The Hidden Costs of Ignoring Employee Turnover Risk

Recent Gallup research reveals that turnover risk is at its highest in nine years, yet 42% of employee turnover is preventable.

According to the study, “Nearly a quarter of preventable turnover could be avoided if managers addressed organizational issues (13%) or problems with staffing, workload, or scheduling (9%)” (Tatel & Wigert, 2024). In my experience of working with leaders and their teams, these critical issues, if not addressed, can lead to employee burnout.

Why is this important?

Employee turnover is a costly challenge to a company. Gallup estimates replacement costs at:

• 200% of salary for leaders and managers
• 80% of salary for technical professionals
• 40% of salary for frontline employees

Leaders, can you afford to ignore rising employee turnover risk? Here are a few quotes from the report that underscore actions that could have prevented employees from exiting a business:

“Recognized my contributions to the team by matching my salary and title with those of coworkers doing the same work.” “Treated me with respect and shown concern for my well-being and its employees’ happiness.” “Allowed me the autonomy to do my job.”

Want to learn more about how to avoid preventable employee turnover risk? Connect with me on LinkedIn to discuss strategies for building leadership and team resilience.

Source: Tatel, C., & Wigert, B. (2024). 42% of Employee Turnover Is Preventable but Often Ignored. Gallup.

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