Building High-Performing Teams and Reducing Turnover in 2025

Employee retention remains a critical concern for businesses, with high turnover rates impacting productivity, morale, and company growth. A recent poll found that 45% of HR leaders in the UK believe competitive salaries and benefits are essential for retaining top talent. However, while compensation plays a role, it is not the sole factor driving employee decisions to stay or leave.

Post-pandemic workplace trends show that employees now prioritise career growth, meaningful work, and flexibility. Organisations that fail to meet these expectations risk losing talent to competitors that foster a more engaging and supportive work environment. Additionally, research highlights that teams built on trust, collaboration, and adaptability are more likely to perform at a high level and experience lower turnover rates.

Companies must also acknowledge that leadership styles significantly influence retention. Issues such as micromanagement, resistance to change, and lack of employee feedback mechanisms create disengagement, ultimately leading to higher attrition. Balancing performance expectations with employee well-being is now a key challenge, requiring transparency, realistic goals, and consistent support systems. With businesses navigating these evolving workforce dynamics, understanding the key drivers of retention and high-performance culture is essential for long-term success.

“Moving beyond salary, I think employees are looking for a meaningful workplace, career growth, and probably flexibility as well.”

In a recent discussion, Liz Jones, Managing Director at People2People, sat down with Senior Consultant Maddy Laing to explore the factors influencing employee turnover and strategies for building high-performing teams in 2025.

Laing emphasised that while salary and benefits are important, employees today seek more than just financial incentives. “Moving beyond salary, I think employees are looking for a meaningful workplace, career growth, and probably flexibility as well,” she noted. The shift in employee expectations post-pandemic has prompted individuals to reassess their roles, with many unwilling to stay in stagnant positions or environments where they feel undervalued.

Trust emerged as a key pillar in building a strong, high-performing team. “A strong team is definitely built on trust,” Laing stated. “Especially with flexible work arrangements, trust is essential for fostering collaboration and maintaining performance.” She highlighted that organisations that encourage open communication, recognise employee efforts, and promote a healthy work-life balance are more likely to retain their top talent.

However, certain leadership mistakes continue to hinder retention efforts. Laing pointed to micromanagement as a critical issue, explaining, “Micromanagement kills creativity and trust. If you’re working remotely or flexibly, having a manager constantly checking in on you creates a negative work environment.” Additionally, she cautioned against assuming that traditional management approaches still apply, stating, “What worked five years ago won’t necessarily work today. The way businesses operate has changed dramatically, and companies need to adapt.”

Ignoring employee feedback was another major pitfall discussed. “If leaders aren’t listening to their teams and taking action on their concerns, it creates a negative environment,” Laing said. “Strong retention is built on trust and open communication.” Companies that actively seek employee input and implement necessary changes will foster a culture of engagement and loyalty.

Balancing performance expectations with employee well-being was another crucial topic. Laing stressed that transparency and support are vital, advising, “Setting clear, realistic expectations and providing the right support is huge. Companies should also do regular check-ins, not just about work, but also about employees’ general well-being.” Ensuring that employees feel valued and heard significantly impacts their motivation and overall performance.

As the conversation wrapped up, Laing addressed the ongoing debate around the importance of competitive salaries. “Salaries are always going to be a factor, but they’re not the only thing keeping people around,” she explained. “Great culture, flexibility, and career growth opportunities are just as crucial. If someone is paid well but is unhappy in their role, they will still leave.” She reinforced that retention is about the full employee experience rather than just financial incentives.

Strategies for Building High-Performing Teams and Enhancing Retention

With turnover being a pressing issue, companies must take proactive steps to build strong teams and retain employees effectively. Here are key strategies for success:

Create a Culture of Trust and Collaboration
Employees perform best in environments where they feel trusted and empowered. Leaders should encourage open communication, provide autonomy, and foster a sense of team purpose.

Offer Career Growth and Development Opportunities
Organisations that invest in their employees’ growth are more likely to retain them. Clear career pathways, mentorship programs, and professional development opportunities can enhance job satisfaction and commitment.

Ensure Flexibility Beyond Remote Work
Flexibility isn’t just about working from home—it includes adaptable working hours, job-sharing options, and support for employees’ personal commitments. Companies that provide flexible arrangements are more attractive to modern job seekers.

Avoid Micromanagement and Outdated Leadership Styles
Trusting employees to manage their responsibilities fosters engagement and innovation. Leaders must shift away from excessive control and embrace a more collaborative and supportive management approach.

Prioritise Employee Feedback and Act on It
Businesses should actively seek employee input through surveys, one-on-one meetings, and team discussions. More importantly, they must act on the feedback to create a work environment that meets employee needs.

Balance Performance Expectations with Well-Being
Regular check-ins, mental health support, and fair workloads contribute to a healthier, more engaged workforce. Employees who feel supported are more likely to remain committed to their roles.

Develop a Strong Employer Brand
Companies with a positive workplace culture, strong leadership, and clear values will attract and retain top talent. Employer branding should focus on showcasing a workplace that prioritises both performance and employee satisfaction.

As the workforce landscape continues to evolve, companies must rethink their approach to employee retention and high-performance teams. While competitive salaries remain important, a holistic strategy that prioritises trust, career growth, flexibility, and well-being will ultimately drive long-term success. By implementing these strategies, businesses can build resilient, engaged teams that thrive in 2025 and beyond.