How can HR maintain a low turnover rate?
More people are being hired, and more jobs are being offered, while fewer employees are leaving their positions across the world since December, according to a report.
BambooHR’s monthly Workforce Insights revealed that global turnover from December 2024 to January 2025 declined by 25%.
Hiring and job openings, on the other hand, saw a significant month-over-month increase of 42% and 45%, respectively.
"In January 2025, there was a notable increase in both hiring and job openings globally, with turnover dropping to levels last seen in 2020," the report read.
Employee turnover measures the number of employees who leave an organisation during a specific time period, according to BambooHR.
They include employees who leave their position voluntarily, or those who were involuntarily separated through layoffs, reduction in force, or termination.
"High turnover means that many people are leaving the company, while low turnover means that people tend to stay in their jobs longer," BambooHR said.
"While low employee turnover is the goal for most organisations, what determines low vs. high turnover is how actual turnover compares to a typical or expected rate, which can change depending on the industry, job type, company size, region, and more—and that rate is very rarely zero."
According to Qualtrics, there are several reasons why an organisation can experience an "unwanted turnover rate." They are:
Bad hiring practices
Low engagement
Employee burnout
Poor work-life balance and compensation
Lack of employee purpose
Low organisational commitment
Little feedback or recognition
Boredom
No opportunity for growth or development
Toxic culture and bad managers
BambooHR stressed that employee turnover is "natural" for organisations, but a high turnover can be "challenging" for companies due to its potential costs.
Gallup highlighted in 2019 that a "conservative estimate" for replacing an employee can range from half to twice the individual's annual salary.
More than the financial cost, employee turnover also breaks down team morale, loses customer relationships, as well as threatens the company's brand.
According to Indeed, there is also the risk of burnout, as the previous employee's work must still be done.
"This may add additional responsibilities to other team members, so it may be beneficial to review workloads and distribute them evenly to avoid having employees work longer hours or risk burning out," it said.
With employee turnover on a decline, it will be important for organisations to keep its figures to a healthy minimum.
Megan Rose, an expert on talent acquisition and development, said managing turnover will require a "proactive approach." She offered the following suggestions:
Invest in employee development
Foster a positive work environment
Conduct regular check-ins
Improve onboarding and training
"Remember, turnover isn't just about numbers—it's about people. When employees leave, they take their knowledge, skills, and experience with them," Rose said on LinkedIn. "By focusing on retention and creating a positive work environment, you can reduce turnover and build a stronger, more resilient organisation."
