Navigating Employee Retention and Healthy Turnover in a Modern Workforce

"In every work of genius, we recognize our own rejected thoughts; they come back to us with a certain alienated majesty." – Ralph Waldo Emerson?

Employee retention has become a very important focus for organizations.? This is particularly true in the wake of the global pandemic that reshaped the landscape of work. As I have observed in my professional journey, the complexity of retention strategies requires a delicate balance, where the costs of turnover must be understood not only as financial but also as cultural and operational. At the same time, a certain level of healthy turnover—or desirable turmoil—can provide unexpected benefits for organizations seeking to thrive in an unpredictable future.

The High Cost of Employee Turnover

Turnover is often viewed as a direct financial burden. And it is—particularly when considering the cost of recruitment, training, onboarding, and lost productivity. In my experience, these numbers can be startling. The Society for Human Resource Management (SHRM) estimates that the total cost of turnover is as much as 50% to 200% of the annual salary of the outgoing employee. These numbers reflect not only the tangible expenses but also the intangible ones. For instance, when an organization loses a key contributor, their institutional knowledge, customer relationships, and specialized skills leave as well, often leaving a void that can take months or even years to refill.

In my years of overseeing HR functions, I’ve noticed how turnover can also create disruptions in team dynamics. The loss of an employee, particularly one who plays a central role, can destabilize group cohesion, increase stress among remaining team members, and cause them to question their own longevity with the organization. Observe for yourself those times you have noticed employees leave in groups and clusters. You may also recall that loss of tacit knowledge that your organization had to rebuild in the wake of those vacancies.

While the costs are evident, it's worth noting that focusing solely on retention can sometimes obscure an organization's deeper, long-term needs.

Understanding the Benefits of Healthy Turmoil

I have always believed that not all turnover is detrimental. From a strategic HR perspective, there is value in what I call desirable turmoil. Some employee departures can inject fresh perspectives and ideas into an organization. In fact, I’ve seen first-hand how a well-managed exodus of underperforming or disengaged employees can reinvigorate the workforce. In our moder workplaces, where remote work, hybrid models, and evolving job expectations have rewritten the rules of engagement, the idea of holding on to every worker at any cost is outdated and ill-advised. Some workers are just going to be happier in moving on and we should not devalue others in our over pursuit of those wanting a change.

When carefully managed, a healthy level of turnover allows for adaptation and agility. Employees who leave may make space for those who are more aligned with the organization’s evolving goals and culture. Additionally, workers who remain gain a renewed sense of purpose, especially when they see their contributions valued and their concerns addressed. They also observe the organization's commitment to excellence by not tolerating mediocrity or disengagement.

In my experience, the key to navigating this healthy turmoil lies in transparency and communication. When organizations openly share their vision and create pathways for career advancement, employees are more likely to view change as an opportunity rather than a threat. Those who are not aligned with the direction of the company may choose to exit, and that’s not necessarily a negative outcome. Rather, it can be an indication that the organization is staying true to its mission and evolving in a way that necessitates a workforce capable of driving that change.

Retention Strategies in a Post-Pandemic Workforce

That said, retention should not be overlooked, and there are critical strategies to mitigate undesirable turnover, particularly in the post-pandemic landscape. Flexibility is now paramount, and one of the most significant shifts I have witnessed is the necessity for organizations to cater to a workforce that demands remote work options, increased work-life balance, and meaningful engagement. Retaining talent in today’s environment is not merely about compensation, although competitive salaries matter. It is also about aligning with the values of your workforce and providing a culture of inclusion, purpose, and recognition.

I’ve found that building a strong, connected culture even in a hybrid or remote environment is essential to retention. Regular check-ins, performance recognition, opportunities for professional development, and transparent communication about the organization's direction all contribute to an engaged workforce. Employees who feel seen and heard are less likely to look elsewhere for opportunities.

Further, employee retention efforts must be supported by leadership buy-in. As someone who has worked closely with executive teams, I know the importance of modeling the behavior you wish to see in your organization. Leaders must actively participate in retention initiatives, fostering a culture of accountability, mentorship, and support. Setting expectations for others that you are unwilling to live in your own professional life is just unfair and will show up in higher-than-expected turnover.

My Analysis

The post-pandemic workforce has been changing in the last few years. Retention strategies must reflect this new reality, balancing the financial and cultural costs of turnover with the benefits of healthy change. By recognizing that some employee departures can create opportunities for growth or change, organizations are better positioned to thrive in today’s competitive landscape. At the same time, by investing in employee development, creating flexible work environments, and fostering a culture of recognition and inclusion, organizations can ensure that the right employees stay longer.

In the end, successful retention isn’t about holding on to everybody—it’s about holding on to the right people.

"When we are no longer able to change a situation, we are challenged to change ourselves." – Viktor Frankl