Regrettable Attrition: How to Reduce Unnecessary Turnover

Every manager has that one employee they couldn’t live without. They’re always the first to volunteer for projects. They offer the most out-of-the-box ideas during meetings. They reach OKRs and keep looking for more. Everything feels like it’s going great, until suddenly their 2 week notice grinds your team to a halt.  

While employee turnover is a common occurrence in most organizations, not all turnover is created equal. Regrettable attrition, sometimes known as regretted turnover, is a preventable type of employee departure that employers wish they could avoid. 

The tools to prevent regrettable attrition are often within their grasp. Organizational changes, hiring practices, corporate culture, and more can help you keep star employees from burning out and moving on. So, how do we define regrettable attrition, what are the implications, and what can we do to reduce it internally? Let’s find out.

What is Regrettable Attrition?

Regrettable attrition refers to the departure of valuable employees that could have been avoided, typically due to reasons within the employer’s control. This type of employee departure is particularly painful for organizations because it involves the loss of employees who are highly skilled, productive, and have a positive impact on the company culture. 

In contrast, non-regrettable attrition includes employees leaving due to factors beyond the control of the employer, such as personal reasons or career advancement opportunities. While still emotional for team members, non-regrettable turnover is more understandable because it’s typically due to a life change, like a new baby or a career shift.

Regrettable attrition is a critical concern for HR leaders and organizations because it not only affects the bottom line but also impacts employee morale, team dynamics, and the overall company culture. When high performing employees leave, their absence is felt throughout the organization. They can leave projects behind schedule, create further disconnects between teams, or trigger a wave of departures.

Regrettable Attrition vs Turnover

While turnover and attrition are often used interchangeably, they have subtle differences. If you’re responsible for setting benchmarks for your team or wondering how to classify an employee departure, it’s helpful to know the distinctions. 

Turnover is a broad term that encompasses any employee departure, whether voluntary or involuntary, while attrition specifically refers to the natural reduction in the workforce due to resignations or retirements. Organizations typically understand that some employee turnover occurs when doing business, so they task HR with preparing for non-regrettable departures. 

Regrettable attrition, on the other hand, is a subset of turnover that focuses on the departure of employees whose loss significantly impacts the organization in a negative way. It’s typically caused by cultural factors within an org and is a solid barometer for employee satisfaction as a whole.

These elements are often tied to working arrangements and administration. When employees feel stressed or out of step with the larger org, they’re much more likely to leave. According to our 2024 Employee Happiness in the US report, the 3 biggest challenges with working remote or hybrid, 78% of employees said sense of belonging, 68% said communication, and 40% said burnout. All of these can culminate in a high turnover rate and employee attrition.

Why You Should be Concerned with Regrettable Attrition

Employee turnover, especially regrettable attrition, can pose significant challenges for organizations. If left unaddressed, it can cause serious monetary and performance issues—especially for growing enterprises. 

High rates of regrettable attrition can lead to: 

Decreased productivity 

When employees leave, their roles take time to fill. In the meantime, their tasks are left uncompleted or pushed onto overburdened team members. 

Increased recruitment costs 

It takes valuable HR bandwidth to find a new employee. According to SHRM, “The cost of replacing an individual employee can range from 3 to 4 times their salary depending on the role.”

Disruptions in the company culture 

Many employees have high visibility within an org. Regrettable attrition leaves visible gaps in celebrations and appreciation cultures.

Increased training costs 

It takes time and money to get a new employee up to speed. This time comes out of the HR, managerial, and departmental budget.

Lowered employee morale 

Team members often forge close bonds with one another in the workplace. When a close colleague leaves, it damages everyone’s morale. 

Decreased customer satisfaction

If team members are unhappy, they’ll typically have less favorable interactions with customers and prospective clients. This is especially true in client facing roles like customer success, sales, or service.

When organizations address employee attrition proactively, they’re more likely to stay on budget, reach corporate goals, and attract and retain top tier talent. This gives them the competitive edge that they need to succeed in the market.

Warning Signs of Regrettable Attrition

Identifying the signs of regrettable attrition is crucial for implementing effective retention strategies. Human resources, C-suite leadership, and people managers need to be aware in order to get ahead of problems that could derail their goals. 

Some common warning signs of regrettable attrition include: 

Declining employee satisfaction

Workers with low levels of employee happiness are likely to leave. This could be evidenced in employee happiness surveys or seen subtly through actions or comments. 

Increased absenteeism

When employees frequently call out, they are typically disconnected from the org’s goals and values. This could be as minor as dropping out of meetings or as large as requesting large chunks of the week off last minute.

More grievances and complaints

Increases in issues, either during one-on-ones, department meetings, or all-hands calls can be a steady red flag for regrettable attrition to come. It shows an undercurrent of frustration or distrust directed at the organizations for cultural issues. 

Shifts in the work-life balance

When employees are overworking, it can also be a predictor of regrettable turnover to come. Employees putting in long hours are more likely to burnout and leave. 

Less interest in growth and development

Planning for the future indicates that they’re invested in the organization. If they’re just coasting through their workday, they’re likely disengaged and not enjoying their tasks.

Increases in voluntary turnover

When voluntary turnover levels increase, it can point to larger systemic problems. In some cases, the border line between voluntary and regrettable can be thin. 

To address these warning signs, HR professionals and leaders should conduct regular employee engagement surveys, stay attuned to feedback, and proactively address areas of concern to prevent further attrition.

Real-Life Examples of Regrettable Attrition

If you’ve been in the corporate world, you’ve likely seen instances of possible regrettable attrition in the workplace. Some real-world examples are:

• Jenn works long hours, often late into the night. She’s frequently tired and disheveled during morning stand-ups and references her heavy workload in one-on-one meetings. 
• Mike has expressed concern about new company values in all team meetings. He’s asked targeted questions in the chat and indicated in company meetings that he disagrees with the direction. 
• The creative department, in particular, has been scoring low on satisfaction and engagement on quarterly surveys. They are also increasing their PTO and sick requests.
• The organization recently conducted mass layoffs in certain departments. As a result, managers are seeing low levels of project completion and meeting attendance from remaining employees.
• Kwame’s team has gotten smaller because of expiring contracts or normal turnover. His workload has increased as a result. He has been completing his tasks on time, but has noted in meetings that he doesn’t feel appreciated for going above and beyond.

8 Ways to Reduce Regrettable Attrition

Prioritize work-life balance

Supporting employees in achieving a healthy balance between work and personal life is essential for reducing regrettable attrition. Look at comms channels, watch story points in project management systems, and ask questions to keep an eye out for burnout.

To solve, organizations can offer flexible work arrangements, wellness programs, and initiatives that promote employee well-being and mental health. They can also decrease story points and prioritize projects.

Improve the candidate experience

Creating a positive and transparent recruitment process is essential to ensure that new employees have a smooth and welcoming onboarding experience. First impressions make a difference when they’re joining a new team or org.

During onboarding, employees can be introduced to core values and expectations, setting them on the right foot with interactions with the larger org. Providing a supportive and engaging environment from the start can set the stage for long-term retention of new hires and tenured staff.

Conduct exit surveys

Whether regrettable or standard turnover, gathering valuable insights from departing employees through exit interviews and surveys is essential for understanding the reasons for leaving. As they’re leaving the org, you’ll likely receive honest feedback and genuine areas for improvement. 

Analyzing this feedback with leadership and people managers can provide valuable information for implementing more targeted retention strategies.

Strengthen performance management

Providing regular feedback, coaching, and opportunities for professional growth can help employees feel valued and committed to their roles. This can be 1-1 meetings, skip-level meetings, or informal feedback and employee recognition.

Effective performance management is critical for recognizing and nurturing talent within the organization. If they feel supported in their long-term growth, they’re more likely to invest emotionally and physically with a company.

Utilize people analytics

Leveraging data-driven insights to identify trends and patterns related to turnover is essential for implementing targeted retention efforts. People analytics can provide valuable information for understanding the drivers of employee attrition and tailoring retention strategies accordingly.

Typically, these metrics come from a human resource platform or employee engagement surveys. HR managers should pay close attention to variations in data quarter to quarter and year to year. 

Empower employee feedback

Establishing channels for employees to voice their concerns, ideas, and feedback on the work environment and organizational practices is crucial for identifying areas of improvement and addressing potential causes of regrettable attrition.

While this can be rough in orgs with low happiness levels, open communication helps employees feel heard. It can also yield valuable insights that can result in real change.

Nurture company culture

Cultivating a positive and inclusive work culture that aligns with the values and aspirations of the employees is crucial for fostering a sense of belonging and purpose. HR leaders can lead by example and promote a culture of gratitude and employee appreciation within the organization.

Most commonly, company culture comes when organizations celebrate occasions, encourage appreciation, and recognize wins. This can be as simple as giving shout-outs during meetings or having larger events for work anniversaries.

Create employee retention programs

Developing and implementing initiatives specifically aimed at recognizing and retaining valuable talent within the organization is essential for reducing regrettable attrition. When employees see an enterprise investing in them, they’re much more likely to reciprocate. 

Typical employee retention programs can include mentorship programs, career development opportunities, employee awards, and initiatives to celebrate achievements and goals.

Investing in an Appreciation Platform

Utilizing an employee appreciation platform like Kudoboard can play a pivotal role in reducing regrettable attrition. Kudoboard enables organizations to foster authentic appreciation, deliver awards at scale, improve onboarding experiences, boost events and campaigns, and enhance peer-to-peer recognition. 

According to our 2024 Employee Happiness Trends report, 95% of managers using Kudoboard saw an increase in employee appreciation, engagement, and productivity. 92% found that Kudoboard had an impact on improving a sense of belonging and connection between team members. 

The result? More invested and engaged employees and less regrettable attrition. When integrated alongside other retention strategies, Kudoboard’s group eCards and appreciation boards can empower employees to celebrate and recognize. This leads to stronger company culture and greater satisfaction overall.

In today’s dynamic employment landscape, taking proactive steps to reduce regrettable attrition is essential for nurturing a thriving workforce and sustaining organizational success. Regrettable attrition poses significant challenges for organizations, and addressing it requires a multifaceted approach. By prioritizing employee engagement, leveraging appreciation platforms, and creating a supportive work environment, employers can make meaningful strides in reducing regrettable attrition.