Cost of Employee Turnover: It’s More Than You Think

Not long ago, I expressed interest in taking on more responsibility at my company. I had held a director-level position before, so it wasn’t a stretch — I was ready, capable, and already contributing as the most senior person on the team. I spoke with HR, but nothing came of it. I also had a direct conversation with my manager. He acknowledged my contributions but made it clear he wanted me to stay where I was.  I decided to leave for a new opportunity. What surprised me most was not resistance, but indifference. Despite being well-regarded by senior leadership and deeply invested in the company’s success, my departure didn’t raise concern.

The reality? My manager had been in his role for a long time and was well-connected with company leadership. But that didn’t make him an effective leader. In the end, the company lost someone ready to contribute more, not because of a lack of talent, but because of a lack of action.

That experience stuck with me. Today, through ActionPoint Associates, I help organizations avoid that kind of loss by improving how they communicate, support, and encourage their teams. From capturing internal best practices to strengthening leadership messaging and building more effective internal communications, I work with companies to reinforce the culture and communication that keep good employees engaged — and prevent them from walking out the door.

As so many business leadership influencers note, employees leave their manager, not the organization. Often, when someone leaves a company, their manager will downplay it (and certainly not show that they had any part in it). According to research by the Society for Human Resource Management (SHRM), losing an employee comes at a significant cost to a business, not only in terms of direct recruitment and training expenses but also in the form of lost productivity, reduced morale, and the loss of valuable knowledge and cultivated relationships. It is estimated that the cost of employee turnover can range from 33% to 200% (of annual/hourly salary).

So, what are you doing to ensure you communicate well internally?