How to reduce turnover in mid-sized companies

1. Define the problem before choosing a solution

Separate voluntary and involuntary departures. A company-initiated departure calls for a different interpretation from a resignation. Also examine role, department, tenure and period. Departures concentrated in the first few months may indicate recruitment or onboarding difficulties; for experienced professionals, investigate career opportunities, management and recognition.

A simple way to track the departure rate is to divide departures during the period by the average number of employees and multiply by 100. Document this definition: other turnover formulas exist, and comparing figures calculated differently can lead to incorrect conclusions. In small teams, also track absolute numbers.

2. Combine the numbers with people's experience

Talk to those who left and those who remain. Exit interviews help, but do not tell the whole story. Structured listening with the team can reveal unclear expectations, overload, relationship difficulties or a lack of prospects. Look for patterns without turning an isolated comment into a definitive diagnosis.

Compare these perceptions with onboarding, feedback practices and progression criteria. Pay deserves analysis, but attributing every departure to compensation can conceal leadership and work organization problems.

• Does the reality of everyday work match what was promised at hiring?
• Are priorities and responsibilities clear?
• Does the team receive feedback and have space to talk?
• Are growth criteria understood?

3. Choose a few actions and assign ownership

Select a priority problem and an action the company can implement. If departures are concentrated early on, structure onboarding with owners, role expectations and follow-up conversations. If the issue is a lack of prospects, review development criteria and how they are communicated.

Define an owner, deadline, target group and evidence of completion for each action. 'Improve communication' is an intention. 'Hold a monthly alignment conversation between the manager and team, documenting agreements' describes a verifiable practice.

4. Track retention without losing sight of work quality

Review progress across comparable groups and consider seasonality and business changes. A fall in departures alone does not demonstrate that the work environment has improved. Combine the indicator with listening, onboarding quality and action follow-up. The goal is to sustain healthy employment relationships aligned with strategy.

An initial routine might use the first month to organize data and listen to people, the next to implement priority actions and the third to review execution. This is a starting point, not a promise to reduce turnover within a fixed period.

When to seek consulting support

External support can help when data are scattered, reasons recur or HR needs to involve leaders in change. Strategic HR development organizes processes and responsibilities; culture work connects behaviors and management practices. Together, they help turn a retention concern into a work agenda.