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 April 7, 2026
Most leaders don’t struggle because they don’t care. They struggle because engagement feels hard to influence. But when people are engaged, the impact is hard to ignore: 18% higher sales 23% higher profitability 70% higher wellbeing These differences come from comparing the 25% of organizations with the strongest employee engagement to those in the bottom 25% (Gallup). And the stakes are bigger than most realize— disengaged employees cost U.S. organizations nearly $2 trillion in lost productivity each year (Gallup). This isn’t about perks or programs. It’s about how people are led every day. Engaged teams are clearer on expectations. They feel supported. They know their work matters. And most importantly—those conditions don’t happen by accident. They’re created in conversations: Clarifying priorities Reinforcing what good looks like Checking for understanding Following through consistently Small leadership habits drive big business outcomes. A question to consider: Where could stronger day-to-day leadership conversations improve results in your team? 👉 Join our next 60-minute Leadership Conversation: Inspiring High Performance — Monday, April 13 th at 3:00 PM ET (this is not a webinar) It’s a small-group discussion with other leaders looking at a simple question: What’s actually driving engagement—and what’s quietly holding it back? If a shift in leadership could impact sales, profitability, and wellbeing… it’s worth exploring what that might look like in your world.
By Cathie Leimbach March 31, 2026
Most leaders don’t struggle because they lack knowledge. They struggle because leadership opportunities show up in daily conversations —and those moments are easy to miss. The difference between average and high-performing teams often comes down to four leadership behaviors: 1. Build Trust Through Everyday Conversations Trust is built in small moments. Listen to concerns Ask thoughtful questions Follow through Address issues quickly and respectfully 🤝 Trust grows through consistent, everyday conversations. 2. Reinforce What Good Looks Like People repeat what gets recognized. Be specific: “I appreciated how you handled that client issue quickly—that made a difference.” 🔒 Clarity + recognition = stronger performance. 3. Address Problems Early—Kindly and Clearly Avoiding issues creates bigger ones. Keep it simple: What was expected? What happened? What needs to change? 👥 Clear, timely conversations reduce drama and improve results. 4. Support People So They Can Succeed Your role is to help your team succeed. Clarify priorities Remove obstacles Provide resources Coach progress 🔍 When people have clarity and support, performance follows. The Real Lever: Conversations None of this requires new systems. It happens in everyday interactions— 1:1s, quick check-ins, and follow-ups. Better conversations → better results. Quick Reflection Which one would make the biggest difference for you right now? Build trust Reinforce performance Address problems early Support success 👉 Join our next 60-minute Leadership Conversation – Inspiring Employee Performance on Monday, April 6, at 3:00 pm ET. Not a webinar. A working session with other leaders looking at what’s actually happening on their teams—and how small shifts in daily conversations change performance fast. If you're curious what even a 10% shift in consistency could look like for your team… this is a good place to start.