5 reasons your employee turnover is too high and how to overcome them

This article is a submission by Peter Jobes of Solvid. Jobes is a tech, business & blockchain writer, having worked with the Press Association and clients like Tesco, RAC and HelpUCover.

For most businesses, high employee turnover is a leading, preventable drain on output and profit. It takes real work to find the right people and train them well. So losing staff often costs more than it first appears.

Why is employee turnover too high, and how do you fix it?

Employee turnover runs too high when staff feel overworked, undervalued, or poorly matched to the role, and you fix it by improving culture, purpose, hiring, and rewards.

• Heavy workloads and weak recognition push people to leave.
• A poor culture or hiring fit speeds up the exits.
• Small, steady changes keep good staff on board.

Statistically speaking, it costs $16,061.76 to replace the average US employee, before salary and equipment. So keeping current staff happy and skilled is vital. For more context, these employee turnover statistics show how widespread the issue has become.

One Work Institute report projected involuntary turnover climbing to almost 30% in 2023. As a result, firms that ignore turnover face steep, avoidable costs. However, the causes are clear and fixable. For example, they range from culture and pay to workload and career growth.

5 reasons you have excessive employee turnover

Let’s take a closer look at why your turnover may be too high. Next, we cover how to get each cause under control.

1. Your employees are overwhelmed with workloads

When staff feel their workload is too heavy, they can burn out and look elsewhere. It is natural to complain a little during a busy stretch. Still, if they continue to show discontent or drag their feet, that may signal real strain.

Some staff will not say their workload feels heavy. So watch for the signs that something is off. For example, ask each person in a one-to-one if they have views on their load. Also make yourself easy to approach. Everyone should feel free to speak up when they struggle to keep pace.

Suppose turnover stays high with no clear complaints. In that case, a simple turnover rate calculator can help you spot trends among leavers. In addition, tracking employee retention metrics gives you sharper insight and tighter control.

2. Your workers lack a sense of purpose

It is easy to forget that a person’s job sits at the center of their life. When people meet, work is often the first talking point. So a lack of purpose can weigh on an employee. Workers want roles that pay well and make them proud.

You cannot upgrade every job title to add big duties. However, a LinkedIn Talent Trends Survey found that firms with a clear mission saw 49% lower attrition. So make goal-setting a core part of each person’s journey. Also be open about your company’s aims. As a result, staff feel they help drive real growth.

3. Employees are unhappy with your company culture

Company culture is a major driver of turnover. Many factors feed dissatisfaction levels. For example, these can include:

• Workplace gossip
• Lack of communication
• Letting conflicts fester
• Unfriendly competition
• Lack of accountability
• Inappropriate conduct
• Insufficient managerial support
• Micromanagement

Some people are simply a poor fit for a company. However, if your vetting deemed them a good match, you must look after them well. So try more team-building, like a sports day or team lunches. In addition, offer a way to share anonymous feedback. This helps staff raise the harder issues. A positive, supportive work environment keeps more people on board.

4. Your recruitment process is lacking

As noted above, hiring is about more than picking the most qualified person. HR must also find the best culture fit and shared values. So a weak process often breeds friction between a worker and their manager.

To avoid this, put a solid vetting process in place. Look at personality alongside skills and experience. It is also worth improving your onboarding. For example, tools like VR onboarding give recruits a fuller view of the company. Strong onboarding practices for new hires help them settle in faster.

Hiring the perfect person is never easy. Still, forcing a poor fit rarely ends well. Even under pressure to fill a seat, a bad match hurts your team. After all, no one does their best work while unhappy.

5. Staff feel that their work isn’t sufficiently rewarded

Work fills most of a person’s waking hours each week. So feeling rewarded means a lot for their happiness. Working hard with no credit stings. Watching someone else take the credit stings even more. Because of this, every business must make staff feel valued.

For managers, a simple “well done” can mean the world. Still, a clear reward system for strong performers works even better. Pay is another key issue. As living costs stay high, bigger pay rises can be hard to fund. However, being open about career paths and promotion pay still helps. As a result, you lift output without straining tight budgets right away.

Getting around high employee turnover

Turnover is a costly loss, yet it is also a useful metric. So use it to improve employee satisfaction. Treat your turnover rate as a barometer, and work to cut resignations where you can.

Hiring and training new talent takes a real toll on any business. So it pays to take small steps that keep staff happy. For example, set clear employee goals and check in more often. In the end, these are some of the easiest money-saving moves in the book.

Frequently asked questions about employee turnover

What counts as a high employee turnover rate?

It varies by industry and role. A rate well above your sector’s average is a red flag. So compare your numbers to peers, not just to last year. Then dig into why people leave.

What is the difference between turnover and attrition?

Turnover covers all staff who leave and get replaced. Attrition often means roles left unfilled after someone exits. For a fuller breakdown, see this guide on turnover versus attrition. So the two terms track related but distinct trends.

How much does employee turnover cost?

Costs add up fast across hiring, training, and lost output. One estimate puts the average US replacement at over $16,000. In addition, new hires may take months to reach full speed. So retention almost always costs less than churn.

How can I reduce employee turnover quickly?

Start with the causes you can fix now. First, ease heavy workloads and clarify each role. Next, recognize strong work and open up career paths. As a result, more of your best people choose to stay.

Which teams should I watch most closely?

Watch teams with the highest exit rates and the busiest schedules. Also track new hires in their first year. Because of this, you can spot fit and onboarding gaps early.