How a commercial company in Sofia reduced employee turnover by 21% in one year

About the Company Company:

Mid-sized trading company specialising in fast-moving consumer goods Employees: 60 (before the project) Industry: Trade and Distribution Duration: 12 months (2024–2025)

The Challenge The company had strong sales and stable clients, but a chronic problem with staff turnover — particularly among sales representatives:

— High turnover: 35% annually, costing over 80,000 BGN per year — Demotivated team: The constant departure of colleagues was creating insecurity and demotivation — Client losses: When sales representatives left, client relationships were disrupted — Overloaded managers: Spending more time training new people than developing the business — Lack of clarity: Employees had no clear understanding of their development opportunities

Our Methodology

Diagnostic Phase: — Anonymous surveys among current employees — Exit interviews with departed employees — Analysis of the compensation and bonus system — Assessment of team dynamics and management style — Benchmarking against competitors in the industry
Strategy Development: — Identification of the root causes of employee departures — Development of an individualised retention plan — Definition of key success indicators

Implementation Step 1: Understanding the Problem The analysis revealed a surprising finding — the main reasons for leaving were not salary, but: — Lack of recognition and appreciation — Unclear career development opportunities — Poor communication between managers and teams — Lack of a sense of belonging to the company

Step 2: Recognition and Development Programme — Introduction of a monthly recognition programme for top performers — Development of clear career paths for each position — Reduction of the promotion cycle from 24 to 12 months — Introduction of quarterly development conversations between employees and managers

Step 3: Manager Training — Communication skills development programme — Training on effective feedback — Introduction of regular team meetings and open dialogue — Development of an early identification system for at-risk employees

Step 4: Building Team Culture — Team building programme to strengthen team bonds — Introduction of internal events and initiatives — Creation of employee feedback channels

Results Turnover: reduced from 35% to 14% annually Cost savings: over 48,000 BGN annually Employee engagement: increased from 42% to 76% Internal promotions: 4 employees received promotions Satisfaction with management: increased from 38% to 71%

Additional Outcomes: — 25% reduction in sick leave — 3 of the company's top clients noted improved service — The company began receiving job referrals from current employees