Reducing Employee Turnover: 3 Proven Methods - ApplicantStack

Employers have faced unique challenges over the past few years. Between the pandemic and ensuing public health orders that required business closures and other unique situations, many struggled to maintain a consistent workforce. The Great Resignation of 2022 created a whole new set of difficulties in meeting customer needs and maintaining business stability and growth. As we move toward 2025, many employers have renewed their focus on reducing employee turnover. But how well have those efforts fared, and what could be done differently? We’re outlining three proven methods for boosting retention and keeping employees happy in their roles.

The Effects of High Turnover Rates

A high employee turnover rate creates a ripple effect that impacts nearly everyone in the organization. Here’s what we mean:

When an employee chooses to leave their role, that creates a vacancy on their team. The remaining members of that team may be asked to pick up the slack, taking on additional responsibility (at least until the role is filled once again). These individuals may experience extra stress at work due to looming deadlines and heavy workloads.

The stress often makes its way to supervisors, who may feel concern over whether the work will get completed and projects remain on schedule. They may also deal with more interpersonal conflicts as members of their team experience higher frustration levels from taking on additional work.

Those involved in the hiring process are also impacted by the departure. They are responsible for posting the open position, reviewing applications, scheduling and conducting interviews, and contacting references. Filling one open position can take anywhere from several weeks to several months, and high turnover rates can require the posting and filling of multiple roles regularly.

Since high turnover rates also impact business success, upper-level management and leadership teams will also feel the impact. Profitability and revenue are directly affected by employees leaving, whether due to the expenses of bringing on new team members, the costs associated with training new hires, lost productivity and sales, or a combination of all those elements.

Workplace morale is lower in companies with high turnover rates. Employees tend to feel less motivated when their colleagues leave, and the ensuing disengagement has an impact on productivity. Plus, low morale spreads throughout departments, particularly as people chat amongst themselves about their frustrations and concerns. These employees may wonder whether they should leave as well.

3 Proven Ways for Reducing Employee Turnover

Business leaders weighed in on the top methods for reducing employee turnover, and here’s what they believe can make a real difference.

Implement Career Development and Mentorship Programs

Most workers want to progress in their careers and reach new heights. Offering a path for your team members to achieve their professional goals can make a real difference in whether they choose to stick around or move on. According to the co-founder of Upskillwise, the mentorship and career development program implemented supported a lower turnover rate after the pandemic. Employees are paired with experienced mentors, receiving support and guidance as they navigate their futures.

Look for a way to implement a similar program in your organization. Consider who could be paired up and offer insights. Taking this step could help your company keep turnover rates low, as it did for another business leader.

Maintain Transparency around Compensation

Even if your company takes pride in offering fair or competitive compensation, employees may still feel like they aren’t being paid enough. And pay is the second-most common reason for leaving a job, according to a recent article published by Indeed.

Transparency around compensation is an absolute must in today’s world. People have access to more information than ever before, and your employees are likely looking at salary data online. If they feel they could earn more elsewhere, they will likely seek out those opportunities. But fostering an open and honest conversation around total compensation (including any available incentives or benefits) can reduce the risk.

Look for Opportunities for Flexibility First

Everywhere you turn, you may be hearing about companies implementing their “return to the office” plans. Some of the most well-known include JPMorgan, Apple, Goldman Sachs, Tesla, and Amazon, although countless others have taken steps toward a full return to in-person work. However, employees who crave flexibility may end up leaving over such a mandate.

Consider whether your company can adopt a flex-first approach to scheduling and physical work locations. Of course, not all roles are well-suited to remote work, but for those that are, try to make accommodations where possible.

The CEO and co-founder of EchoGlobal echoed these sentiments, emphasizing the value of shaping work policies around the input of employees and what they need and want from their employers. Maintain an open line of communication and keep tabs on what people are saying. Taking these steps (and a flexible approach) can make a big difference in whether employees feel valued and want to stay.

As you work toward reducing employee turnover rates, consider what might impact your organization and its workforce. By tailoring your strategies to the needs of employees, you can align the company with their ideal workplace and showcase how much you value them. These efforts are directly linked to improved morale and overall happiness, which lessens the chance they’ll be looking elsewhere for work.