Hiring a new employee is a demanding process. Think of all the time and effort required to draft job descriptions, source candidates, organize interviews, and make tough decisions! At the end of this rigorous process, everyone involved should have a reason to celebrate. Unfortunately, high turnover rates can overshadow even the most ambitious organizational plans for the future. Instead of focusing on growth—both for the organization and individual careers—HR teams and managers are left scrambling to fill gaps, forcing employees to do more with fewer resources. In fact, employees are feeling the strain. According to a recent survey shared by HR Dive, 62% of workers report experiencing extra pressure to perform more at work, leading 33% to note a significant drop in workplace happiness. These negative sentiments have led to a concerning outcome: “One-third of respondents stated their desire to stay in their current job had decreased, while another third actively considered leaving their organization.” For struggling HR teams, trying to move forward while constantly addressing turnover issues is simply unsustainable. A Worrisome Example A recent study from the Wharton School highlights the challenges posed by turnover. Researchers collaborated with a Chinese smartphone manufacturer to track product failure rates over four years. With unprecedented access to corporate data, they pinpointed the exact date, time, and location of every phone's assembly, along with the staffing levels at the time. Unsurprisingly, as weekly turnover rates in factories increased, so did product failure rates. The associated costs of these failures amounted to hundreds of millions of dollars. The findings challenged some common workplace assumptions. Managers believed that replacing a departing employee with someone equally skilled would resolve the issue, but this solution also proved disruptive. “The departing employee possesses knowledge that is not easily replaced,” observed Ken Moon, a professor of Operations, Information, and Decisions at Wharton. “Even though an assembly line is not a deeply collaborative environment, there’s still a need to coordinate with those around you. And that matters.” Four Ways to Rethink Turnover Examples like Wharton’s serve as a wake-up call for employers. While recruiting to fill team gaps is necessary, it’s equally vital to refocus on retention. Institutional knowledge doesn’t develop overnight. When teams are stretched too thin, it becomes nearly impossible to provide adequate onboarding and continuous training to build such expertise. To shift from high turnover rates to promising retention rates, companies must rethink turnover by concentrating on four key areas: DEI (Diversity, Equity, and Inclusion), Growth, Communication, and Culture. Diversity, Equity, and Inclusion (DEI): Numerous studies have shown that employees want to work for companies that value diversity. However, they can easily detect empty promises. Mentioning DEI in job descriptions and corporate branding is a good first step, but failing to follow through risks alienating workers. Concrete actions—such as hiring a dedicated DEI team, launching affinity groups, and scheduling regular check-ins with employees—can transform words into meaningful action. Opportunities for Growth: No one wants to take on a new role only to feel stagnant. According to Forbes, 76% of employees say they are more likely to stay with a company that offers continuous training. When this doesn’t happen, one in two employees seeks learning opportunities independently, putting employers at risk of losing talent. To prevent this, it’s essential to build a robust internal training system that supports employees from onboarding to ongoing skill development. Holistic Communication: Communication must be a two-way street. This was true when most employees worked in one location and is even more critical with the rise of remote and hybrid work models. Few things drive talent away faster than making employees feel unheard. Expanding feedback opportunities—through tools like anonymous surveys and virtual town halls—is vital in a decentralized work environment. Adaptable Culture: It may sound repetitive, but culture is crucial—and it’s true! However, instead of forcing employees to adapt to a rigid cultural model, companies should be open to expanding their culture through inclusion rather than exclusion. Steps like diversifying the talent pool and leveraging transferable skills and analytical insights about current employees can help shape an organization’s evolving direction. Culture is a living entity; it’s time to treat it as such!
