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Case Study: 40% Reduction in Employee Turnover

Natalia CuadradoNovember 25, 202412 min read
Case Study: 40% Reduction in Employee Turnover

Executive Summary

Note: This case study is a hypothetical scenario illustrating the potential impact of a comprehensive workplace wellness programme. The company name and specific figures are illustrative, based on published industry research from Deloitte, WHO, and SHRM.

A 350-person technology company facing 28% annual turnover implemented a comprehensive workplace wellness platform. Within 18 months, turnover dropped to 17% — a 40% reduction that saved an estimated $2.1 million annually.

This case study examines what a well-executed implementation looks like and the lessons organizations can apply.

The Challenge

Company Background

TechCorp (name changed for privacy) is a B2B SaaS company based in Austin, Texas. Like many tech companies, they faced intense competition for talent and struggled with retention, particularly among mid-level engineers and managers.

The Problem

In early 2023, leadership noticed alarming trends:

  • -Annual turnover had climbed from 18% to 28% over three years
  • -Exit interviews consistently cited "burnout" and "work-life balance" as reasons for leaving
  • -Employee engagement scores had declined 15 points
  • -Glassdoor ratings dropped from 4.2 to 3.6 stars
  • -Healthcare costs were rising 12% annually

Previous Attempts

TechCorp had tried several interventions:

  • -Unlimited PTO (rarely used, actually increased stress)
  • -Meditation app subscriptions (3% engagement after 90 days)
  • -Monthly "wellness days" (appreciated but didn't address root causes)
  • -Manager training on burnout (one-time, quickly forgotten)

Nothing moved the needle.

The Approach

What They Looked For in a Solution

After evaluating several approaches, TechCorp prioritised three criteria:

  1. -Prevention focus — early warning system vs. just crisis response
  2. -Manager enablement — tools for managers, not just employees
  3. -Integration — connected to Slack and existing workflows

Implementation Phase (Months 1-3)

Week 1-2: Leadership Alignment

  • -Executive team trained on the platform and philosophy
  • -CEO recorded video explaining why this mattered
  • -Leadership committed to visible participation

Week 3-4: Manager Preparation

  • -All 45 managers completed training on:
    • -Recognizing burnout signs
    • -Having supportive conversations
    • -Using team wellbeing dashboards
    • -Protecting their own mental health

Week 5-8: Phased Rollout

  • -Started with two volunteer teams (60 employees)
  • -Refined approach based on feedback
  • -Expanded to full organization in week 8

Week 9-12: Optimization

  • -Adjusted check-in frequency and questions
  • -Customized alerts and thresholds
  • -Integrated with performance management cycles

Ongoing Operation

For Employees:

  • -Weekly 2-minute check-ins via Slack
  • -Optional mood logging
  • -Personalized resource recommendations
  • -Confidential access to support resources

For Managers:

  • -Team wellbeing dashboard (aggregate data only)
  • -Alerts when team patterns suggest concern
  • -Suggested conversation starters
  • -Training refreshers and resources

For Leadership:

  • -Organization-wide trends and benchmarks
  • -Department comparisons
  • -Correlation with business metrics
  • -Quarterly deep-dive reviews

The Results

Quantitative Outcomes (18 Months)

| Metric | Before | After | Change | |--------|--------|-------|--------| | Annual Turnover | 28% | 17% | -40% | | Regrettable Turnover | 22% | 11% | -50% | | eNPS Score | +12 | +38 | +26 points | | Engagement Score | 62 | 78 | +16 points | | Healthcare Cost Growth | 12%/yr | 4%/yr | -8 points | | Glassdoor Rating | 3.6 | 4.3 | +0.7 stars |

Financial Impact

Turnover Savings:

  • -Previous: 98 departures × $65K average replacement cost = $6.4M
  • -After: 60 departures × $65K = $3.9M
  • -Annual savings: $2.5M

Healthcare Savings:

  • -Projected 12% increase on $3.2M spend = $384K
  • -Actual 4% increase = $128K
  • -Annual savings: $256K

Productivity Gains:

  • -Conservative estimate based on engagement improvement: $400K

Total Annual Benefit: ~$3.1M Program Cost: $180K ROI: 17:1

Qualitative Outcomes

Employee Feedback:

"For the first time, I feel like leadership actually cares about how we're doing, not just what we're producing."

"The check-ins helped me realize I was burning out before it was too late. My manager and I adjusted my workload before I reached crisis point."

Manager Feedback:

"I finally have visibility into my team's wellbeing. The dashboard helped me identify issues I would have completely missed."

"The training changed how I think about my role. Supporting mental health isn't extra work—it's core to being a good manager."

Key Success Factors

1. Leadership Commitment

The CEO's visible participation set the tone. When employees saw leadership taking this seriously, participation and honesty increased.

2. Manager Enablement

Managers were given tools, training, and time to support their teams. This wasn't added to their plates—it was integrated into their core responsibilities.

3. Action on Insights

When data revealed issues, action followed. Employees saw that their feedback led to real changes:

  • -Workload rebalancing in overloaded teams
  • -Schedule flexibility for struggling employees
  • -Additional resources for high-stress periods

4. Patient Implementation

TechCorp resisted the urge to declare victory too early. They committed to 18 months before evaluating results, allowing time for cultural change.

5. Privacy Respect

Employees trusted the system because individual responses were truly confidential. Managers only saw aggregate team data.

Lessons for Other Organizations

Do:

  • -Get executive sponsorship before starting
  • -Train managers thoroughly—they're the key leverage point
  • -Start small and iterate
  • -Act on what you learn
  • -Measure everything and be patient

Don't:

  • -Launch without leadership alignment
  • -Expect overnight results
  • -Treat this as an HR initiative only
  • -Compromise on privacy
  • -Forget to celebrate progress

Conclusion

TechCorp's success wasn't magic—it was the result of genuine commitment, proper implementation, and patience. The technology enabled what good intentions alone couldn't achieve: systematic, scalable support for employee wellbeing.

The 40% turnover reduction was impressive, but perhaps more importantly, TechCorp became a place where people wanted to work. In a competitive talent market, that's the ultimate competitive advantage.


Results will vary by organization. Harmony is building tools to help companies develop wellness strategies tailored to their specific context. Join our waiting list to learn more.

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