In today’s talent-driven economy, retention isn’t just a HR concern; it’s a business-critical priority. High employee turnover affects not just operations and morale, but long-term business performance. 

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To build an engaged and resilient workforce, organisations need to understand what drives employees to stay, and take strategic steps to support their wellbeing, job satisfaction, and growth. Our article explores the key factors influencing employee retention, along with actionable strategies to strengthen it across your organisation.

What is employee retention, and why is it important?

Employee retention is defined as an organisation’s ability to retain employees and minimise turnover. It encompasses strategies and processes a company implements to keep its talent and reduce the risk of attrition. 

Employee retention is critical for the long-term success and sustainability of any organisation. High turnover can lead to challenges such as: 

• Increased recruitment costs: Businesses with high employee turnover rates may incur considerable costs related to hiring, onboarding, and training new employees.

• Costs of being understaffed: A lean workforce can lead to missed sales, delayed service, and the inability to meet demand, particularly during peak business periods. 

• Low employee morale and motivation: The team morale may be adversely impacted when individuals see their colleagues leave, or are retrenched in quick succession. 

• Loss of institutional knowledge: When experienced employees leave, organisations risk losing institutional knowledge, expertise, and continuity. 

• Reputational damage: High turnover can signal instability to customers and stakeholders. This can be damaging to a company's brand perception, loyalty, and business performance. 

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Key reasons for employee turnover

Improving employee retention starts with understanding the reasons for employee turnover. Common factors include:

• Personal circumstances, such as relocation, family commitments, health issues, and mental health challenges.

• Financial considerations, including lower compensation or benefits relative to similar positions at other organisations.

• Poor workplace relationships, such as ongoing conflicts with colleagues, managers, or the organisation’s leadership.

• A growing focus on attaining work life balance, where employees prioritise their well being over job loyalty.

• Misalignment in values or culture, or when an employee’s skills aren’t a good fit for the role .

• Limited opportunities for growth, including unclear career pathways, weak processes for performance evaluation, or a lack of career development initiatives.

How to calculate the employee retention rate?

To calculate the employee retention rate, you can use the formula below, or an online calculator to work out your employee retention rate.

(Remaining headcount / Original headcount) * 100

Example: If you started the year with 150 employees, and ended with 140 employees, your retention rate will be: (140/ 150) * 100 = 93.3%

Organisations typically calculate their retention rate on an annual basis, though some may do so on a quarterly or monthly basis. The right frequency for your organisation depends on context. 

For instance, you’ll need to track your retention rate more frequently if you’re experiencing a sudden rise in employee departures. Monitoring retention monthly can help identify emerging issues early and enable timely intervention.

In addition to retention rates, it’s valuable to track a broader range of indicators, including employee engagement and satisfaction metrics. This allows you to gain deeper insights into retention drivers and supports more informed decisions across recruitment, human resource management, and culture strategies.

Employee retention in Asia: Statistics and insights

Understanding regional trends can help employers design their retention strategies more effectively. The following statistics offer insight into what’s driving employee turnover in key Asian markets like Singapore and Malaysia, as well as what employees are looking for in their workplaces.

• According to the 2025 Hays Asia Salary Guide, 55% of professionals in Asia are looking to change jobs. 
  
  • In Singapore, 57% of professionals are looking, or are planning to look for a new job this year. This is over double the number of professionals who switched jobs in 2024 (20%). 
  • In Malaysia, 62% of professionals indicated they were most likely to leave their workplaces.¹

• Based on Aon’s 2025 Employee Sentiment Study, the top five influential characteristics attracting employees in Singapore are: 
  
  • Provides better than average pay and meaningful employee benefits (58%)
  • Offers flexible working (26%)
  • Provides support for my wellbeing (19%)
  • Recognises strong individual achievement of performance (18%)
  • Is financially successful, or a market leader in areas in which it competes (18%)²

• Randstad’s 2025 Workmonitor Report indicates that 59% of Malaysians have resigned due to toxic work environments. This is the highest figure recorded in the Asia Pacific region. 
• Additionally, culture and connection play a significant role in career decisions:  
  
  • 61% of Malaysian employees said they would leave their jobs if they felt they didn’t belong.
  • 48% said they would reject a job offer if the company did not actively foster a positive workplace culture.
  • 93% said they perform better at work when they feel a sense of community with their coworkers.
  • 91% said knowing their colleagues personally helps them do their best work.³

Implications for employers: 

Employers in Singapore and Malaysia face rising turnover intent, driven by demands for better pay, flexible work schedules, wellbeing support, and strong workplace culture. In Singapore, over half of professionals are considering a job switch, while in Malaysia, toxic environments and lack of belonging are key dealbreakers. 

These trends highlight the need for holistic employee retention strategies that prioritise not just compensation, but also employee wellbeing and mental health, recognition, and a sense of community.

Employee retention strategies

To improve retention, employers need to take a multi-faceted approach. The employee retention strategies below address the key factors that influence employee satisfaction, engagement, and long-term commitment.

Take a holistic approach to your wellness benefits strategy

A one-dimensional approach to wellness is no longer sufficient. Employees today navigate complex personal and professional challenges — from mental health and financial stress, to career uncertainty and changing business environments. 

To meet these evolving needs, employers need to adopt a holistic approach that supports all aspects of employee wellbeing. 

What employers and HR teams can do: 

• Opt for comprehensive mental health programs that support the full spectrum of employee mental health needs. Mental health isn’t a fixed state; it exists on a spectrum that shifts with an individual’s experiences, stress levels, and life circumstances. ThoughtFull’s mental health program is designed to meet employees wherever they are on that spectrum. Its diverse features support both preventive and curative care, as well as crisis intervention when needed. These include:

• Daily bite-sized coaching to support your employees’ growth and wellbeing
• One-on-one therapy through seamless video or in-person sessions with licensed professionals
• A 24/7 hotline for employees in crisis

• When it comes to financial wellness programs, offering support that is educational, user-friendly, and flexible is key. A strong strategy includes a range of benefits  — such as financial literacy workshops, one-on-one coaching, financial wellness apps, and subsidies for personal expenses. To be effective, your strategy must be varied and adaptable. It needs to take into account the diverse life stages of your employees, and evolve with the real-world challenges they face. 

• Cultivate a culture that embraces growth and failure. Providing diverse professional development opportunities — such as mentorship programs, training and development programs, job shadowing, and continuous feedback — shows employees that you’re invested in their progression. But beyond offering these initiatives, it’s equally important to nurture a culture that embraces failure as part of learning. This encourages your employees to step out of their comfort zones, take calculated risks, and develop a growth mindset. 

• Effective flexible work arrangements require intentional design and ongoing support. Ensure your employees have the right tools, knowledge, and resources to succeed. These include training on time management and remote work best practices, regular check-ins to monitor workloads and wellbeing, as well as access to communication tools, equipment, and secure networks. 

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Build a positive company culture

A positive company culture plays a crucial role in retaining top talent. When employees feel valued, connected, and supported, they’re more likely to stay and contribute meaningfully to the organisation. 

Culture shapes the day-to-day experience of work, influencing employee morale, motivation, and trust. By intentionally building a culture that prioritises belonging, recognition, and open communication, employers can strengthen engagement and reduce turnover.

What employers and HR teams can do: 

• Involve your employees in shaping your organisational culture. Hosting brainstorming sessions on your company’s mission, vision, values, and culture fosters a sense of ownership and engagement. To maintain momentum, form small groups or committees to turn key ideas into action and ensure continued participation.

• Establish multiple communication channels to accommodate different preferences. While some employees may prefer face-to-face conversations, others might feel more comfortable using messaging platforms. Offering varied options ensures that everyone can communicate in ways that work best for them.

• Consider implementing peer-to-peer recognition programs that allow employees to acknowledge and celebrate each other’s contributions. Unlike top-down recognition from managers or leaders, these programs empower individuals to recognise their peers — capturing everyday contributions that managers may overlook. These programs also help foster team connection and a shared sense of success. 

• Go beyond formal employee recognition programs to create fun, engaging  experiences. Try incorporating games, challenges, themed activities, and events to boost participation. These initiatives can leave employees feeling more connected, excited, and motivated to contribute. 

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Leverage human resource management for retention

Human resource management plays a critical role in shaping the employee experience, starting from recruitment to offboarding. 

A strategic, people-first approach helps identify and address the root causes of turnover, strengthen employee engagement, and create conditions where employees feel supported and motivated to stay. The following strategies can help HR teams align their practices with long-term retention goals.

What employers and HR teams can do: 

• Be transparent during recruitment and retention interviews. Hiring managers and HR should be honest about the role’s requirements, expected challenges, company culture, and available perks and employee benefits. This allows candidates to assess their fit and make informed decisions, thereby preventing misalignment and improving long-term retention.

• Design a competitive pay structure. Regularly benchmark your compensation packages against industry standards, particularly for hard-to-fill roles that may require more frequent review. Resources such as Morgan McKinley’s 2025 Singapore Salary Guide, the Hays Asia Salary Guide, Michael Page’s Salary Guide 2025 (Malaysia), and Hays Salary Checker (Singapore/ Malaysia) can help guide your compensation strategy. 

• Make exit interviews count. When conducted effectively, exit interviews provide valuable insights into why employees leave, helping HR teams identify patterns in employee turnover and areas for improvement. Structuring your questions around specific themes, such as career growth opportunities, leadership, company culture, or team dynamics can uncover meaningful feedback that can shape and strengthen your retention strategy. 

Conclusion

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Improving employee retention calls for a sustained, multi-faceted approach that supports individuals across every stage of their journey. While compensation, culture, and career development matter, mental wellbeing is a key element that shapes how employees show up, remain engaged, and grow with your organisation.

Investing in corporate mental health programs like ThoughtFull isn’t just good for people; it’s good for business. Our solution helps reduce absenteeism, improve engagement, and lower downstream care costs, all while supporting your team through every stage of their journey.

Beyond delivering a seamless end-to-end mental health solution, we partner with organisations to ensure a smooth rollout and sustained employee engagement. This includes close collaboration with your HR team, along with implementing launch communications, ongoing engagement initiatives, and more. 

With ThoughtFull, your employees get personalised, accessible care — helping your organisation build a healthier, more resilient workforce.

Sources:

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1. Hays, Hays Unveils 2025 Asia Salary Guide - Latest Singapore Recruitment Trends, Salary Benchmarks and More, February 2025
2. Aon, Two-Thirds of Employees in Singapore Considering Changing Employers Within the Next 12 Months, Aon Study Finds, February 2025
3. Randstad, Understanding and Addressing Toxic Work Environments: Randstad Workmonitor 2025, March 2025

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