When turnover increases, employee retention quickly becomes a challenge. What forms of turnover are there? What are the main causes? And how can the effects be measured and appropriate measures derived? We provide an overview.
Article in 1 minute
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Turnover is not always negative. A differentiated analysis is crucial in order to distinguish between functional departures and critical losses.
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The most important causes usually lie in everyday working life: lack of recognition, unsuitable leadership, lack of development prospects, too little flexibility, or lack of meaning.
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The consequences are manifold: high costs, loss of know-how, impact on customer relations, and declining quality.
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Turnover can be reduced primarily through listening, good leadership, a coherent corporate culture, and clear development prospects.
What is turnover?
Definition: Types of turnover
Turnover refers to personnel fluctuation in a company, i.e., the ratio between new hires and departures within a certain period of time. There are different types of turnover, each reflecting different situations.
Voluntary turnover: A person leaves the company of their own accord, for example because of a more attractive job, a higher salary, or a management culture that better suits their expectations.
Involuntary turnover: The departure is initiated by the company, for example at the end of a contract or due to termination. If such cases become frequent, this may indicate internal problems.
Functional turnover: Certain departures can relieve tension within the team and enable a new dynamic.
Dysfunctional turnover: This is when key personnel or employees who are difficult to replace leave the company. These departures can weaken the company in the long term.
How do you calculate a company's turnover rate?
The turnover rate is relatively easy to calculate:
[(Number of departures + number of new hires) ÷ 2] ÷ Number of employees at the beginning of the year
However, this figure alone does not tell the whole story. It should always be considered in context:
Is the turnover rate stable, rising, or falling?
What is the average in your industry or region?
What type of employees are leaving the company, and at what point in time?
Good to know: A high turnover rate is not automatically negative. The decisive factors are who is leaving, why they are leaving, and how the company deals with it.
What are the main causes of turnover?
Lack of recognition
Thanking, encouraging, or visibly acknowledging achievements: simple gestures like these strengthen motivation and employee loyalty—provided they are part of everyday life.
Weak or absent leadership
Authoritarian leadership, constant control, or a lack of feedback often have a deterrent effect today. Many employees—especially younger generations—expect managers who are accessible, listen, provide guidance, and make decisions together with the team.
Lack of development prospects
When employees feel that neither their tasks nor their prospects are developing, motivation declines. Routine sets in, commitment declines, and at some point, a change seems more attractive than staying.
Contradiction between aspiration and reality
A company talks about trust, balance, or inclusion, but everyday life looks different? Such discrepancies are quickly noticed, especially by younger generations who value credibility highly.
Lack of flexibility and autonomy
Flexible working hours, working from home, or the ability to organize tasks independently: such freedoms play an important role in the attractiveness of employers. If working hours, work locations, or processes are too rigidly regulated, many employees will look for more freedom.
Good to know: When companies promote flexibility, skills development, and career prospects, employees feel significantly more comfortable at work (Global Workplace Culture Report 2025).
Compensation that is no longer competitive
Employees don't always change jobs just for a higher salary. But when responsibilities grow, expectations rise, and the salary remains the same, a feeling of injustice quickly arises. If a more attractive offer then comes along, the decision to change jobs becomes much easier.
What are the consequences of turnover for companies?
Often underestimated costs
Every departure causes additional costs. According to ManPower, HR Voice, and Opensourcing, a bad hire can cost between 30,000 and 150,000 Swiss francs, depending on the position.
These costs consist of:
Direct costs: recruitment, interviews, training, possible severance payments, or lost revenue due to unfilled positions.
Indirect costs: temporary unrest in the team, additional stress for the remaining employees, impact on the employer brand, or declining motivation.
Declining service quality
Even with good training, a new person needs time to become fully productive. It often takes several months to reach the previous level of performance. During this phase, mistakes may occur more frequently, processes may take longer, or quality may fluctuate.
Loss of knowledge that is difficult to replace
When employees leave the company, valuable experience-based knowledge about working methods, expertise, or internal processes is also lost. This know-how is often only partially documented and cannot be replaced at short notice.
Impact on customer relationships
Customers build relationships with contact persons. If these change frequently, trust suffers. This can affect satisfaction, cooperation, and long-term loyalty.
Special features of turnover in Switzerland
A dynamic labor market
Switzerland has a dynamic labor market with low unemployment and many career opportunities, especially in cities and specialized industries. As a result, turnover is higher in some areas. Young professionals in particular change companies more frequently, not because of instability, but to advance their careers in a competitive environment.
Different work cultures
Attitudes toward work can vary depending on the language region. In German-speaking Switzerland, loyalty to employers tends to be stronger. In French-speaking Switzerland, career paths are often more flexible, with more professional reorientations or transitions. These differences should be taken into account when analyzing turnover and fluctuation.
Influence of border regions and wage differences
In regions close to national borders, such as around Geneva or Basel, competition from companies in France, Germany, or Italy also influences the stability of teams. Differences in taxes, living costs, and wages increase the mobility of skilled workers, especially those who are geographically flexible.
Stability as an important value in Swiss companies
In many Swiss companies, stability is considered an important value. If there are frequent departures, this is often interpreted as an indication of problems in leadership, organization, or corporate culture.
How can turnover be prevented and reduced?
Conduct exit interviews
Exit interviews help to understand why employees are leaving. They provide valuable insights into what is working well in the company and where there is room for improvement. At the same time, they show that feedback is taken seriously.
Invest in leadership skills
A manager who actively listens, gives regular feedback, and clearly communicates expectations can make a decisive contribution to employee retention. Good leadership strengthens trust, motivation, and commitment.
Make development prospects visible
Employees want to know how they can develop within the company. This does not necessarily mean rapid promotions, but clear opportunities for further development, for example through training, internal mobility, or cross-functional projects.
Show appreciation in everyday life
Honest feedback, a sincere “thank you,” or celebrating successes together: gestures like these in everyday life strengthen loyalty in the long term.
Actively nurturing the corporate culture
Many employees stay because of a good atmosphere, a meaningful project, a strong team, or managers who credibly exemplify their values. A lived and consistent corporate culture not only strengthens the employer brand, but also employee loyalty.
Retaining employees in the long term with the right HR processes: Attracting and retaining talent is only possible if HR processes are clearly structured and employees are well supported in their day-to-day work.
