Workforce Turnover Rates Rising? How to Reverse the Trend

Workforce turnover hurts more than just your budget. When team members leave, you lose more than talent—productivity drops, morale suffers, and your company culture takes a hit. What’s more, according to MBO’s State of Independence report, only 63% of traditional jobholders believe their employer is committed to retaining talent. 

Whether your team includes employees, independent contractors, or both, keeping great talent takes more than luck. Implementing the right strategy can create a workplace where top performers want to stay. 

7 Tips to Reduce Workforce Turnover

1. Build a Positive Work Environment

People stay where they feel valued. Your workforce is more likely to develop loyalty when you encourage open communication and collaboration. More importantly, supporting everyone through both challenges and wins helps build stronger, long-term relationships. 

Addressing issues quickly and promoting mutual respect reduces turnover and strengthens your culture. If your team feels heard and respected—regardless of employment status—they’re more invested in your shared success. 

Check Out: 8 Best Practices for Working With Independent Contractors 

2. Offer Meaningful Perks and Incentives

Even satisfied workers will explore other options if compensation lags behind industry standards. That’s why regular market reviews help keep your pay competitive and reduce preventable turnover. 

But remember, retention goes beyond money. Offering attractive perks and incentives signals that you value people as individuals, not just resources. For example, remote work and flexible scheduling demonstrate commitment to their well-being, increasing long-term loyalty.

3. Strengthen Your Onboarding Process

First impressions shape long-term outcomes. Workers who felt their onboarding was highly effective are 18 times more likely to feel highly committed to their organization, according to a Deloitte report. Without a strong onboarding process, new contractors or employees may feel unsure about expectations or disconnected from the team—leading to early exits. 

The solution: A thoughtful onboarding experience introduces your culture, clarifies roles, and connects people with key team members. This solid start builds engagement from day one. 

See: 7 Ways to Onboard Contractors Easier and Faster 

4. Support Career Growth and Development

Top talent looks for opportunities to learn and advance. Contractors and employees alike stay more engaged when they see potential for a long-term relationship with your organization.  

Training, mentorship, and leadership opportunities help people build new skills while reinforcing your investment in their future. Best of all, encouraging their growth shows you’re thinking beyond short-term assignments—and strengthens overall retention. 

5. Promote Work-Life Balance

Burnout drives turnover: 51% of employees experienced burnout in the past year, according to a Grant Thornton survey. Companies that support work-life balance enjoy stronger performance and higher retention rates. 

Simple strategies like flexible schedules, remote work options, and respect for time off help everyone manage their responsibilities. Setting clear boundaries around after-hours communication also protects wellbeing. In return, you’ll get more focus, commitment, and energy from your team. 

See: 8 Ways to Offer Wellness Benefits to Independent Professionals  

6. Recognize Your Team for Their Efforts

Appreciation plays a powerful role in retention. Even small, genuine recognition—like a thank-you email or acknowledgment in a team meeting—can go a long way. 

Involving contractors and employees in meaningful discussions and recognizing their contributions builds deeper engagement. When people feel seen, they’re more likely to stay and invest in your company’s success. 

7. Maintain Strong Leadership and Set an Example

The old adage holds true: People leave managers, not companies. This happens most often when team members feel undervalued or unsupported. Strong leadership makes all the difference. 

​What sets great leaders apart? They communicate clearly, listen actively, and lead with consistency. Managers who master these skills create stronger relationships and build lasting loyalty within their teams. 

Discover: How to Successfully Collaborate With Independent Contractors 

MBO Partners Supports Your Workforce Development Efforts

No matter your industry or location, independent contractors can have a major impact on your organization. If you’re looking for additional support with contingent workforce management, MBO Partners offers a wealth of tools and resources to help you build your workforce for the future.