When great employees leave: rethinking retention for the modern workforce

September 2025 | SPOTLIGHT | EMPLOYMENT & HUMAN RESOURCES

Financier Worldwide Magazine

September 2025 Issue

In today’s knowledge-driven and talent-constrained economy, the challenge is no longer just reducing turnover. What matters most is understanding why experienced, capable or high-potential employees choose to leave, and acting on those insights.

Managing attrition is a leadership priority. It is essential to business continuity, resilience and long-term performance. When great talent leaves, the loss goes beyond productivity. It erodes a company’s competitive edge.

According to TCB Benchmarking, companies in the S&P Europe 350 report a median employee turnover of 7 percent. But in nearly a quarter of sectors, rates exceed 10 percent. This suggests that while some industries face manageable churn, others struggle to retain skilled talent. To address this, organisations must move past legacy retention tactics. Reactive, ‘one size fits all’ approaches must give way to predictive, personalised strategies grounded in data.

Why people leave, and why they do not

Despite continued investment in salaries, flexibility and wellbeing, many employees still choose to move on. And the underlying reasons rarely show up in standard metrics. Talent leaders point to the importance of distinguishing between voluntary and non-controllable exit such as relocation and retirement.

Voluntary attrition often stems from deeper issues: feeling undervalued, weak team culture, limited growth opportunities or lack of alignment with the company’s mission. Our recent survey of over 1700 employees at global companies reveals that even when workers are concerned about the cost of living, pay alone is not enough to retain them. When asked about their intention to switch jobs, compensation did not emerge as a primary driver. Instead, those planning to change roles in the next six months prioritised joining organisations with appealing work cultures and strong opportunities for professional growth.

The push factors – the reasons for leaving – were due to dissatisfaction with promotion policies, reinforcing evidence that career growth is a critical retention driver. Another push factor was feeling their job was not sufficiently interesting. Those who intended to stay indicated they had interesting work and high-quality leaders.

Growing numbers of companies are creating more opportunities for employees to move into new roles, including secondments that stretch them through creating an internal ‘talent marketplace’. Often driven by artificial intelligence (AI), these platforms alert employees to internal opportunities that align with their interests and skills. For example, a global industrial technology company that introduced an internal talent marketplace quickly saw the benefits. Voluntary turnover for career development reasons decreased by 10 percent, with a concomitant increase in internal applicants and internal hiring.

Another of our recent reports shows that organisations are starting to look more closely at these departures. Of particular concern are early exits. Employees who leave within their first year often do so before their contribution offsets the cost of hiring and onboarding. At the other end of the spectrum, late-career departures risk the loss of institutional memory and leadership continuity.

Predicting retention: a shift toward data-driven insight

One of the most promising developments in retention strategy is the use of predictive analytics. Instead of waiting for resignation letters, organisations are starting to spot early warning signs. They are using data from engagement surveys, performance reviews and internal mobility patterns to identify flight risks.

One global retailer now creates monthly attrition risk reports. These combine engagement scores, manager feedback and survey responses. HR and line leaders then use this insight to take targeted, local action. The company’s people analytics team also asks leaders to tell them about these actions, so they can monitor attrition to gauge which interventions are most effective and could help inform enterprise-wide retention strategies.

A UK-based retail bank moved from relying on exit surveys to real-time analysis of retention drivers. As a result, it improved retention among at-risk groups.

Another financial services firm embedded open-ended questions into its engagement survey. One asked, “Are you thinking of leaving in the next few months?” AI analysis of the answers revealed key risk factors by region, job level and demographic. This turned a basic tool into a strategic forecast.

Still, caution is needed. As one executive noted: “Data can be helpful, but also misleading. The human component is essential.” Surveys tell us what. Conversations reveal why.

Rehumanising retention

Retention is not just a metric; it is a relationship. More organisations are returning to personal human approaches. Stay interviews are one example. These structured conversations help leaders understand what motivates someone to stay or consider leaving. When done well, they reveal issues that surveys may miss. Similarly, exit interviews are evolving too. Leading firms now combine anonymous digital surveys with follow-up conversations. AI helps spot trends, but the real value lies in what happens next. Are the findings acted on? Are managers supported to make changes? Retention is not about preventing exits. It is about building the kind of workplace people want to stay in.

Beyond goodbye: talent as a lifelong relationship

Even with strong retention strategies, some employees will leave. That does not mean the relationship has to end. Many companies now invest in alumni networks. They see former employees as future collaborators, clients, ambassadors or even returnees. So-called ‘boomerang’ hires are becoming more common. Some firms reach out six months after departure to gauge interest and gather feedback. This marks a shift. Employees are no longer viewed as fixed-term assets, but as part of a broader talent ecosystem.

The role of managers in shaping retention

Frontline managers play a pivotal role in shaping the everyday experience of employees. Often, they matter more than policies or corporate programmes. Research consistently shows that employees do not leave companies so much as they leave managers. The quality of leadership and communication at the team level significantly influences retention outcomes. Managers are best placed to spot early signs of disengagement and offer tailored support. But many lack the training or confidence to have open, forward-looking career conversations. However, this is changing. Some companies are embedding retention into leadership key performance indicators. Others are updating leadership development to include empathy, coaching and psychological safety, areas that directly impact employee decisions to stay or go.

A sustainable retention mindset

Rethinking retention for today’s workforce means moving beyond lagging indicators and embracing leading signals. It means moving from resignation response to relational foresight. And above all, it demands that leaders listen, not just to engagement metrics, but to values, emotions and emerging expectations.

When great employees leave, it should trigger not only concern, but curiosity. What was missing? What might have made the difference? And how do we create an environment worth returning to?

Retention is not merely about avoiding cost. It is about protecting purpose, continuity and human capital. In an era marked by transformation, the organisations that thrive will not be those with the lowest attrition rates, but those with the clearest understanding of what it truly costs to lose the people they cannot afford to lose.

Marion Devine is a principal researcher and Anuj Saush is the head of advisory at The Conference Board. Ms Devine can be contacted on +32 (2) 675 5405 or by email: mdevine@tcb.org. Mr Saush can be contacted on +32 (2) 675 5405 or by email: asaush@tcb.org.

Marion Devine and Anuj Saush

The Conference Board