The Invisible Cost of High Turnover

Turnover is often dismissed as an unavoidable reality, a “cost of doing business.” In truth, it’s rarely priced accurately, and the silent toll it takes on an organization can be staggering. While most leaders think about the obvious, posting a job, interviewing, hiring, those are just the surface expenses. In the staffing world, I’ve seen firsthand how the real cost of replacing someone often lands between 30% and 100% of their annual salary.

That figure includes the obvious hard costs, recruiter fees, advertising, and HR time, as well as the softer but equally damaging losses: lower productivity while the role sits vacant, the time it takes to train a replacement, mistakes made during ramp-up, and the hit to client relationships when a familiar point of contact disappears. And those costs multiply quickly when turnover is constant. I once worked with a luxury lifestyle brand that churned through three executive assistants in 18 months, spending close to $200,000 in fees, downtime, and missed opportunities, yet they still resisted fixing the workload and culture that drove people out.

The cultural cost is harder to measure but often even more damaging. Constant churn sends a clear signal: this is not a place people stay. I once consulted for a high-profile entertainment firm where the longest-serving assistant had been there six months. They couldn’t figure out why industry contacts were slow to return calls, until it became clear that clients didn’t see the point in investing in relationships that would vanish by the next quarter.

Perhaps the most underestimated loss is institutional knowledge. Every departure takes with it years of context, nuance, and relationship history that can’t be captured in a handoff. I watched one household staff lose three key members in a year, and small but critical details, how the principal liked his travel packed, the exact timing of dinner service, vanished. Those “minor” misses chipped away at satisfaction and ultimately led to more replacements.

The alternative, investing in people, is almost always cheaper than replacing them year after year. That means fair pay, realistic workloads, and strong leadership. In high-pressure industries, retention doesn’t mean removing stress, it means managing it so top performers stay engaged, not burned out. I’ve seen companies turn reputations around in under a year simply by adjusting expectations and valuing their people. When staff are treated as long-term assets rather than disposable resources, you protect not only your budget but also your culture, your brand, and your future.

Grapevine’s Rules for Retention

Practical, proven steps to keep your best people from walking out the door.

1. Pay Fairly  and Transparently

Retention starts with competitive, market-aware compensation. If you’re paying below industry norms, you’re funding your competitors’ recruitment efforts.

2. Manage the Workload, Not Just the People

High performers don’t burn out because they can’t do the job, they burn out because the job isn’t sustainable. Balance headcount with output expectations.

3. Invest in Training and Development

A clear growth path, skill-building opportunities, and cross-training keep employees engaged and future-focused rather than job-hunting.

4. Protect Institutional Knowledge

Document processes, client preferences, and critical “unwritten rules” so the loss of one person doesn’t erase years of expertise.

5. Foster a Culture of Recognition

Consistent, genuine acknowledgment of contributions, both big and small, creates loyalty far more effectively than any one-off perk.

6. Exit Interviews Are Only the Start

Use them to identify patterns, but don’t wait for someone to quit to ask what’s working and what isn’t. Create an ongoing feedback loop.

Thank you!