How to retain employees: a practical guide for HR leaders in Switzerland

Retaining employees works best when a company consistently combines trust, fair pay, genuine development opportunities and a healthy leadership culture. In Switzerland, where the labour market remains tight despite a slight rise in unemployment, the ability to retain employees increasingly determines a company’s competitiveness. This guide sets out concrete, actionable measures to reduce turnover and strengthen your team for the long term. 

Key takeaways 

• Retaining employees starts on the first working day, not after the probation period ends, since a weak onboarding process significantly raises the risk of early resignation. 

• The most common reasons for resignation are the relationship with the direct manager and their leadership style, a lack of development prospects, and pay perceived as unfair. 

• A good turnover rate sits between 8% and 12% per year in most Swiss industries, with hospitality and retail showing considerably higher figures. 

• Flexible working models and a genuinely protected right to rest are among the most effective, and at the same time most cost-efficient, retention levers. 

• Regular, structured conversations between managers and employees prevent demonstrably more resignations than one-off perks or bonus payments. 

For many years, career development followed a relatively predictable path. People learned a profession, gained experience and built their careers around a set of skills that could remain relevant for decades.

Today, the future of work is changing more quickly. New technologies are transforming how tasks are performed, industries are evolving and professionals are increasingly expected to learn throughout their careers. The challenge is no longer simply keeping up with new tools, but remaining adaptable as workplaces and roles continue to change.

Why retaining employees matters more than ever 

Retaining employees is a strategic necessity today, because every resignation costs knowledge, client relationships and productivity that cannot be replaced overnight.

The Swiss labour market currently combines historically low unemployment with a noticeable shortage of qualified professionals in several sectors. Companies that do not actively invest in retention today lose talent to those that do. 

The real cost of losing an employee 

Losing an employee typically costs considerably more than many companies budget for. Direct costs for recruitment, onboarding and temporary cover are joined by indirect losses from knowledge drain, reduced productivity and added pressure on the remaining team. In knowledge-intensive or specialised roles, the total cost can reach several months’ salary for the position concerned.

There is also the risk of a poor hire: filling a vacancy under time pressure increases the likelihood of a wrong recruitment decision, which further raises the real cost of a resignation. This scale is exactly why prevention makes more economic sense than replacement. 

Attracting and retaining employees in today’s labour market

Companies that want to attract and retain employees today need to recognise that bargaining power has shifted noticeably towards employees. According to the State Secretariat for Economic Affairs (SECO), Switzerland’s unemployment rate stood at 2.9% in June 2026, a level that continues to intensify competition for qualified talent.

At the same time, recent market analyses show that the shortage of skilled workers is easing only slowly in areas such as healthcare, construction and technical trades, despite the economic slowdown. Companies that want to both attract and retain talent therefore need a consistent strategy that starts at recruitment and extends well beyond the first day on the job. 

Measuring and monitoring turnover with data

Turnover can only be managed once it is measured correctly and tracked regularly. Without reliable metrics, every retention measure is little more than guesswork. A structured data foundation also helps you spot earlywhich teams or locations are showing signs of trouble. 

How to calculate your turnover rate

Turnover rate is calculated by dividing the number of departures in a given period by the average headcount over the same period, then multiplying the result by 100. A company with an average of 200 employees and 20 departures per year therefore has a turnover rate of 10%.

For more meaningful results, it is worth reporting voluntary and involuntary departures separately, since each reveals different causes and different areas foraction. 

What counts as a “good” turnover rate, and how it varies by industry

A turnover rate between 8% and 12% per year is considered healthy and normal across most industries in Swiss HR practice.

Industries with a high share of temporary or seasonal roles, such as hospitality, retail or construction, typically show considerably higher figures without this necessarily pointing to a structural problem. In care and nursing professions, the Swiss Health Observatory (Obsan) tracks turnover separately, given its direct impact on quality of care. 

Industry	Typical turnover rate	Main drivers
Industry, technical roles, finance	8–12%	Career development, compensation
Retail	15–25%	Seasonality, share of part-time roles
Hospitality	25–40%	Seasonal work, workingconditions
Construction	15–20%	Project-based employment
Healthcare and care professions	12–18%	Workload, shift work

Pulse surveys and HR technology to catch flight risk early

Short, regular pulse surveys often pick up on declining satisfaction months before a resignation is handed in. Questions on workload, leadership and development prospects tend to be more informative than a single, lengthy annual survey.

HR analytics tools can additionally help surface patterns such as fewer internal applications, more frequent absences or declining engagement, before they translate into resignation numbers. 

What is really driving employees to leave

The real reasons behind resignations often differ noticeably from management’s assumptions. 

While managers frequently assume pay is the main driver, recurring patterns in exit interviews usually reveal a more layered picture involving leadership, development and recognition.  

The most common reasons, from pay to poor leadership

The following factors come up again and again as central reasons for resignation in exit conversations and retention studies: 

• A lack of trust in the direct manager, or insufficient support in day-to-day work. 
• A lack of development or advancement opportunities within the company. 
• Pay perceived as unfair compared with the market or with colleagues. 
• Sustained overload without adequate compensation or flexibility. 
• A lack of recognition for work delivered. 

How to read your own exit data instead of guessing 

Rather than relying on general studies, you should systematically analyse your own exit interviews and departure data. Categorise every reason for leaving consistently, and review the data quarterly by department, location and manager.

This shows you whether you are looking at a company-wide pattern or a problem localised to a specific team. 

Retention starts with onboarding

Retention starts on the first working day, not once the probation period ends. A structured onboarding process, with clear points of contact, defined goals for the first 90 days and regular feedback, meaningfully reduces the risk of early resignation.

New employees who feel disoriented during their first weeks leave the company at a disproportionately high rate within their first year. A well-designed start therefore pays off directly in later retention. 

Give your employees flexibility and a real work-life balance

Flexibility is among the most effective, and at the same time most affordable, levers for retaining employees. Companies that make working hours and location flexible wherever the role allows consistently report higher satisfaction and lower turnover. What matters is that flexibility is not just offered on paper, but genuinely lived in day-to-day work. 

Flexible hours, remote and hybrid options

Flexitime models, compressed working weeks or hybrid arrangements with clearly defined in-office days give employees control over their day without undermining operational planning. For operational roles that require physical presence, flexibility can often be achieved through shift-swap options or predictable rostering. 

Protecting personal time and respecting the right to disconnect 

Swiss labour law and the Code of Obligations already protect employees’ daily rest periods, even though Switzerland does not yet have a standalone law on the right to disconnect, unlike some neighbouring countries. Companies that clearly signal to employees that they are not expected to be reachable outside working hours meaningfully strengthen trust. A written, internally communicated policy on availability adds further clarity for both sides. 

Why flexibility keeps paying off after the pandemic-era shift 

The flexibility introduced during the pandemic has become a lasting expectation for many employees, rather than a temporary concession. Companies that roll back flexible arrangements risk higher resignations, particularly among the qualified talent that, thanks to their skills, has the widest choice of alternatives. Flexibility therefore remains a central factor in retaining employees over the medium term as well. 

Trade micromanagement for autonomy, purpose and mastery 

Autonomy, a clear understanding of goals, and the opportunity to develop one’s own skills motivate more durably than close control. Employees who feel they are given genuine responsibility identify more strongly with their role and with the company. 

Giving employees ownership of how they work

Rather than prescribing every step, managers should define clear goals and leave employees to determine the path to reach them. This requires trust, along with clear guardrails within which decisions can be made independently.  

Job crafting: adapting roles to individual strengths

Job crafting means adapting existing roles so they better reflect an individual’s strengths and interests, without changing the core responsibilities of the position. This can mean giving someone more project ownership, client contact or technical specialisation where it matches their strengths. Job crafting demonstrably increases engagement, because employees experience and shape their role more as their own. 

Build real career paths through internal mobility

Internal mobility shows employees concretely that development is possible within the company, rather than something that must always be sought externally. Without this prospect, ambitious employees inevitably look for their next challenge with another employer. 

Posting open roles internally before recruiting externally

A requirement to post vacancies internally before external recruitment signals to employees that their development is a priority. It also improves hiring success rates, since internal candidates already know the company culture and processes. 

Mentoring and clear progression paths

Structured mentoring programmes and transparently communicated advancement criteria give employees a realistic view of how their career can develop within the company. Without this transparency, development remains, for many employees, a vague promise rather than a tangible prospect. 

Pay fairly, and communicate the full picture 

Fair pay is a basic requirement for retention, but rarely the only decisive factor. What matters is that employees perceive their pay as fair relative to the market and to colleagues, and that the full value created by the employer is made visible. 

Benchmarking salaries and checking pay equity 

Regular salary benchmarks against comparable roles in the Swiss labour market show early where adjustment is needed. In addition, pay equity analyses check whether unjustified gaps exist within comparable roles, for example between genders or age groups. Both practices are now standard in responsible HR management in Switzerland. 

Making the full compensation package visible, not just salary 

Many employees are unaware of the value of their compensation beyond base salary, including pension fund contributions, training budgets, holiday days above the statutory minimum, or supplementary insurance. A clearly itemised annual overview of this total compensation makes the real value of the employment relationship transparent and strengthens perceived fairness. 

Recognise and value contributions, regularly

Recognition works best when it is timely, specific and regular, rather than limited to an annual bonus. A simple, genuine thank-you for a specific achievement often has a stronger effect on retention than a blanket gift. Companies that build recognition systematically into team meetings, one-to-ones and company-wide communication report noticeably higher engagement. 

Strengthen the relationship between employees and managers 

The relationship with the direct manager influences retention more than almost any other single factor. Companies that invest in leadership quality often reduce turnover more sharply than through financial incentives alone.  

Why employees leave managers more often than companies 

In practice, employees resign more often because of a difficult relationship with their direct manager than because of the company as a whole. A lack of feedback, insufficient support or unclear expectations place particular strain on this relationship. Investing in leadership development therefore has a direct impact on the retention rate. 

Regular one-to-ones, open feedback and visible follow-through 

Regular, structured one-to-ones create space to raise concerns before they become a reason to resign. What matters is not just listening, but visibly acting on the concrete measures that follow from that feedback. Managers who collect feedback but never visibly act on it lose their team’s trust over time. 

Build community and a sense of belonging 

A strong sense of belonging comes from genuine relationships within the team, shared experiences and a culture where different people feel welcome. Regular team formats, cross-functional exchange and inclusive communication all contribute significantly.

Employees who see themselves as part of a community leave a company less often out of pure dissatisfaction with individual aspects of the role. Genuinely lived diversity and inclusion further strengthen this sense of belonging, as employees from different backgrounds feel equally valued.  

Retention as a compliance and leadership responsibility 

Retention is not solely an HR task, but a shared responsibility between compliance and leadership. Swiss labour law, through Article 328 of the Code of Obligations, places a duty of care on employers towards their employees, including protection of their health and personality. Companies that take this duty of care seriously and train their managers accordingly build both the legal and cultural foundation for lasting retention.  

When someone leaves anyway: exiting well 

Even with the best retention strategy, employees will leave, and a professional exit process remains just as important as onboarding. A structured exit interview, an orderly handover and a respectful farewell leave a lasting impression that affects employer reviews, referrals and the possibility of a later return.

Former employees who leave on good terms frequently become customers or renewed applicants themselves. This phenomenon, known in HR practice as boomerang recruiting or rehiring, is growing in importance, even though robust figures for Switzerland are currently lacking. 

Conclusion

Retaining employees is not a single programme but the result of many consistent decisions, from leadership culture to fair pay to genuine development prospects. Companies that actively measure turnover, understand the real reasons behind departures, and work deliberately on flexibility, recognition and leadership quality reduce their turnover noticeably.

Gi Group supports companies in Switzerland in finding and retaining the right talent, whether through temporary staffing, permanent placement or additional HR services. Investing in employee retention today secures a clear competitive advantage in the fight for talent tomorrow. 

FAQs (Frequently Asked Questions)

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