When candidates are scarce, every departure costs more than it seems. Recruitment, onboarding and the time it takes to reach full productivity all cost time and money, while putting extra pressure on the team. In this article, we explore why people leave, how to spot the signs earlier and what HR can do even when a salary increase is not an option.
1. Why retention matters more than recruitment right now
In the previous article, we discussed the labour shortage. Research by OLX Robota and the European Business Association shows that 78% of businesses report a shortage of employees in their sector, compared with 60% in 2025. Companies cite mobilisation and difficulties employing men (69%) and migration abroad (61%) among the reasons.
In a market like this, losing someone means more than simply opening a vacancy. It means weeks or months of searching, and sometimes the role remains unfilled altogether.
In addition, according to Work.ua, cited by MP Nina Yuzhanina and reported by Minfin, 35% of companies reported higher staff turnover than last year. For 51%, the situation remained unchanged, while only 14% managed to reduce employee departures.
The cost of replacing one person.Gallup estimates that replacing an employee costs between half and twice their annual salary. These are US figures, so they should be treated as a reference point for Ukraine. As an example, take an average salary of over UAH 30,000, according to the State Employment Service. Using this approach, replacing one employee could cost approximately UAH 15,000 to 60,000.
The cost of losing a person goes beyond recruiting their replacement. Comments fromOleksandra Hospod, Head of HR Growly, CIPD Level 7:
“Retention is almost always more cost-effective than recruitment, and it is not just about the budget for filling a vacancy. Someone already on the team knows the context and the rules and is already part of the company’s culture: they understand how decisions are made, whom to approach with a question and what counts as a job well done. A new person needs time to learn all this, often quite a lot of time. According to Gallup, even with good onboarding, an employee takes several months to reach full productivity, or sometimes a year for a complex role.
Companies often underestimate the hidden losses: the team takes on someone else’s tasks and becomes overloaded, the manager spends time on recruitment and onboarding, and expertise and relationships leave with the person. In Ukraine, where a vacancy can remain open for months, these losses only grow.”
2. Why people leave
It is useful to compare what companies say with what employees themselves say.
The employer perspective(data from Work.ua). People most often leave companies because of pay levels (31%). This is followed by mobilisation (24%), burnout (16%), danger and general instability (13%), and forced relocation (9%).
The employee perspective(research by GRC.UA, with over 600 respondents). Respondents could select up to three reasons why they were considering leaving:
- lack of development: 55%;
- low compensation: 55%;
- feeling undervalued: 50%;
- burnout or excessive workload: 45%;
- lack of purpose or impact: 20%;
- difficult relationships with their manager: 20%;
- lack of feedback: 10%.
These studies used different samples and methods, so the figures should not be compared directly. But they share a conclusion: money matters, yet it is far from the only factor. Only 25% of those surveyed by GRC.UA feel very valued by their company, while 65% receive quality feedback less often than once every three months.
Gallup’s research revealed another important finding: 52% of employees who left voluntarily say their manager or organisation could have prevented it. And 51% said no one had spoken to them about their job satisfaction or prospects in the three months before they left. These are US findings, but they clearly illustrate why conversations matter.
What HR professionals say: survey results
We asked members of SmartExpert UA’s HR besties community which reasons for leaving they see most often. Multiple answers were allowed.
HR professionals and recruiters most often citedburnout and excessive workload: 56%. In second place was low pay or a better offer from another company (45%). Interestingly, unlike the data from Work.ua, where pay comes first, HR professionals in our community primarily see burnout. This echoes the research by GRC.UA, in which 45% of employees consider burnout a reason to leave.
Next came moving abroad or relocating (30%) and difficult relationships with a manager (28%). Lack of development and career growth, and feeling that their work is not valued, were each cited by 26% of participants. Danger and instability were selected by 15%, and mobilisation by 5%.
The survey reflects community members’ opinions and is not a representative study.
3. Early signs that someone may leave
- reduced engagement and initiative: the person stops suggesting ideas and speaks less in meetings;
- changes in behaviour: becoming withdrawn and avoiding conversations about the future;
- interest in conditions they previously paid little attention to, such as working hours, salary ranges or the resignation process;
- an increase in mistakes or, conversely, excessive rule-following and formality.
The key point: a sign is not a decision. It is a reason for a conversation, not for monitoring someone.
4. What you can do without increasing salaries
The study by Work.ua shows that only 28% of companies take a comprehensive approach to retention, 27% rely on salary increases, and 25% have no systematic strategy at all. Very few use tools that work over the long term: 6% have introduced flexible arrangements, 7% invest in learning, 4% work with feedback and 3% offer psychological support. This is where you can make a difference.
4.1. Conversations about development and why someone stays
Lack of development is considered a reason to leave by 55% of those surveyed by GRC.UA. That is why regular one-to-ones and stay interviews — short conversations with employees about what keeps them at the company and what could change — work better than any exit questionnaire.
What to do:once a quarter, ask key employees three questions: what do you enjoy about your work, what drains you and what would you change? Record what you agree and revisit it.
4.2. Flexibility
Flexible hours, hybrid working and part-time work. The Federation of Employers data cited in our previous article shows that 47.5% of businesses offer part-time work, while more than half provide social support.
What to do:identify changes to working conditions you can offer now without additional costs: flexible start times, one remote day or shift swaps.
4.3. Learning and development
Learning addresses employees’ central question: where am I growing? SmartExpert UA’s LMS platform also helps HR here: it enables employee training and competency development, making HR’s work considerably easier.
What to do:create a short six-month development plan for each key role, with specific skills and deadlines.
4.4. Support against burnout
Burnout is cited as the reason for 16% of departures (Work.ua) and by 45% of respondents to GRC.UA. Yet only 3% of companies offer psychological support.
What to do:start simply: redistribute workloads, prevent regular overtime, remind people to take leave and provide access to psychological consultations, either through the company or partners.
4.5. Safety and transparency
Mobilisation, danger and instability are among the main reasons for leaving. A company cannot control everything, but it can be honest.
What to do:clearly explain what happens to someone’s job if they are mobilised, how mobilisation exemptions work where available, what shelter is available and what to do during an air raid alert. Uncertainty is more frightening than difficult conditions.
4.6. Recognition
Feeling undervalued was cited by 50% of those surveyed by GRC.UA, while only 25% feel very valued.
What to do:offer specific thanks for a specific contribution, show how the person contributes to the team’s results and discuss their next career step even if a promotion is not currently possible.
What HR professionals say: what has worked in practice
In SmartExpert UA’s HR besties community, we asked which of these tools had already helped retain employees. Multiple answers were allowed.
Each received41%of responses across three tools: one-to-ones and stay interviews, flexibility such as working hours, one remote day or shift swaps, and salary increases. In other words, non-financial solutions work as often as money in our community.
Next came burnout support — changes to workloads, leave and access to a psychologist — at33%and recognition — specific thanks and a career step — at30%. Against the backdrop of data from Work.ua, where only 3% of companies offer psychological support, this result shows that even small steps in this direction can make a tangible difference.
Learning and a role development plan helped 8% of participants, while honest communication about mobilisation, exemptions and safety helped 5%. Another 16% admitted that nothing had worked yet, which is a valid starting point for a conversation about where to begin.
The survey reflects community members’ opinions and is not a representative study.
Oleksandra Hospod, Head of HR at Growly, CIPD Level 7, offers advice on what works in practice and where to start:
“Retention only works as a system. A single benefit or one-off salary increase will not solve the problem. We start with motivational factors that are well described in research: according to Deci and Ryan’s self-determination theory, people need autonomy, a sense of competence and development, and belonging to a team. Herzberg’s model also adds ‘hygiene’ factors: safety, working conditions and health. Without these, motivation is hard to find. At Growly, we try to address both levels:
- health and mental wellbeing: medical insurance, a company doctor and reimbursement for psychological support;
- management quality: we teach managers to give feedback, set goals and hold one-to-ones. According to Gallup, managers account for up to 70% of the difference in engagement between teams;
- basic needs: breakfasts and lunches in the office, sport and reimbursement for learning;
- safety: a self-sufficient office with a shelter, the option to work remotely from a safer city, support for an independent workstation and relocation to our Lviv office.
If a company has limited resources, I would start with managers and safety. Regular, honest one-to-ones, recognition, clear rules for work and growth, and transparent communication during crises can achieve a great deal.”
5. The manager’s role
According to GRC.UA, 20% of respondents cited problems in their relationship with their manager. And, as Gallup’s research suggests, many departures could have been avoided if someone had spoken to the person in time.
HR should therefore support managers. Offer them simple tools: a one-to-one conversation template, reminders about monthly feedback and a short training session on recognising burnout and handling difficult conversations.
What HR professionals say: what managers lack
In SmartExpert UA’s HR besties community, we asked what managers most often lack when it comes to keeping people on their teams. Multiple answers were allowed.
HR professionals most often citedunderstanding how to motivate without money: 70%. This directly reflects the topic of this article: when increasing salaries is difficult, managers need other tools. Next came a lack of time for team conversations (64%), feedback skills (59%) and the ability to spot burnout (51%). All these points concern managers’ everyday practice rather than budgets, and align well with data from GRC.UA: only 25% of employees feel very valued by their company, while 65% receive quality feedback less often than once every three months.
Only 8% of participants believe managers lack support from HR. The need is therefore for practical skills and time for conversations, rather than additional HR assistance.
The survey reflects community members’ opinions and is not a representative study.
6. How to measure whether retention is working
Key indicators commonly used in HR analytics:
- Turnover.The number of employees who left during a period, divided by the average headcount and multiplied by 100%. Calculate this separately by department and role.
- Retention.The proportion of people who stayed with the company over the same period.
- Length of service before leaving.If most people leave in the first few months, the issue is onboarding rather than long-term motivation. Onboarding can also be automated on the SmartExpert UA LMS platform without a large time investment, and its AI tools make HR’s work even easier.
- eNPS.A short survey: ‘Would you recommend our company as an employer?’ on a scale of 0–10.
- Reasons for leaving.Collect them systematically, rather than only in exit conversations.
Start simply: update a spreadsheet with these five indicators once a month.
7. This week’s checklist
- Hold three conversations with key employees about what keeps them here.
- Review the reasons for departures over the past year and identify the most common ones.
- Identify 3–5 employees who may be at risk of leaving, with a focus on conversation rather than surveillance.
- Agree on monthly one-to-ones with managers.
- Offer one non-financial change: flexible hours, a learning plan or specific recognition.
