How Pandora Cut Turnover by 25%: Lessons in People Strategy and Manager Development

In the competitive world of retail stores and sales, Pandora’s recent transformation and success shows how smart hiring and training practices works in a world where others struggle to hire and retain younger workers.

Since 2021, the global jewelry giant has increased its revenue by 35% and achieved a remarkable 25% reduction in employee turnover—a feat that bolsters profitability and sets a new industry standard for employee engagement and retention.

Pandora’s story offers valuable insights for organizations that aim to create a thriving, loyal workforce. Three key lessons emerge from their approach: understanding young employees’ career readiness, investing in manager development, and making career paths visible from day one.

1. Young People Aren’t Always Ready for Promotion—And That’s Okay

Retail workforces, especially in global brands like Pandora, are often made up of a large proportion of young, part-time, or student employees. Byron Clayton, Pandora’s Chief HR Officer, notes that not everyone is immediately interested in climbing the management ladder.

Clayton explains, “We have a lot of people who work with us as students, a lot who work with us part-time—and they may not be interested in that career path at the moment.” This isn’t a lack of ambition but a reflection of life stage and priorities.

For those who do aspire to leadership, Pandora ensures they’re supported with the right tools and training, but there’s no pressure for everyone to move up immediately.

This understanding is crucial for HR leaders: pushing promotions on employees who aren’t ready can lead to disengagement or turnover. Instead, meeting employees where they are—and offering opportunities when they’re ready—builds trust and long-term loyalty (as I’ve noted in a previous post).

2. Investing in Good Managers Pays Off

Pandora’s success in reducing turnover is closely tied to its focus on manager development. The company recognizes that managers are the linchpin in hiring, training, and retaining entry-level staff. A strong manager doesn’t just oversee work—they coach, support, and develop their teams, directly impacting engagement and satisfaction.

To this end, Pandora launched the RISE program, which has already trained over 650 leaders across the organization. The program equips managers with the skills and mindset needed to lead inclusively and effectively.

Clayton emphasizes that “the career path itself is less valuable if the manager doesn’t actually spend the time, show the interest.” By investing in manager training, Pandora ensures that employees at every level feel supported and see a future for themselves within the company.

The results speak for themselves: manager retention rates have improved significantly, with overall manager attrition now dropping below 20%. This stability among managers creates a positive feedback loop—better managers mean happier employees, which in turn reduces turnover and boosts performance.

Additionally, Pandora has embraced technology to free up manager time. An AI-powered recruiting tool now saves managers up to 60% of the time they previously spent on hiring, allowing them to focus more on coaching and developing their teams. This not only improves the candidate experience but also gives managers more bandwidth to support their staff.

3. Showing Career Paths from Day One Boosts Retention

For employees who are ambitious and looking for growth, Pandora makes career development opportunities visible from the very start. When new hires join—whether in a store, factory, or at headquarters—they’re shown a roadmap of potential career paths. This transparency helps employees see beyond their initial role and imagine a future with the company.

Clayton describes the approach: “It’s not just ‘You’re here as an hourly salesperson in a store.’ You can actually see, ‘Here’s a roadmap for how I can build myself up to become a sales director or regional manager or have the opportunity to go into one of our regional offices.’”

This clarity around advancement is a powerful retention tool. Employees who see tangible growth opportunities are more likely to stay, invest in their own development, and contribute to the company’s long-term success. Pandora’s focus on career development has helped boost employee engagement rates into the top 5% of the industry.

A People-centric Approach Affects the Bottom Line

Pandora’s story is a testament to the power of people-centric strategy. By recognizing that not all employees are ready for promotion, investing deeply in manager development, and making career growth visible from day one, Pandora has built a culture where employees feel valued, supported, and motivated to stay.

The results—higher engagement, lower turnover, and stronger financial performance—show that these investments are not just good for people, but for business as well. As retail and other industries continue to grapple with high turnover and shifting employee expectations, Pandora’s approach offers a blueprint for sustainable, people-first growth.