High Engagement, Low Turnover

Posted by Stephanie Salguero on December 2, 2015

High Engagement, Low Turnover

A high level of turnover can have a detrimental effect on a company – not only is it time consuming and costly to constantly replace staff but productivity slumps as it can take a while for new employees to get fully up to speed. Companies need to be doing all they can to avoid this situation and one way to combat increased turnover levels is to ensure employee engagement and satisfaction is high.

It is therefore important for companies to closely monitor employee turnover. Keeping track year-on-year will make it easier to understand emerging trends and benchmark against industry averages.


High Turnover

High turnover is not only expensive but can also affect your employees negatively. Morale tends to be low, co-workers have difficulties establishing relationships with each other and your company’s reputation may suffer as a result. There is a good (and unusual!) infographic here explaining the effects of high turnover levels.

Companies who perform well and have a strong level of employer branding can expect a lower turnover rate. In fact, according to Hay, companies with high levels of engagement show turnover rates 40 percent lower than companies with low levels of engagement.


High Engagement

So how can companies increase employee engagement? It’s about removing the reasons for an employee to think about leaving and the most popular reason in today’s workforce is a lack of career progression.


  • Look after your employees by putting development plans in place. Your employees will in turn feel motivated to work towards their goals.

  • Offer benefits and a good working environment - It doesn’t have to cost your company a lot of money. Flexible hours and fresh fruit delivered at work go a long way.

  • Provide continuous training – your employees need to stay on top of their skills for your company to remain competitive but providing training requested by employees and not just closely related to their position will show that you care about their personal development too.

High Productivity

As to be expected, happy employees are naturally more productive. Therefore, in order to encourage productivity it is crucial employees understand how their job contributes to the success of the company. If they believe in the organisation, they will provide a better customer service and reflect a positive image outside of your organisation.

To learn more on employee engagement download our e-book on Retaining Your Top Talent.