Cracking the Code on Employee Turnover

Claire Monroe

Hey everyone—welcome back to The Science of Leading. I'm Claire Monroe, and as always, I'm joined by the legendary—he probably hates when I say that—Edwin Carrington.Today, we’re cracking open employee turnover: why people leave, why it actually matters, and what we can really do about it.Edwin, I feel like this gets blamed on “people just want more money,” but… it’s rarely that simple, right?

Edwin Carrington

It’s almost never that simple. Compensation’s a factor, sure—but it’s rarely the root.More often, we see a pattern: poor onboarding, no clear growth path, lack of recognition, misaligned culture, and roles that don’t match the person.Zoom out, and what you’re really seeing is unmet expectations—on both sides of the relationship.

Claire Monroe

Yeah… that totally tracks.I mean, I’ve been in that spot—first week on the job and you’re just… drifting. No real intro. No one to ask questions.And then six months go by and you're like… “Wait, is there a plan for me here? Or am I just stuck?”That stuff builds up.

Edwin Carrington

Exactly. And it costs companies—badly.The Society for Human Resource Management puts the average replacement cost at about $4,700 per person. But when you include hidden costs—lost momentum, team disruption, ramp time—that number can multiply to three or four times their annual salary.Turnover isn’t just an HR stat. It’s a profit leak.

Claire Monroe

So if you’ve got, say, a hundred employees, each earning around sixty grand… even a handful of exits can spiral into six figures.But it’s not just about dollars, right? There’s also continuity. And… energy. You lose glue when people leave.

Edwin Carrington

Exactly. And here’s something most leaders overlook: new hires don’t hit their stride overnight. Some data shows it takes 12 to 24 months to reach full productivity.If you’re constantly replacing, you’re stuck in onboarding purgatory.I worked with a manufacturer years ago—mid-sized, solid team. Then they brought in a whole new layer of management… but didn’t introduce them. No communication. No alignment.Within months, they lost half their front-line crew.Morale tanked. Projects stalled. And recovery? That took years.

Claire Monroe

That’s brutal.And it’s not rare, right? I mean, when people aren’t seen or set up to succeed—whether it's onboarding or recognition—it just chips away.

Edwin Carrington

Happens all the time.And to complicate things, not all turnover is bad.There’s voluntary turnover—people choosing to leave—and involuntary, like layoffs. But the real distinction is in who you lose.If someone who’s not a great fit exits, that’s functional.But when top performers walk out? That’s dysfunctional turnover—and it stings.Studies from Gallup and LinkedIn show that managers are pivotal—nearly half of all exits cite a manager as the reason.So yes, pay matters… but culture, coaching, and growth? They’re the real levers.

Claire Monroe

So if your star people start drifting—or quitting—you can’t just write that off as bad luck.That’s a big ol’ flashing warning sign.

Edwin Carrington

Exactly. If you’re blaming luck… you’re avoiding accountability.Look at your onboarding. Your feedback loops. Your recognition practices.That’s where the story usually starts.

Claire Monroe

Alright—let’s pivot to solutions.Because I know some leaders are listening right now thinking… “Yikes. How do I stop the bleeding?”There’s actual research now, right? Like, proven stuff that helps people stay.

Edwin Carrington

There is. And what’s striking is—it's not gimmicks.Retention today isn’t about ping pong tables or casual Fridays.It’s about real, human support.Wellness programs, for example—nearly 90% of employees say they want their well-being supported. And the ROI? Companies get back over $3 for every dollar spent.Then there’s growth. Mentorships, training, clear pathways.According to LinkedIn, 94% of employees would stay longer if their company just invested in their development.

Claire Monroe

That’s… kind of amazing.Like, give people room to grow and they’ll actually want to stay? Who would’ve thought!But seriously—it seems so obvious, and yet…Most companies still default to cash bonuses or “Employee of the Month” plaques.Why is that?

Edwin Carrington

Because those are easy to measure and fast to execute.But motivation runs deeper.We talked about this in the episode on team motivation: recognition—real appreciation—moves the needle.People who feel valued are about 40% more likely to stay.Now layer in structured onboarding, honest feedback, and strong team building, and you’ve got a framework that works.Adobe’s State of Work report backs this up: 75% of employees want autonomy. 65% just want better tools. Not more tools—better ones. Tools that actually help.

Claire Monroe

That last bit hits me. Because I’ve been in jobs where the tech actually got in the way. Like, six platforms to do one task.But when you feel supported—like your voice matters, like your manager listens—it shifts the whole vibe.But that doesn’t happen by default. It takes… intention.Do you think it’s inertia? Or are leaders just not seeing the data?

Edwin Carrington

Both.Some leaders still think good pay = appreciation.Others don’t realize how costly disengagement really is.But the data is loud and clear: inclusion, responsiveness, and follow-through are the new retention strategy.

Claire Monroe

And culture. Can’t skip that.People want to feel like they belong, like their time matters.I think the stat is—what—77% would consider leaving if their well-being isn’t prioritized?That’s not a red flag… that’s the whole storm.

Edwin Carrington

Exactly.Retention isn’t about one big initiative—it’s about daily habits.It’s about trust, clarity, and action. The data’s there. The question is whether you’ll use it.

Claire Monroe

So… let’s get into the how do I know it’s working part.Say I’m a team leader and I want to actually track retention—not just guess.Where do I start?

Edwin Carrington

Start simple.Turnover rate is your baseline—how many people leave over a given time.But break it down. By team. By manager. By tenure. That’s where patterns emerge.Then bring in engagement scores—use short pulse surveys to monitor morale.One overlooked metric? Time-to-productivity.How long does it take a new hire to contribute at full capacity?It tells you a lot about onboarding quality and team dynamics.

Claire Monroe

I love that. And you don’t need some giant dashboard to do it, either.There are great tools out there—surveys that actually give feedback you can act on, learning platforms that show who’s growing…You start to see the story behind the stats.

Edwin Carrington

Exactly.And workforce planning tools aren’t just for retail or hospitality—they help any company see shifts in real time.One client of mine—an insurance firm—had high turnover for years.They scrapped their old-school annual reviews and shifted to real-time feedback. Transparent goals.Twelve months later? Turnover dropped dramatically.People felt seen—and stayed.

Claire Monroe

That’s what we’re aiming for, right?Retention that’s intentional. Not reactionary.And using tech as an enabler, not just a patch.

Edwin Carrington

Exactly.Retention isn’t a mystery—it’s measurable.Track what matters. Listen often. And—always—act with intention.

Claire Monroe

Couldn’t have said it better.And if you’re listening and thinking, “Okay, I want to apply this,” you can actually test out OAD’s behavioral assessment tools for free at o-a-d-dot-a-i.It’s one of the easiest ways to spot fit early and build stronger teams from the start.

Edwin Carrington

Simple, effective—and rooted in science. That’s the key.

Claire Monroe

Alright, that’s a wrap on this one.We’ll be back soon with more practical ways to lead smarter, build better teams, and—hopefully—make work feel a little more human.Edwin, always a pleasure.

Edwin Carrington

Likewise, Claire. Take care of your people, and the rest tends to follow.See you next time.

Claire Monroe

Bye for now.