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One Change That Made This Company Reduce Employee Turnover from 18% to 5%

A Real Transformation Story with PSM People System

Why was this company able to reduce turnover from 18% to just 5% in only 6 months?

18% → 5%
Employee Turnover in 6 Months

The Challenge: High Employee Turnover

The mystery behind high turnover: Why was this company experiencing such high employee turnover rates of 18%?

The owner finally asked, "Are they leaving because of salary... or because the work system doesn't support them?"

Finding the Root Cause

When the PSM team entered, we discovered the truth, but it was simple:

  • Employees weren't incapable, they were confused.
  • Everyone had their own way of completing their work.
  • No work standards, no clear direction to follow.
  • Ultimately, hard work never felt enough, and motivation slowly faded.

The PSM Solution: Building a People System

We started with Work Process Mapping, breaking down every job to the daily task level.

From there, we built a Job Standardization and Training Framework system that was clear:

Now every employee knows: what must be achieved, and how to achieve it.

Beyond Standards: Building a Mentoring Culture

We also helped HR create a Mentoring & Coaching System at the supervisor level.

Supervisors no longer just give orders, but become trainers who ensure their teams grow.

Work culture shifted from "working fast" to "working with direction".

The Results: Quick and Real

📉18% → 5%
Turnover reduced in 6 months
📈 +35%
Productivity increased
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Employees feel more valued because the system supports their growth
Work now feels meaningful and clear

Not because of bigger bonuses, but because the work now feels meaningful and clear.

Key Insight

An old employee said, "I used to work hard but often made mistakes. Now I know the work standards and targets, it feels much fairer."

Sometimes, people don't need more motivation. They just need a system that helps them win.

Lessons from This Case:

💡 People don't leave good jobs, they leave systems that empower them.

If your company is experiencing high turnover, ask yourself: Is it a people problem, or a system problem?


Ready to Transform Your Organization?

Let PSM help you build systems that empower your people and drive real, measurable results.

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