Why is European Employee Turnover Rising? 5 Measures Your Business Can Take to Keep Staff Happy. Employee turnover is at an all-time high. Here's what employers can do to increase retention rates.

Employee turnover is on the rise at businesses all over Europe. In the UK and Germany, for example, nearly one in four employees say they are considering leaving their jobs. That's huge.

Over the last few years, employee attitudes toward their careers have shifted significantly and businesses need to adapt their approach if they want to maintain a happy workforce. Losing an employee not only leaves you saying goodbye to a valued member of staff, but recruiting a replacement can cost your business as much as twice their annual salary.

Here are some of the main reasons why employee turnover is on the rise as well as measures you can take to keep your employees happy.

The rise of employee turnover in 2025

Employee turnover is becoming a never-ending battle for businesses. Over recent years, the job landscape has changed drastically and this has had a knock-on effect on the number of people who are reconsidering their career prospects.

There has been a notable shift in employee expectations in 2025 as people become more aware of their mental wellbeing at work. As people become more in tune with their bodies and the quality of life they strive for, this can leave them reconsidering their job options.

There has also been a growing demand for remote or hybrid work models, allowing people to enjoy a more flexible setup. For businesses that are unwilling to adapt to the modern landscape, this can result in a notable increase in employee turnover as employees look elsewhere for a more suitable opportunity.

Ways to maintain a happy workforce

Having a happy workforce not only keeps employee turnover rates to a minimum, but is bound to improve the productivity and motivation of employees at work. Although employee retention rates can vary depending on the industry, a good benchmark to aim for is around 90%.

To improve the turnover of employees within your business, here are five changes that can be made to keep staff happier in their roles.

1. Keep an eye on current market salaries

Unsurprisingly, one of the biggest drivers for an employee leaving their role is salary. It is responsible for 25% of job leavers. Even if an employee is happy within their role, not getting the pay they feel their skillset deserves can leave them feeling like they have no other choice than to leave.

Your HR department should be keeping an eye on industry benchmarks, checking what salaries other companies are advertising when hiring for jobs of a similar nature.

Ensuring that your employees are all fairly paid for their roles will reduce the likelihood of them searching for a better opportunity elsewhere. Consider offering pay raises when an employee takes on more duties or increasing employee salaries by a percentage after every year of service.

2. Offer incentives that reward hard work

Getting recognition for the work we do goes a long way. It is human nature to feel unmotivated if you are continually getting pushed to do more work and hearing negatives without getting any acknowledgement of all of the positives.

As a business owner, creating a collaborative work environment that rewards good work can make all the difference. Even small acknowledgements of a job well done or an email to thank employees for their hard work on a project can create a sense of achievement and motivation to keep it up.

To take this one step further and increase employee engagement, offer incentives that allow your team to be rewarded for good performance. Whether that be an annual bonus if goals are met, an employee of the month cash reward, or even a bonus day off work, these incentives can unleash more ambition among your team.

3. Hire candidates who fit the company culture

When you are recruiting new employees, it can be easy to get carried away and want to fill the positions as soon as possible. Even if a candidate has a great set of skills, it is important to consider how their personality is likely to fit in with the existing team. Clashes among employees can create growing tensions within the workplace, having a big impact on the overall working environment.

Many employees feel they cannot continue working at a company if they do not get along with their manager or immediate team. Whether this is due to poor communication, different working styles, or clashes in personality, this can also damage the productivity of the wider team and result in a lower quality of work.

4. Invest in professional development opportunities

Ambitious employees are continually on the hunt for new growth opportunities that can help them expand their skills and reach their professional goals. If they feel like they've reached a dead end within their role, it means they are likely to look elsewhere for their next opportunity.

Offering your employees the chance to work on their professional development shows a willingness to invest in employees and support their goals. Giving them the chance to go on courses to learn a new skill or work towards a certification will not only keep them happier in their role, but can also result in an ROI as the new skills are put into practice at work.

5. Facilitate a good work-life balance

When looking for a job, 67% of people claim work-life balance is a key factor. If your employees are feeling overworked and stressed, it could be a big contributor to your high employee turnover rate.

Businesses need to ensure they are taking the wellbeing of their employees into consideration. Ensuring they have a manageable workload and a good support system in place will help manage stress.

As well as this, offering flexibility when it comes to your employees' working schedules will help them achieve an improved work-life balance. Nowadays, hybrid working models are increasingly in demand, allowing employees to cut out their commute and achieve a more flexible lifestyle.

Avoiding high turnover rates in the long term

The current employee turnover rates can feel like a worrying prospect for business owners, making them wonder if this is going to become the new norm.

Although employee resignations can make you worry about having to go through the recruitment process time after time and deal with an understaffed workforce, it is time to ask yourself why your turnover rate has increased.

Adapting to the needs of the modern employee is essential – gone are the days of full-time office work and late-night shifts to meet tight deadlines. Instead, introducing new measures that help employees feel supported at work and in their careers can make a world of difference.