Why Some Businesses Experience High Staff Turnover & What to Do About It
Understanding Why Staff Leave
At a recent webinar where I was a guest speaker, I was asked a series of insightful questions about why some organisations experience persistently high staff turnover, and what can be done to reduce it.
The conversation revealed some clear patterns across sectors, age profiles, and working environments that can help employers in Ireland and beyond understand what’s really driving people to leave.
1. Are There Common Traits Among Businesses with High Staff Turnover?
Yes, there are clear patterns across industries.
Sectors such as hospitality (50%), retail (33%), contact centres (30%), and care services (30%) tend to experience the highest turnover rates.
These industries often struggle with challenges such as:
Low or inconsistent pay
Irregular or unpredictable working hours
Limited opportunities for development or career progression
High customer-facing pressure
However, it’s not limited to these industries. Even technology and creative sectors typically viewed as desirable report high churn due to burnout, poor leadership, and unclear expectations.
Average turnover rates by sector:
Technology – 60%
Hospitality – 50%+
Retail/Wholesale – 33%
Contact Centres – 30%
Care Services – 30%
Manufacturing – 28.6%
Banking/Finance – 19.8%
2. What’s the Real Cost of Turnover?
The financial impact of staff turnover is often underestimated. Replacing an employee typically costs between 20% and 200% of their annual salary, depending on the role, seniority, and onboarding quality.
Smaller companies feel this most acutely losing one employee can have a significant effect on productivity, morale, and customer relationships.
3. Does Age or Generation Influence Turnover?
Younger workers, particularly Gen Z are more likely to leave roles quickly if they don’t see a fit between their own values and the organisation’s.
But age alone isn’t the issue. The challenge for many employers is managing intergenerational differences in expectations, communication styles, and motivation.
Organisations that adapt their leadership and engagement strategies to bridge generational gaps tend to see far better retention outcomes.
4. How Much Does the Working Environment Matter?
A great deal. Toxic, chaotic, or unclear environments are one of the fastest drivers of employee turnover.
High turnover is often rooted in:
Poor leadership or lack of direction
Weak communication
Limited recognition or appreciation
Lack of psychological safety
Simply put, culture is either a magnet or a repellent — there’s no neutral ground.
Businesses that invest in clarity, consistency, and communication see measurable improvements in retention, engagement, and overall performance.
5. Does Hybrid or Office-Based Work Affect Retention?
Absolutely. Rigid “office-only” models are increasingly unpopular, particularly when employees feel they’ve earned flexibility through performance and trust.
That said, hybrid working can fail too if it’s not led with intention.
The most successful models are those that balance:
Clear expectations
Equitable policies
A culture of trust and accountability
When hybrid working is well-designed and well-led, it significantly boosts retention and engagement.
Final Thoughts
Whether you’re in hospitality, tech, or professional services, the key drivers of turnover are surprisingly consistent:
Weak leadership and culture
Lack of flexibility
Poor communication and recognition
Limited career pathways
Reducing turnover isn’t about perks or pay alone. It’s about creating a workplace where people feel valued, trusted, and supported.
👇 Your Turn
What do you believe is the biggest driver of staff turnover in your organisation — pay, systems, leadership, or culture?
We’d love to hear your perspective.
If you’d like help identifying and addressing the root causes of turnover in your business, get in touch with Leadership & HR Solutions for tailored retention and engagement strategies.
📩 Contact us