19 Employee Retention Strategies with Scientific Evidence

Employee turnover, or leaving the company, has become a major problem for businesses.

When employees who have been carefully trained with time and effort leave, companies lose talented personnel with skills.

Moreover, when many people start leaving, the motivation of remaining employees will also decline.

High turnover rates also negatively impact company performance.

So, how can we prevent employee turnover?

In fact, preventing employee turnover requires attention to various factors.

Not only visible conditions such as salary and benefits, but also a wide range of elements including job satisfaction, interpersonal relationships, and work-life balance influence turnover.

By improving these factors one by one, companies can increase employee satisfaction and improve retention rates.

Reducing turnover is an essential initiative for corporate development.

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Impact of Employee Turnover on Companies

High Turnover Rates and Human Resource Development Issues

High employee turnover rates have become a major problem for companies.

Particularly when employees who have been developed with time and effort leave, the foundation of the company’s skill formation is lost.

Also, when many people start leaving, companies find it difficult to maintain motivation for human resource development.
In other words, high turnover rates cause the following problems:

• Loss of the foundation for corporate skill formation
• Decreased motivation for human resource development

Reducing turnover rates can be said to be an important challenge for sustainable corporate growth.
Companies need to advance initiatives to promote employee retention.
By doing so, they can develop human resources from a long-term perspective and enhance corporate competitiveness.

Decline in Corporate Performance Due to Turnover

Voluntary employee turnover also has a negative impact on corporate performance.
Companies with employees who have the intention of voluntary turnover tend to have lower performance.
The following reasons can be considered for this:

• Decreased productivity due to lower motivation
• Increased mistakes due to insufficient handovers
• Decreased morale among remaining employees

Therefore, companies can maintain and improve performance by preventing voluntary employee turnover.
Promoting employee retention also leads to improved corporate performance.
To reduce voluntary turnover, companies need to increase employee motivation and create a comfortable working environment.

Factors That Suppress Voluntary Employee Turnover

Characteristics of Employees Less Likely to Leave

Employees who are less likely to voluntarily leave have several characteristics.
For example, the following types of employees can be said to have a low likelihood of leaving:

• Working under indefinite employment contracts
• Older in age
• Having children
• Married
• Having a serious personality

In other words, stable employment conditions, family circumstances, and serious personality traits contribute to employee retention.
Companies can reduce turnover rates by actively recruiting and developing employees with these characteristics.
However, utilizing diverse talent is also important.
Rather than gathering only uniform personnel, it’s necessary to maintain balanced hiring practices.

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Fulfilling Job Content

When job content is fulfilling, it can suppress voluntary employee turnover.
Specifically, jobs with the following characteristics contribute to employee retention:

• Information is communicated officially
• Challenging and fulfilling
• Ability to participate in decision-making
• Well-established routines
• Large workload
• Clear roles
• Not caught between multiple conflicting roles

Such work can make employees feel a sense of purpose and increase their motivation.
It’s important for companies to provide jobs that allow employees to maximize their abilities and make appropriate job assignments.
By doing so, they can prevent voluntary employee turnover and increase retention rates.

Employment Stability

Stable employment becomes a major factor in suppressing voluntary employee turnover.
When employment is unstable, employees are forced to constantly consider changing jobs.
On the other hand, when employment is stable, employees can work with peace of mind.
Companies can enhance employment stability through the following initiatives:

• Increase hiring of full-time employees
• Promote conversion from fixed-term to permanent employment
• Carefully explain business conditions to employees

In this way, initiatives to enhance employment stability lead to employee retention.
Establishing an environment where employees can work with peace of mind is important for preventing voluntary turnover.
Employment stability also has a significant impact on employee motivation.
Under a stable employment environment, employees can work with high motivation.

Involvement in Decision-Making

Allowing employees to be involved in decision-making is one factor that suppresses voluntary turnover.
Employees who can participate in work-related decision-making have higher job motivation.
Additionally, feeling that their opinions are reflected increases their sense of belonging to the company.
To promote involvement in decision-making, companies can undertake the following initiatives.

• Create opportunities to actively listen to employee opinions
• Establish mechanisms to realize employee proposals
• Respect employee autonomy

In this way, promoting employee involvement in decision-making leads to the prevention of voluntary turnover.
It is important to create an environment where employees feel recognized as company members and feel that their opinions are reflected.
Involvement in decision-making also has the effect of increasing employee engagement.
By working with a sense of unity with the company, employees become able to demonstrate high performance.

High Wages

High wages are one of the major factors that suppress voluntary employee turnover.
With high wages, employees can achieve economic stability.
Additionally, feeling that their work is properly evaluated increases their motivation.
Companies can increase employee wages through the following initiatives.

• Payment of bonuses based on performance
• Implementation of regular salary increases
• Setting competitive wage levels compared to other companies in the same industry

In this way, providing high wages leads to employee retention.
Economic stability and proper evaluation of work have the effect of increasing employee motivation and preventing voluntary turnover.
However, it is also important to enhance the overall compensation package, including not only wages but also benefits and educational opportunities.
By providing diverse rewards along with wages, it is possible to increase employee satisfaction.

Role Clarity

Having clear employee roles is an important factor in suppressing voluntary turnover.
When roles are clear, employees can understand the scope and purpose of their work.
They can also realize how their work contributes to the team and company.
The following initiatives are effective for role clarification.

• Creation of job descriptions
• Regular goal setting and evaluation feedback
• Preparation and sharing of organizational charts

In this way, clarifying employee roles leads to the prevention of voluntary turnover.
Employees who understand the meaning and purpose of their work can work with high motivation.
Additionally, role clarity also contributes to reducing employee stress.
Ambiguous roles and unclear responsibilities become sources of stress for employees.
By clarifying roles, it is possible to reduce such stress.

Satisfaction with Company and Work

Employee satisfaction with the company and work becomes a major factor in suppressing voluntary turnover.
Highly satisfied employees have attachment to the company and tend to continue working long-term.
To increase satisfaction with the company and work, companies can undertake the following initiatives.

• Assignment of work that matches employee interests and abilities
• Improvement of workplace environment (enhancement of facilities, improvement of human relationships, etc.)
• Listen to employee opinions and requests

In this way, initiatives to increase satisfaction with the company and work lead to the prevention of voluntary turnover.
Highly satisfied employees have a strong sense of being company members and can work with high motivation.
Additionally, high satisfaction also has a positive impact on employee performance.
Employees who are satisfied with their work can demonstrate high productivity and contribute to improving company performance.

Attachment to the Company

Employee attachment to the company is one of the important factors in suppressing voluntary turnover.
Employees who feel attachment to the company take pride in being company members and seek to continue working long-term.
To increase attachment to the company, companies can undertake the following initiatives.

• Sharing company philosophy and vision
• Fostering unity through company events
• Implementation of educational training to support employee growth

In this way, initiatives to increase attachment to the company lead to the prevention of voluntary turnover.
Employees with attachment have high motivation to contribute to company development and can demonstrate high performance.
Additionally, attachment to the company also has the effect of increasing employee engagement.
By working with a sense of unity with the company, employees become more proactive in their work.
High attachment greatly contributes to employee retention and company development.

Stress Coping Ability

The ability of employees to appropriately cope with stress is one factor that suppresses voluntary turnover.
While work-related stress is unavoidable, employees who can handle it well are less likely to leave their jobs.
To enhance stress coping ability, companies can undertake the following initiatives.

• Implementation of stress management training
• Establishment of mental health consultation services
• Promotion of paid leave utilization

In this way, initiatives to enhance employees’ stress management capabilities lead to the prevention of voluntary turnover.
Employees who can appropriately cope with stress maintain both physical and mental health and can demonstrate high performance.
Furthermore, high stress management capabilities have a positive impact on workplace atmosphere.
Workplaces with employees who can effectively control stress become bright and positive overall.
Stress management capabilities contribute not only to individual health but also to the vitality of the entire organization.

Work Enthusiasm and Vitality

Employees having enthusiasm and vitality for their work is a major factor in suppressing voluntary turnover.
Employees who are passionate about their work and working energetically tend to have strong attachment to the company and continue working long-term.
To enhance work enthusiasm and vitality, companies can implement the following initiatives:

• Respecting employee autonomy and granting discretionary authority
• Goal setting that provides a sense of achievement
• Appropriate evaluation and feedback

In this way, initiatives to enhance employees’ work enthusiasm and vitality lead to the prevention of voluntary turnover.
Employees who are passionate about their work can maintain high motivation and produce excellent results.
Furthermore, work enthusiasm and vitality contribute to workplace revitalization.
Workplaces with employees working passionately become energetic and highly productive environments overall.
Work enthusiasm and vitality contribute not only to individual performance but also to the improvement of organizational performance as a whole.

Avoiding Mental Exhaustion

Avoiding employees’ mental exhaustion is one of the important factors in suppressing voluntary turnover.
Mentally exhausted employees experience decreased work motivation and are more likely to consider leaving.
To avoid mental exhaustion, companies can implement the following initiatives:

• Appropriate workload management
• Promotion of leave taking
• Enhancement of mental health care

In this way, initiatives to avoid employees’ mental exhaustion lead to the prevention of voluntary turnover.
Employees who can work in good physical and mental health can demonstrate high performance and contribute to the company long-term.
Furthermore, avoiding mental exhaustion has a positive impact on workplace atmosphere.
Workplaces with many employees who have low stress and psychological stability become calm and cooperative environments overall.
Employee mental health contributes not only to individual well-being but also to organizational stability as a whole.

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Positive Corporate Culture

A positive corporate culture is a major factor in suppressing employees’ voluntary turnover.
Employees working in a positive and vibrant atmosphere tend to develop attachment to the company and continue working long-term.
To foster a positive corporate culture, companies can implement the following initiatives:

• Recognizing and praising employees’ good behavior
• Promoting open communication
• Emphasizing teamwork and creating a cooperative environment

In this way, initiatives to foster a positive corporate culture lead to the prevention of voluntary turnover.
Employees working in a positive atmosphere can maintain high motivation and approach their work energetically.
Furthermore, a positive corporate culture has the effect of enhancing employee engagement.
Bright and vibrant workplace environments bring out employees’ proactivity toward work and increase their willingness to contribute to the company.
A positive corporate culture greatly contributes to employee retention and company development.

Support from the Company

Adequate support from the company is one of the important factors in suppressing employees’ voluntary turnover.
Employees who can receive support from the company in work and life aspects can work with peace of mind and develop attachment to the company.
To enhance support from the company, companies can implement the following initiatives:

• Implementation of educational training to support employee skill development
• Establishment of systems to support work-life balance
• Enhancement of employee benefits

In this way, initiatives to enhance support from the company lead to the prevention of voluntary turnover.
Employees who feel supported by the company can approach their work with peace of mind and demonstrate high performance.
Furthermore, company support has the effect of enhancing employee loyalty.
Employees develop strong organizational commitment toward companies that support their growth and life.
Generous support from the company promotes employee retention and contribution to the company.

Non-Monetary Rewards

Providing non-monetary rewards is a major factor in suppressing employees’ voluntary turnover.
Employees who can receive diverse rewards such as promotion opportunities and growth opportunities, not just monetary compensation, have higher satisfaction with the company.
To enhance non-monetary rewards, companies can implement the following initiatives:

• Providing career advancement opportunities
• Recognizing and honoring employee achievements
• Establishing internal job posting systems

In this way, initiatives to enhance non-monetary rewards lead to the prevention of voluntary turnover.
Employees who can receive diverse rewards develop increased motivation to build long-term careers at the company.
Furthermore, non-monetary rewards have the effect of enhancing employee motivation.
Environments where employees feel their growth and achievements are properly evaluated bring out their enthusiasm for work.
Enhancement of non-monetary rewards promotes employee engagement and contribution to the company.

Employee-Environment Fit

Improving the fit between employees and their environment is one of the important factors in preventing voluntary turnover.
Employees who can work in an environment that matches their values and abilities can approach their work with high motivation.
To improve employee-environment fit, companies can implement the following initiatives:

• Emphasize cultural fit during the hiring process
• Assign work that matches employees’ abilities and interests
• Allow flexible working arrangements

In this way, initiatives to improve employee-environment fit lead to the prevention of voluntary turnover.
Employees who can work in an environment that suits them experience less stress and have increased motivation to continue working long-term.
Additionally, employee-environment fit also contributes to improved performance.
Employees working in environments where they can leverage their strengths can demonstrate high productivity and generate excellent results.
Pursuing employee-environment fit greatly contributes to employee retention and company development.

Fostering a Sense of Fairness

Fostering employees’ sense of fairness is a major factor in preventing voluntary turnover.
Employees who feel they are treated fairly by the company develop higher trust in the organization and tend to continue working long-term.
To foster a sense of fairness, companies can implement the following initiatives:

• Clarify evaluation criteria and ensure transparency
• Listen to employees’ voices and provide feedback
• Address unfair treatment promptly

In this way, initiatives to foster employees’ sense of fairness lead to the prevention of voluntary turnover.
In workplace environments where fairness is maintained, employees can focus on their work with peace of mind.
Additionally, a high sense of fairness also has the effect of increasing employee engagement.
An environment where employees feel they are properly evaluated and respected deepens their attachment to the company.
Fostering a sense of fairness greatly contributes to employee retention and improved motivation.

Good Human Relationships

Having good human relationships in the workplace is one of the important factors in preventing employees’ voluntary turnover.
Employees who have good relationships with colleagues and supervisors find the workplace comfortable and tend to continue working long-term.
To build good human relationships, companies can implement the following initiatives:

• Increase communication opportunities
• Conduct team-building activities
• Provide training that promotes mutual understanding and respect

In this way, initiatives to build good human relationships lead to the prevention of voluntary turnover.
In workplaces with good human relationships, employees can work energetically while cooperating with each other.
Additionally, good human relationships also contribute to stress reduction.
In environments where employees can receive support from colleagues and supervisors, they become psychologically stable and more able to face work-related difficulties.
Maintaining good human relationships in the workplace greatly contributes to employee retention and improved well-being.

Respecting Implicit Expectations

Respecting employees’ implicit expectations is a major factor in preventing voluntary turnover.
When expectations held at the time of joining are betrayed, employees are more likely to consider leaving.
To respect implicit expectations, companies can implement the following initiatives:

• Listen to and align expectations at the time of joining
• Provide work and career paths that meet expectations
• When gaps arise with expectations, explain them carefully

In this way, initiatives to respect employees’ implicit expectations lead to the prevention of voluntary turnover.
Employees who feel their expectations are respected have high satisfaction with the company and are motivated to continue working long-term.
Additionally, respecting implicit expectations also contributes to building trust relationships with employees.
A sincere attitude toward employees’ expectations increases trust in the company and enables the building of better relationships.
Valuing employees’ implicit expectations greatly contributes to improving retention rates and promoting willingness to contribute to the company.

Achieving Work-Life Balance

Achieving employees’ work-life balance is one of the important factors in preventing voluntary turnover.
Employees who have a good balance between work and personal life experience less stress and tend to continue working long-term.
To achieve work-life balance, companies can implement the following initiatives:

• Introduce flexible working arrangements (flextime system, telework, etc.)
• Promote the use of paid leave
• Establish systems to support the balance between family and work

In this way, initiatives to achieve employees’ work-life balance lead to the prevention of voluntary turnover.
Employees who can work in environments where work and personal life are balanced are healthy both physically and mentally and can demonstrate high performance.
Additionally, achieving work-life balance also has the effect of increasing employee engagement.
Employees develop attachment and a sense of belonging to companies that value their lives.
Achieving work-life balance promotes employee retention and willingness to contribute to the company.

Absence of Alternative Employment

The absence of alternative employment opportunities for employees is a major factor in preventing voluntary turnover.
If there are no attractive alternative employers, employees tend to stay with their current company.
To reduce alternative employment options, companies can implement the following initiatives:

• Differentiate from competitors
• Increase presence within the industry
• Support employees’ skill development

In this way, efforts to reduce employees’ job options lead to preventing voluntary turnover.
When attractive job opportunities are limited, employees tend to build long-term careers at their current company.
The absence of job alternatives also has the effect of increasing employees’ stability-oriented mindset.
Employees who feel it’s difficult to move to other companies will try to steadily accumulate skills and experience at their current company.
Efforts to reduce job alternatives promote employee retention and contribution to the company.

Measures to Prevent Employee Turnover

Turnover Prevention: The Need for a Multi-faceted Approach

To prevent voluntary employee turnover, a multi-faceted approach is necessary.
Since turnover factors are diverse, the effectiveness becomes limited with just a single measure.
Companies are required to tackle turnover prevention from various angles, such as the following.

• Responses tailored to individual characteristics
• Improvement of job content and workplace environment
• Enhancement of interpersonal relationships
• Review of compensation systems
• Achievement of work-life balance

In this way, it is important to prevent employee turnover through a multi-faceted approach.
Each measure creates synergistic effects and can increase employee retention rates.
Additionally, a multi-faceted approach also has the effect of increasing employee engagement.
Efforts to enhance employee satisfaction from various angles increase attachment and willingness to contribute to the company.
Through a multi-faceted approach, it is possible to promote employee retention and contribution to the company.

Focus on Preventing Turnover of Talented Personnel

When implementing turnover prevention measures, it is important to particularly focus on preventing the turnover of talented personnel.
Preventing all employee turnover is not realistic, and companies should rather concentrate on retaining personnel who are important to the company.
To prevent turnover of talented personnel, companies can undertake the following initiatives.

• Identify key personnel and provide individual follow-up
• Provide opportunities for skill development and promotion
• Provide appropriate compensation and evaluation

In this way, initiatives focused on preventing turnover of talented personnel lead to maintaining the company’s competitiveness.
When employees with high skills and experience continue to work long-term, the company’s performance can be enhanced.
Additionally, retention of talented personnel also has a positive impact on other employees’ motivation.
Seeing talented personnel in action increases other employees’ self-growth and willingness to contribute to the company.
Focusing on preventing turnover of talented personnel greatly contributes to improving the vitality and productivity of the entire organization.

Important Considerations Regarding Employee Turnover

There’s No Need to Prevent All Turnover

While efforts to prevent employee turnover are important, there’s no need to prevent all turnover.
While focusing on preventing turnover of personnel important to the company, trying to prevent all employee turnover is not realistic.
Rather, in the following cases, turnover should be considered unavoidable.

• Employees who are not compatible with the company
• Employees with low motivation for self-growth
• Employees who cannot relate to the company’s policies

In this way, it is important to understand that there’s no need to prevent all turnover.
Excessive fear of turnover leading to unreasonable retention efforts that ignore employee aptitude may actually harm organizational vitality.
It is required to consider responses to turnover with flexible thinking while focusing on personnel important to the company.
Rather than preventing all turnover, focusing efforts on retaining personnel who contribute to the company’s development leads to long-term organizational growth.

Turnover Can Sometimes Bring Positive Results

Employee turnover does not necessarily bring only negative results.
Companies need to understand that there are cases where turnover leads to positive changes.
For example, in the following cases, turnover can have a good impact on employees.

• Being able to demonstrate abilities in a suitable environment
• Improvement in work-life balance
• Obtaining career advancement opportunities

In this way, turnover can sometimes bring positive changes to employees’ careers and lives.
It is important not to view departing employees uniformly negatively, but to respond flexibly according to individual cases.
Additionally, when turnover occurs, organizational issues may come to light.
By analyzing the reasons for turnover and connecting them to improvements, a more comfortable work environment can be created.
Looking at the positive aspects that turnover brings and gaining constructive learning leads to organizational growth and development.

Summary of Turnover Prevention

To prevent employee turnover, it is necessary to look not only at visible conditions such as salary and benefits, but also at various factors such as job satisfaction, interpersonal relationships, and work-life balance.

By companies improving these factors one by one, employee satisfaction can be increased and retention rates can be improved.

However, there is no need to prevent all turnover.

Turnover of employees who are not compatible with the company or employees with low motivation for self-growth may sometimes be unavoidable.

Rather, it is important to focus on retaining personnel who are important to the company.

Additionally, turnover can sometimes lead to positive changes.

By analyzing the reasons for turnover and connecting them to improvements, a more comfortable work environment can be created. The problem of turnover cannot be solved overnight.

However, listening to employees’ voices and working step by step on improvements leads to corporate development.

*This article references the following book.