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How companies reduce turnover with mental wellbeing

Tim Kleber
Nov 2025

Business case: How structured mental wellbeing management reduces fluctuation in the long term

The underestimated costs of employee turnover

In many companies, fluctuation is regarded as an unavoidable side effect of a dynamic working world. The departure of employees is by no means a mere change in personnel — it is often a symptom of deeper disruptions. It is particularly problematic that the actual exit often begins months in advance: as an internal resignation, as silent distancing. Employees remain physically present, but have long since made their way out emotionally.

This development is not only a challenge for corporate culture, but also a massive economic risk factor. The effects on productivity, innovative capacity and brand attractiveness are significant — and they can be quantified. Based on current research and specific company examples, this article shows how targeted investments in mental wellbeing can not only reduce turnover, but also achieve a significant return on investment.

What fluctuation really costs — and what we often overlook

The direct costs of dismissal are now known to many organizations: recruitment, selection processes, training periods, lost productivity — all of this adds up to a considerable amount. According to a study by the German Economic Institute, the financial loss per loss of employee is between 25,000 and 60,000 euros. But these figures are just the tip of the iceberg.

The indirect costs — such as loss of trust within the team, demotivation due to overwork, vacant key roles and frictional losses due to handovers — are harder to capture, but are at least as relevant. In complex organizations in particular, there are chain reactions: If a central role is omitted, an entire process often goes into trouble.

There are also opportunity costs: ideas that are not developed, initiatives that are not initiated and customers that are not reached. Fluctuation not only creates gaps — it acts as a brake on culture and innovation. And the higher the strategic relevance of a position, the greater the damage.

Psychological causes of fluctuation — what numbers alone do not explain

Why do people leave a company? The usual explanations — better pay, shorter commutes, new challenges — often fall short. In fact, these are usually downstream rationalizations of a deeper decision. Studies show that emotional alienation from companies is one of the strongest predictors of termination intentions.

A central concept in this context is psychological safety — i.e. the feeling of being able to express oneself authentically without fear of negative consequences. If they are missing, communication blockages, withdrawal tendencies and silent conflicts develop. Other key stress factors include chronic exhaustion, lack of recognition and lack of autonomy.

Psychological stress often acts like a creeping poison: It manifests itself in cynical remarks, inner retreat, avoidance of responsibility — in short, in a culture of emotional absence. The longer these factors go unnoticed, the harder it becomes to retain employees. The good news is that these mechanisms can be measured — and controlled.

The structured approach — thinking of mental wellbeing systemically

Mental wellbeing must be understood as a management task — not as a wellness program. Companies that seriously address the mental state of their organization are establishing a system for early identification of risks, continuous self-observation and targeted management of change processes.

This can only be achieved if data is systematically collected, analyzed and translated into concrete management behavior. Platforms such as mentalport make exactly that possible: They offer companies a framework that comprises all relevant steps, from initial location analysis to implementation of appropriate measures and evaluation. The focus is not on the individual stress factor, but on the interplay of structural, cultural and individual elements.

The benefits are obvious: If you measure systematically, you can act preventively. Increasing psychological security lowers the potential for conflict. And anyone who shows employees that mental health is not only tolerated but promoted strengthens the emotional bond — and reduces the tendency to change over the long term.

Case study — How a medium-sized company reduced its turnover

A specific use case illustrates the effectiveness of structured mental wellbeing management particularly vividly. A medium-sized industrial company with around 300 employees had a stable but economically problematic fluctuation rate of around 14% over the years. Despite an emphasis on employee orientation, various incentives and management training, it was not possible to reduce the number of voluntary layoffs. Management was under growing pressure as both recruitment and training became increasingly time-consuming and costly.

After a thorough inventory, it was decided to introduce a digital mental wellbeing framework, in this case via the mentalport platform. Within six weeks, an organization-wide audit was carried out in compliance with all data protection standards. The response rate was over 75% — a strong signal that the topic was highly relevant to employees.

The evaluation of the assessments revealed several main areas of stress, including a pronounced area of tension between team and division managers, a high level of uncertainty in the distribution of roles and significant mental exhaustion in project-heavy departments. These results were discussed with managers and targeted measures were then taken: Clearer definitions of responsibility, micro-coaching for middle management and structural adjustments in resource management.

After just one year, fluctuation was reduced by just under five percentage points — a decline that saved around 350,000€ per year in direct and indirect follow-up costs. There were also other positive effects: The average length of stay rose, the internal recommendation rating in employee surveys improved by 19% and the number of mentally related sick days was significantly reduced.

This example illustrates: It is not enough to manage symptoms such as cancellations. Effective management starts with understanding the causes — and starts specifically where psychological stress has remained invisible so far.

Strategic integration — mental wellbeing as a cultural and leadership factor

The benefits of structured mental wellbeing management are not limited to short-term savings. Instead, they develop their full potential where mental health becomes an integral part of strategic corporate management. This perspective is new for many organizations — it moves the topic from the area of reactive health management to the core of operational management.

One key lever here is integration into existing management and decision-making processes. Managers who regularly receive feedback on the mental climate in their teams are better able to act preventively. They identify overload tendencies, misunderstandings or role ambiguities at an early stage — and can intervene in a targeted manner before conflicts escalate or employees withdraw.

Another aspect is the connection to organizational development. Mental wellbeing data provides information about cultural patterns, tensions between hierarchical levels, or structural deficiencies in cooperation. They open up new avenues for transformation — and strengthen the interplay between HR, leadership and strategic management.

In the long term, this pays off in a multi-dimensional way: in higher employee loyalty, in better employer reputation, in more resilient teams and in a culture that remains able to act even under uncertainty. Companies that invest here early not only create a competitive advantage — they ensure their ability to act in times of dynamic change.

Implementation and scaling — From analysis to organizational learning curve

The introduction of a mental wellbeing framework is not a project with a start and end point, but a continuous learning process. Getting started usually starts with a low-threshold audit — such as the mental health audit from mentalport — which quickly provides clarity about main areas of stress, mental strengths and development potential.

In the next step, prioritized fields of action are derived: Which teams are particularly heavily burdened? Where are there structural conflicts? Which managers need support? Based on these findings, concrete measures can be defined — from coaching to team development to adapting organizational interfaces.

Integration into existing systems is a key success factor. Mental wellbeing data should not be managed as a parallel structure, but should be incorporated into management reports, HR indicators and transformation processes. This is the only way to create organizational learning that has an impact beyond individual cases.

Automation and smart analytics make this process scalable. Platform-based solutions such as mentalport make it possible to continuously track relevant developments, set benchmarks and provide managers with concrete suggestions for action. It becomes clear that mental wellbeing is not an additional task — it is a strategic management tool.

Conclusion and recommendation for action — From duty to strategic choice

Fluctuation is not just a challenge for HR controlling. It is an early indicator of profound structural and cultural problems — and thus a strategic risk signal. Anyone who wants to prevent highly qualified employees from leaving the company today must do more than optimize benefits or conduct exit talks. It is about prevention. About structure. And about managing mental complexity.

Effective mental wellbeing management provides the necessary tools for this. It creates transparency about psychological stress, identifies weak points in leadership and organization, and makes measures predictable, controllable and scalable. Companies that see mental wellbeing as a management task not only strengthen individual health — they ensure their innovative strength, productivity and ability to change.

A phased start with a structured audit is recommended. This makes it possible to obtain an initial overview with minimal use of resources, which serves as a basis for decision-making for targeted interventions. The important thing is: Mental wellbeing shouldn't be a flash in the pan. It must become part of DNA. Because only then can the full potential be developed — for employees, for the company and for the future viability of the entire organization.

The right time to act isn't tomorrow. It is now.

List of sources

  • Gallup (2023). “State of the Global Workplace Report.” Gallup Inc. [https://www.gallup.com/workplace/349484/state-of-the-global-workplace.aspx]
  • Federal Institute for Occupational Safety and Health (BAuA). “The changing world of work — figures, data, facts” (2022). [https://www.baua.de/DE/Angebote/Publikationen/Berichte.html]
  • Cologne Institute of Economics (IW). “Costs of employee turnover.” (2021). [https://www.iwkoeln.de]
  • Techniker Krankenkasse (TK). “TK Stress Study — Relax, Germany.” (2021). [https://www.tk.de]
  • BIBB/BAuA employment survey (2021). “Working conditions in Germany.” [https://www.bibb.de]
  • Edmondson, A. (1999). “Psychological Safety and Learning Behavior in Work Teams.” Administrative Science Quarterly, 44 (2), 350—383.
  • HBR (2020). “Burnout Is About Your Workplace, Not Your People.” Harvard Business Review. [https://hbr.org/2020/12/burnout-is-about-your-workplace-not-your-people]
  • Mentalport internal project analyses and customer benchmarks (2023).

Note: Some data and statements are based on anonymized practical cases from projects using the mentalport platform. Learn more and white papers here.

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