What is considered a high employee turnover rate?

A high turnover rate means an unexpected number of employees leaving your company over a given period. Some employers compare their current turnover rate to past data at the company. Others review industry-wide figures to assess whether their rates exceed typical standards. Some organizations may find a turnover above 20% or 30% indicates a workplace issue, but acceptable rates generally differ across industries.

For example, a small company may consider turnover high if it loses seven out of 30 employees in a year, especially if these separations affect project deadlines or daily productivity.

Larger companies might have a higher number of departures before noticing major challenges. You can also focus on specific patterns, such as how many new hires leave within six months or how many top performers find other employment within a year.

5 common signs and effects of high turnover

High turnover can appear gradually or increase after changes in your company. You can look for these five signs and their potential impact:

1. Frequent exits with short tenures: Losing multiple staff members after a few months of employment may signal mismatched job expectations, unclear employee onboarding or limited advancement paths. Frequent turnover can often bring extra costs for interviews, job postings, background checks and training.
2. Increased spending on hiring and onboarding: Advertising, screening and orientation can take time and money. Repeating these steps due to frequent departures may reduce funds for other areas like new technology, professional development or workplace amenities.
3. Lower morale among remaining staff: Continuously team changes can make employees uneasy about their job security. Morale can also decrease if remaining employees manage additional responsibilities until new hires settle in.
4. Employer brand challenges: Frequent team changes can raise questions for job seekers about workplace stability, potentially making it difficult to attract talent.

Causes of high turnover

A high employee turnover rate typically reflects issues employers can address by identifying patterns and focusing on solutions. Some possible causes include:

• Below-market pay: Workers compare their salaries and benefits to those offered by other employers. If your total compensation is significantly lower, employees may look for better-paying roles. Consider researching the competitive pay for your open role and industry to keep employees satisfied.
• Limited career advancement: Professionals often look for clear paths to higher-level positions or opportunities to grow their skills. When you outline possible promotions or career development, employees may be less likely to seek a role elsewhere.
• Unclear role expectations: Some new hires realize daily tasks don’t match the job description shared during the interview process. Others may discover limited variety or a different workload than expected. Refining your job descriptions to accurately reflect day-to-day responsibilities and expectations can help you hire and retain talent.
• Manager support: Supervisors who rarely offer feedback, assign overwhelming tasks or micromanage in the workplace can contribute to employee dissatisfaction. Supportive managers who communicate clearly tend to improve employee well-being and lower turnover.
• Workplace culture mismatches: Companies that don’t encourage collaboration, celebrate achievements or support inclusion can struggle with high turnover. Many employees prefer environments that emphasize transparent communication, effective teamwork and fair recognition.

Measuring high turnover

Proper tracking can help evaluate whether your company’s turnover is higher than usual. You might use these methods:

• Basic percentage calculation: Count how many people left in a year. Divide by the average number of employees in that period. Multiply by 100 to get a percentage. If this figure surpasses industry norms or your goals, your company might have a high turnover.
• Voluntary vs. involuntary departures: A high voluntary exit rate may point to dissatisfaction or better external options. Involuntary exits often reflect performance issues or hiring mismatches.
• First-year turnover: Track how many new hires leave within their first 12 months. A high number may suggest you need to refine your training, onboarding or role descriptions.
• Department-based analysis: Some teams might see more departures if they have specialized tasks, unusual schedules or unique leadership needs. Investigating these departments more closely can reveal specific issues.

8 ways to improve high staff turnover rate

Reducing turnover often involves multiple steps. You can tailor solutions to specific departments or roles:

1. Enhance pay and benefits: Consider aligning wages and perks with market expectations. If you’re unable to offer large salary increases, consider flexible schedules, better health coverage, childcare assistance, tuition reimbursement or other benefits to help employees feel supported.
2. Create growth pathways: Employees who see future opportunities within the organization are typically more likely to remain at your company. Provide skill-building programs and internal promotions. Encourage managers to discuss long-term career goals during performance reviews.
3. Refine job previews and onboarding: A job preview gives candidates accurate descriptions of daily tasks, including key responsibilities, workflows and expectations. This can help candidates make informed decisions and reduce the risk of early turnover due to mismatched expectations. During onboarding, consider assigning mentors for support to avoid role misunderstandings and to foster a sense of belonging.
4. Promote transparency: Encourage honest discussions about workload, recognition and job satisfaction. Regular check-ins can help managers solve problems before employees begin considering other opportunities. Transparent leadership also boosts trust by making expectations clear, involving employees in decision-making when appropriate and showing consistency between words and actions.
5. Focus on positive culture and inclusion: Recognize employee achievements in ways that match individual preference, whether through a private acknowledgement or team meeting. Consider offering inclusion and belonging training so team members feel comfortable and respected, and highlight shared accomplishments to foster unity.
6. Offer flexible work structures: Remote, hybrid or flexible hours can help relieve stress for parents, caregivers, students and employees with mental health conditions. Flexible work arrangements can also lead to better work-life balance and encourage employee retention.
7. Develop strong managers: Leaders who can set realistic goals and provide constructive feedback may notice lower turnover in their teams. Comprehensive manager training can enhance coaching, delegation and conflict resolution skills.
8. Use stay interviews and surveys: Conducting stay interviews or anonymous surveys can provide valuable insights into employee satisfaction. Feedback may reveal challenges or motivations that affect retention. Following up on these insights can help you address concerns before they lead to resignations.

Industry-specific turnover challenges

Certain industries generally face higher turnover due to scheduling, job stress or job market competition. Examples can include:

• Retail: Many positions are part-time or have fluctuating hours, so workers may look for another workplace with steadier schedules or better pay. Cross-training staff and offering internal promotions can build loyalty.
• Technology: High turnover in tech is often driven by market volatility, interal reorganizations, rapid innovation cycles and shifting leadership priorities. Developers, data scientists and other specialized professionals may also receive multiple job offers. Staying current with software tools, providing clear career growth paths and offering competitive compensation can help retain top talent in this fast-moving industry.
• Hospitality: Because hotels, restaurants and event venues often face seasonal shifts, employees might leave once busy periods end. Retention bonuses or team-building programs can help motivate workers to stay long term.
• Healthcare: Nurses, medical assistants, caregivers and home health providers often work extended shifts and handle emotionally draining tasks. Mental health support through employee assistance programs (EAPs), flexible scheduling and pathways to advanced roles may reduce burnout and turnover.