How Much is Employee Turnover Costing You?

Cathie Leimbach • January 14, 2025

Employee turnover is more expensive than you might think. Replacing a worker can cost between 40% of annual pay for entry-level positions and 200% of a senior executive’s salary. These costs include recruiting new hires, lost company knowledge, training and time for the new hire to get up to speed, and the ripple effects of leaving customers underserved.


Shockingly, about half of the workforce is quietly looking for new jobs. Why do they leave? Poor leadership is the top reason—70% of employees who quit cite negative experiences with their managers. 40% of the employees who quit said that with better support from and communication with their manager, and more action on their concerns, they likely would have stayed. Meanwhile, only 30% leave primarily because of pay or benefits.



Turnover doesn’t just hurt morale; it impacts your bottom line. Imagine the cost of losing even one college-educated employee. Investing in leadership development could not only improve retention but also pay for itself by keeping key talent on board.

How much is turnover costing your organization? If you’re curious, try our free Cost of Turnover Calculator. Chances are that reducing turnover by providing highly effective leadership training could be the smartest investment you make this year—one that pays off big time by keeping your best employees engaged, committed, and productive.

By Cathie Leimbach December 9, 2025
In Erica Dhawan’s book, Get Big Things Done, she defines Connectional Intelligence as the ability to combine knowledge, networks, and relationships to drive meaningful results. In today’s busy workplace, it’s not just what you know—it’s how well you connect that turns good ideas into big outcomes. Strong Connectional Intelligence within a team strengthens workplace morale and productivity by impacting four key attributes of high-performance cultures: Value Visibly – People perform better when they know their contributions matter. Leaders who highlight strengths, acknowledge effort, and celebrate progress create a culture where great work becomes contagious. Communicate Carefully – In an age of nonstop messages, clarity is a competitive advantage. Thoughtful communication reduces confusion, prevents conflict, and ensures that everyone moves forward with shared understanding. Collaborate Confidently – Connectional Intelligence flourishes when people feel empowered to contribute. Confident collaboration means inviting diverse perspectives, leveraging individual superpowers, and creating space for smart problem-solving. Trust Totally – Trust is the anchor of all high-performing teams. When leaders show reliability, transparency, and empathy, people take risks, share ideas, and stay aligned toward common goals. Connectional Intelligence helps teams innovate faster, break down silos, and accomplish what truly matters. Want to learn more? Visit Erica Dhawan’s website to explore her full body of work and deepen your understanding of Connectional Intelligence.
By Cathie Leimbach December 2, 2025
When people hear “psychological safety,” they often imagine a workplace where everything feels easy and conflict-free. But that’s not what true psychological safety is — and it’s not what high-performing teams need. As leadership expert R. Michael Anderson points out, work and life include tough days, unexpected problems, and moments that stretch us. A psychologically safe workplace doesn’t remove those realities. Instead, it gives people the confidence and support to face them. A safe workplace is one where employees can struggle without fear of embarrassment… try new skills without being put down… ask questions, make mistakes, and keep moving forward. It’s a place where people know their leader is behind them — not by preventing discomfort, but by helping them learn through it. Psychological safety isn’t about coddling or creating a predictable bubble. Real safety looks like this: · You may hear difficult feedback, but it helps you grow. · You are encouraged to take risks, and supported when you slip. · You are stretched beyond your comfort zone, and guided along the way. When leaders create this balance — support plus stretch — people build resilience, confidence, and higher performance. To explore more of these ideas, visit R. Michael Anderson's website .