How Skills-Based Hiring Reduces Turnover and Boosts Retention

Employee movement is inevitable. People retire, relocate, return to school, or leave the workforce for personal reasons. That natural workforce change, often referred to as employee attrition, is not inherently negative. 

Employee turnover is different. 

Turnover occurs when employees leave because the role did not match their expectations, their skills, or their potential. It’s expensive and disruptive to both teams and overall productivity—and all too commonplace. In fact, nearly 50% of new employees are terminated or quit within 18 months of being hired.  

But it’s also preventable.  

In many organizations, unwanted turnover is treated as a retention issue. In reality, the fix starts much earlier with how people are hired in the first place. 

Explore the top 7 reasons for high turnover.   

Attrition vs. Turnover: What You Can and Can’t Control

Attrition reflects natural or strategic changes to the workforce. In many cases, roles are not immediately replaced; the change is intentional, and the transition is planned for. 

Turnover, however, requires action. When an employee leaves prematurely, the role must be refilled, often under pressure. High turnover signals that something in the hiring, management, or development process is misaligned. 

The critical distinction is control. While organizations cannot eliminate attrition, they can significantly reduce turnover—especially when they focus on improving job fit and long-term alignment during the hiring process. 

Learn how ADT reduced turnover with Harver.   

Why Most Turnover Starts With Poor Job Fit

One of the most common drivers of turnover is a mismatch between the job and the person hired to do it. 

Traditional hiring processes rely heavily on resumes, credentials, and past job titles as indicators of success. These signals are easy to screen for, but they are also incomplete. Two candidates with similar backgrounds can perform very differently once hired. 

When employees struggle to meet role demands or feel their skills are misaligned with expectations, disengagement follows. Over time, performance suffers, morale declines, and the likelihood of turnover increases. 

Fixing turnover starts with fixing how job fit is evaluated. 

Discover how Harver’s Smart Job Navigator matches candidates with best-fit roles.   

Aligning Expectations for Stronger Engagement

Skills-based hiring focuses on what candidates can actually do, not just where they have been. By identifying the skills required for success and assessing candidates against those criteria, organizations gain a far more accurate picture of future performance. 

Data-driven predictive assessments allow hiring teams to evaluate the job relevant capabilities in realistic scenarios. This leads to stronger matches between candidates and roles, higher productivity, and greater confidence once employees are on the job. 

Clear alignment between skills and role requirements also sets better expectations. When candidates understand what the work involves and how success is measured, they are more likely to stay engaged and committed. 

In a survey of employers leveraging a skills-first approach, 89% of respondents saw increased employee retention, with 46% improving employee retention by an average of 18%, and 23% of employers improving employee retention by at least 51%.   

Download our white paper: The Science of Skills-based Hiring. 

Hiring for The Future

Reducing turnover is not only about selecting the right person for the role as it exists now. It also means hiring people who can grow as the organization changes. 

Skills-based hiring emphasizes transferable skills and learning agility, making it easier to identify candidates who can develop over time. Furthermore, employees who see opportunities to build new skills and advance internally are more loyal to employers, with a 9% longer tenure than traditional hires. 

By hiring for potential and supporting further skill development, organizations create a culture of engagement, internal mobility, and long term retention. 

Watch our webinar to uncover new strategies to future-proof your hiring strategy.   

Fix Hiring to Fix Turnover

When organizations rely on skills-based hiring, they improve job fit, set realistic expectations, and create clearer paths for growth. The result is a workforce that is more productive, more engaged, and more likely to stay. 

Retention does not begin after onboarding. It begins with how success is defined, how skills are assessed, and how hiring decisions are made. 

Take our assessment to benchmark your skills-based hiring adoption journey and learn how Harver can help you along the way. 

Picture of Khandice Long
Khandice Long

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