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 February 17, 2026
Most CEOs focus on strategy, systems, and talent. But the biggest driver of performance is already in place: managers. Manager behavior influences about 70% of team engagement and results. What happens in everyday conversations matters more than perks, pay, or policies. Managers either multiply energy or drain it. Clear, supportive managers raise performance. Avoiding, inconsistent managers quietly lower it. The good news? Small habits make a big difference: Clarifying expectations Giving timely feedback Addressing issues early Reinforcing priorities These moments add up. Instead of telling managers to “motivate people,” try asking: Where might expectations be unclear? Where is inconsistency allowed? What conversation is being avoided? When managers improve just a little, results improve a lot. 👉 Join our 60-minute Leadership Conversation to explore how everyday manager habits quietly shape engagement and results.
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When engagement drops, many organizations reach for perks—rewards, programs, or incentives. These can create a short lift, but they rarely solve the real issue. Engagement starts with expectations. Most people want to do good work. What gets in the way isn’t motivation—it’s uncertainty. When priorities shift, roles feel unclear, or success means different things to different leaders, people disengage quietly. Leaders often don’t realize they’re contributing to this. Vague direction, inconsistent follow-through, or assuming “they already know” leaves teams guessing. Over time, guessing turns into frustration—and frustration turns into disengagement. Strong engagement cultures focus on leadership basics: Clear priorities Shared definitions of success Aligned expectations Consistent reinforcement When expectations are clear, people move with confidence. They take ownership, collaborate better, and stay engaged because they know where they’re headed. Perks can support engagement—but only after clarity is in place. 👉 Read our full article on Why Engagement Starts With Expectations to turn clarity into a real advantage.