Employee Turnover Cost: It’s More Than You Think

Not long ago, I expressed interest in taking on more responsibility at my company (I held a director-level position before, so it wasn’t a stretch), and I was ready, capable, and already contributing as the most senior member of the team. I spoke with HR and my manager, but nothing came of it. I decided to leave for a new opportunity, but what surprised and disappointed me was the indifference. Despite being well-regarded by senior leadership and deeply invested in the company’s success, my departure didn’t raise concern (even though others had also left recently).

The reality? Even though this manager had been with the company a long time, it didn’t make him an effective leader. In the end, the company lost employees ready to contribute and not because of a lack of talent, but because of a lack of action.

As many business leadership influencers note (Simon Sinek being my favorite), employees leave their manager, not the organization. Often, when someone leaves a company, a manager will downplay 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 relationships. It is estimated that the cost of employee turnover can range from 33% to 200% (of annual/hourly salary).

That experience stuck with me, and now 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.

So, what are you doing to ensure you communicate well internally and help leaders be good leaders?