle of high staff turnover

High staff turnover can create a cycle where low morale leads to more departures, which further lowers morale. This cycle can seriously harm your business if not addressed.

Reducing staff turnover saves money, keeps your team motivated, and maintains your company’s reputation. Taking practical steps to improve retention is essential for long-term business success. See reduce staff turnover.

To reduce staff turnover, businesses need to implement strategies that address both new hires and long-term employees, focusing on minimising unwanted and unplanned resignations.

Reducing the turnover of new staff

High turnover among new recruits often signals issues with recruitment or onboarding. To address this:

Recruitment and selection process

• Ensure job adverts accurately describe the job role.
• Use selection tests to identify suitable applicants.
• Avoid hiring overqualified staff, as they may quickly become bored and leave.
• Do not rush into appointing anyone to fill a vacancy.
• Be clear about the role and evaluate candidates based on job-related criteria.
• Attract top talent by showcasing company benefits during the hiring process - see employee value proposition.
• Coordinate with hiring managers to set clear expectations for new hires.

See taking on staff.

Staff induction or onboarding

• Develop a comprehensive induction programme that gives a holistic view of the business.
• Involve existing staff in the induction process to share what new hires need to know.
• Encourage team members from different departments to explain their functions to new recruits.
• Foster an environment where new hires feel comfortable asking questions and seeking help.
• Ensure new staff are not overwhelmed with work during their initial period.
• Provide a warm welcome and clear expectations from day one, including access to necessary technology, resources and training.

See induction programme: what to include.

Job training

• Gradually introduce new recruits to tasks without overwhelming them.
• Implement a 'buddy system' to pair new hires with experienced staff for on-the-job learning.
• Line managers should monitor the new recruit's progress closely.
• Give new hires meaningful and challenging tasks with guidance.

See staff training.

Reducing the turnover of longer-term employees

Retaining experienced staff requires addressing wider issues like company culture, organisational structure and management style. The following methods may help reduce turnover amongst longer-term staff:

Management 91Ï㽶»ÆÉ«ÊÓƵ and leadership

• Support staff to make them feel valued and motivated.
• Provide clear leadership so employees understand the business direction and their contribution to it.
• Regularly check in with employees and recognise their contributions.

Business culture

• Promote a positive and inclusive business culture that fosters trust, communication, and appreciation for feedback.
• Encourage diversity, equity and inclusion to create a workplace where all employees feel valued and have equal opportunities.
• Ensure clear communication and consultation to engage staff and prevent rumours.

Employee empowerment and feedback

• Allow staff to make some decisions, fostering trust and engagement.
• Regularly thank staff for their good work to show your appreciation.
• Establish clear channels for staff feedback, enabling them to raise concerns and suggest improvements.
• Listen to employee concerns to ensure their opinions are valued.

Pay and benefits

• Ensure pay rates are fair, competitive and regularly adjusted to market standards.
• Offer comprehensive benefits packages, including health insurance, retirement plans, paid time off, and other incentives.
• Consider offering individual or team productivity bonuses and performance-related pay.

Work-life balance and flexibility

• Support employees in achieving a healthy work-life balance through flexible working policies, such as remote work, compressed hours, or flexi-time.
• Encourage disconnecting after hours and honouring holiday time.
• Provide training resources like time management workshops and stress management seminars.

Training and development opportunities

• Invest in staff by providing time and opportunities to learn new skills.
• Offer clear pathways for career development, including promotions, mentoring, and coaching.
• Encourage internal mobility and prioritise internal candidates for open positions.
• Provide individualised development plans based on performance reviews and career aspirations.

Performance management

• Regularly review staff performance, provide feedback, and identify areas for improvement.
• Link employee objectives to overall organisational goals to help staff understand their contribution.

Working environment

• Ensure suitable and safe working conditions, including workspaces, facilities, and rest areas.
• Introduce variety into job tasks to maintain staff interest and motivation.
• Allocate resources optimally to match skills and interests, avoiding disengagement from under or over-qualified employees.

Discipline and grievance

• Have proper, effectively applied disciplinary and grievance procedures in place.

Reducing staff turnover by developing employee skills is a powerful strategy that benefits both your business and your workforce. We’ve outlined below how investing in training and development can help you keep your employees longer and improve overall performance.

Why develop employee skills?

Improves business performance

Well-trained employees work more productively and deliver better results.

Reduces staff turnover

Staff who see relevant training and growth opportunities feel valued and less likely to leave.

Boosts engagement and motivation

Continuous learning keeps employees interested and motivated in their roles.

Builds loyalty

Offering career development shows a commitment to employees’ futures, fostering loyalty.

Enhances leadership

Training managers to lead and motivate staff creates a positive culture and retains talent and skills.

How to use training to reduce staff turnover

Create clear training policies

Ensure employees understand early on that your business invests in their development. This builds trust and commitment.

Offer relevant and practical training

Employees should be able to apply new skills directly to their work, making training meaningful and useful.

Use multiple training methods

Combine on-the-job training, mentoring, workshops, and external courses to suit different learning styles.

Develop leadership and people management skills

Train managers to 91Ï㽶»ÆÉ«ÊÓƵ, coach, and motivate their teams, as poor management is a key reason for staff turnover.

Provide career pathways

Show employees how training can lead to promotions and new responsibilities, encouraging them to stay and grow with your company.

Encourage soft skills development

Communication, teamwork, and leadership training improve workplace relationships and job satisfaction.

Measure impact

Track retention rates, employee satisfaction, and performance improvements to ensure your training programmes are effective.

Investing in employee training and development creates a skilled, motivated, and loyal workforce. It reduces staff turnover by making employees feel valued and giving them clear opportunities to grow within your business. Training your managers to lead further strengthens retention by fostering a positive and 91Ï㽶»ÆÉ«ÊÓƵive workplace culture.

By prioritising learning and development, your business not only keeps its best talent but also builds a competitive advantage through a more capable and engaged team.

The checklist below will help employers control staff turnover in their business.

Checklist to reduce and manage staff turnover

Using this checklist helps you identify causes of turnover early, improve employee satisfaction, and maintain a stable and productive workforce.

1. Track and monitor turnover

   • Keep detailed records of employees who leave.
   • Regularly calculate and monitor your staff turnover rate.
   • Benchmark your staff turnover rate against similar businesses in your industry.

2. Understand why employees leave

   • Conduct exit interviews confidentially, away from the employee’s direct manager.
   • Use staff attitude surveys or focus groups to gather honest feedback.
   • Review exit interview data objectively to identify common reasons for staff leaving.

3. Improve recruitment and onboarding

   • Ensure job adverts accurately describe roles and expectations.
   • Refine recruitment and selection processes to match candidates to roles and culture.
   • Develop a thorough induction programme to integrate new staff effectively.

4. Review pay, benefits, and working conditions

   • Regularly review and benchmark pay and benefits to remain competitive in the job market.
   • Assess and improve working conditions, including flexibility and work-life balance options.

5. Develop staff and management

   • Provide training, development, and clear promotion paths to engage employees.
   • Train managers in effective leadership, coaching, and people management skills.
   • Encourage open communication and regular feedback between staff and management.

6. Foster a positive business culture

   • Promote trust, respect, diversity, and inclusion within the workplace.
   • Encourage teamwork and shared goals.
   • Recognise and thank staff for their contributions regularly.

7. Manage performance and address issues

   • Implement fair and transparent appraisal and performance management systems.
   • Have clear, well-communicated disciplinary and grievance procedures.
   • Act promptly on feedback and concerns raised by employees.

8. Plan for staff changes

   • Develop succession plans to prepare for key employee departures.
   • Create a contingency plan to manage workload during vacancies.

See reduce staff turnover.

Best practices for exit interviews

• Conduct interviews confidentially and in a comfortable setting to encourage honest and constructive feedback.
• Assure employees that their feedback will not affect references or future opportunities.
• Use structured, consistent questions to capture comparable data.
• Analyse feedback regularly to identify trends and areas for improvement.
• Act on insights gained to improve retention and workplace culture.