How to reduce employee turnover

Employee turnover is one of the most common problems companies face. Employee departures not only mean financial costs, but also loss of know-how, decreased team morale, and a slowdown in company operations.

The most common reasons for fluctuation

Among the most common reasons are:

• inappropriate employee selection,
• Misalignment with company culture,
• weak onboarding,
• Insufficient feedback and motivation.

How to Reduce Turnover: Practical Tips

• Focus on quality onboarding and adaptation.
• Working with feedback and motivation
• Build clear career paths
• Create a safe and open work environment

How does a staffing agency help?

A quality staffing agency can identify candidates who are not only experts but also align with your company's values through thorough selection, testing, and interviews. This significantly reduces the risk of them leaving in the first few months.

Employee Turnover: The Silent Budget Eater

Turnover isn't just an HR problem. It's a financial problem that impacts every company's bottom line. At a time when we face increasing pressure on productivity, cost optimization, and business sustainability, it's important to control the costs associated with unwanted employee departures. According to a Work Institute study, an average of 2 out of 5 employees leave annually, with these numbers varying depending on the position and even the industry in which the employer operates. Turnover is a reality, but its extent and costs can only be managed if we understand them.

What is the real cost for us

It sounds dramatic, but every employee departure costs the company on average from 33% to 200% of his annual salary – depending on the position. (Gallup). For example, if a specialist with a monthly salary of €2,000 leaves, the costs of their departure and replacement can reach up to €16,000 – €48,000. These costs arise primarily in three areas:

1. Recruitment and Selection – advertisements, recruitment agencies, internal HR staff time. The average cost of recruitment is around 3,000 – 5,000 € for one position. (SHRM)
2. Adaptation and training A new employee needs 3–6 months to reach full productivity. During this period, they are less productive and require mentoring. These indirect costs are estimated up to 50% of the monthly salary during the adaptation phase. (Training Industry Report)
3. Stratification know-how and team motivation – fluctuation reduces morale, increases pressure on those remaining, and threatens project continuity. These are “hidden” costs that often go unnoticed, but in total, they can be the highest.

What works for our clients

As a staffing agency, we track trends and numbers daily. The most effective companies have one thing in common: they don't treat employees as a resource, but as partners. Here are 3 specific measures that have proven effective:

• Ongoing monitoring of satisfaction and well-being – Companies that actively use data from "pulse" surveys reduce employee turnover by up to 25%. (Qualtrics)
• Onboarding and adaptation programs set up – Structured onboarding increases the likelihood that a new employee will remain with the company after the first year by 82% (Glassdoor).
• Investing in leaders – A quality superior is the best prerequisite for long-term employee satisfaction. Leadership programs are an investment, not an expense.

Gen Z adaptation is a separate topic.

Generation Z—people born roughly between 1997 and 2012—already make up more than 25% of the global workforce, and this share is growing rapidly. However, their turnover rate is above average. According to a study Lever  until 65% of Gen Z employees are considering changing jobs within a year of starting. Why do they leave so quickly? And what can we do about it?

Top 5 reasons for Gen Z turnover

1. Meaningfulness of work
   Generation Z isn't just motivated by money. They seek meaning, social impact, and values they can identify with. 42 % of them would prefer to work for a lower salary if the job had a positive impact on society. During selection interviews, it's important to examine values, motivation, and attitudes. If they don't align with the employer's values, there's a high risk that the new employee will leave during the probationary period.
   Deloitte Global Gen Z & Millennial Survey
2. Poor management and lack of feedback
   Gen Z expects frequent feedback and active guidance. 60% of respondents said they left the company because of a poor supervisor and a lack of feedback. The old „annual review“ model simply doesn't work for this generation.
   (Source: Gallup, How Millennials Want to Work and Live – also relevant for Gen Z)
3. Unclear career path
   Career growth isn't just about promotions, but also about learning. Gen Z expects clear competency frameworks, mentoring, and opportunities to experiment. 71 % stated that they would stay longer if they had clearly defined conditions for advancement and access to professional development.
   (LinkedIn Workforce Learning Report)
4. Work-life (or life-work) balance and burnout
   Gen Z views mental health as a priority. Up to 48 % reported that they had already experienced burnout – often due to unreasonable expectations and insufficient support during their studies. Their departure is often an act of self-defense.
   Kinsey Health Institute
5. The desire for flexibility and a meaningful life
   For Gen Z, the 9-to-5 office is a thing of the past. More than 70% would prefer hybrid or remote work. If a company doesn’t offer this benefit, they’ll simply find another one.
   EY Work Reimagined Survey

What Works in Practice: HR Experience

At TRIGON Consulting, we see the biggest difference where a company:

• active engages Gen Z in team decision-making,
• has a system of regular feedback in place – e.g., 1:1s every 2 weeks,
• builds culture of education with micro-learning, project challenges, and the opportunity to try new tasks without fear of failure,
• has defined values and lives by these values – because Gen Z can quickly sense fakeness.

Fluctuation is very expensive. Fluctuation isn't just about someone leaving – it's about everything that leaves with them: knowledge, relationships, trust, time, and money. As a recruitment agency, we believe prevention is cheaper than cure. There is a solution – it starts with data, continues with strategy, and ends in practice.