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Transcript

Cracking the Code on Employee Turnover · The Science of Leading

• 0:00
  Hey everyone-welcome back to The Science of Leading.
• 0:02
  I'm Claire Monroe, and as always,
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  I'm joined by the legendary-he probably hates when I say that-Edwin Carrington.
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  Today,
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  we're cracking open employee turnover: why people leave,
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  why it actually matters, and what we can really do about it.
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  Edwin,
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  I feel like this gets blamed on "people just want more money," but... it's
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  rarely that simple, right?
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  It's almost never that simple.
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  Compensation's a factor, sure-but it's rarely the root.
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  More often,
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  we see a pattern: poor onboarding,
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  no clear growth path, lack of recognition,
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  misaligned culture, and roles that don't match the person.
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  Zoom out,
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  and what you're really seeing is unmet expectations-on both sides of
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  the relationship.
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  Yeah... that totally tracks.
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  I mean,
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  I've been in that spot-first week on the job and you're just... drifting.
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  No real intro.
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  No one to ask questions.
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  And then six months go by and you're like... "Wait,
• 1:01
  is there a plan for me here?
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  Or am I just stuck?"That stuff builds up.
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  Exactly.
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  And it costs companies-badly.
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  The Society for Human Resource Management
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  puts the average replacement cost at about $4, 700 per person.
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  But when you include hidden costs-lost momentum,
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  team disruption, ramp time-that number can multiply to three or four
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  times their annual salary.
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  Turnover isn't just an HR stat.
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  It's a profit leak.
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  So if you've got,
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  say, a hundred employees, each earning around sixty grand... even a handful
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  of exits can spiral into six figures.
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  But it's not just about dollars,
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  right?
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  There's also continuity.
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  And... energy.
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  You lose glue when people leave.
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  Exactly.
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  And here's something most leaders overlook: new hires don't hit their
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  stride overnight.
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  Some data shows it takes 12 to 24 months to reach full productivity.
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  If
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  you're constantly replacing, you're stuck in onboarding purgatory.
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  I worked
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  with a manufacturer years ago-mid-sized,
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  solid team.
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  Then they brought in a whole new layer of management... but didn't introduce
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  them.
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  No communication.
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  No alignment.
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  Within months, they lost half their front-line crew.
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  Morale
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  tanked.
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  Projects stalled.
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  And recovery?
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  That took years.
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  That's brutal.
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  And it's not rare,
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  right?
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  I mean, when people aren't seen or set up to succeed-whether it's onboarding
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  or recognition-it just chips away.
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  Happens all the time.
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  And to complicate
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  things, not all turnover is bad.
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  There's voluntary turnover-people choosing
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  to leave-and involuntary, like layoffs.
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  But the real distinction is in who you lose.
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  If someone who's not a great
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  fit exits, that's functional.
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  But when top performers walk out?
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  That's dysfunctional turnover-and it stings.
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  Studies from Gallup and LinkedIn
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  show that managers are pivotal-nearly half of all exits cite a manager
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  as the reason.
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  So yes, pay matters... but culture,
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  coaching, and growth?
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  They're the real levers.
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  So if your star people start drifting-or quitting-you
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  can't just write that off as bad luck.
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  That's a big ol' flashing warning
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  sign.
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  Exactly.
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  If you're blaming luck... you're avoiding accountability.
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  Look at your onboarding.
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  Your feedback loops.
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  Your recognition practices.
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  That's where the story usually starts.
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  Alright-let's
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  pivot to solutions.
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  Because I know some leaders are listening right now
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  thinking... "Yikes.
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  How do I stop the bleeding?"There's actual research now,
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  right?
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  Like, proven stuff that helps people stay.
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  There is.
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  And what's striking is-it's not gimmicks.
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  Retention today isn't about
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  ping pong tables or casual Fridays.
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  It's about real,
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  human support.
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  Wellness programs,
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  for example-nearly 90% of employees say they want their well-being supported.
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  And the ROI?
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  Companies get back over $3 for every dollar spent.
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  Then there's growth.
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  Mentorships, training, clear pathways.
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  According to LinkedIn,
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  94% of employees would stay longer if their company just invested in
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  their development.
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  That's... kind of amazing.
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  Like,
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  give people room to grow and they'll actually want to stay?
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  Who would've thought!
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  But seriously-it seems so obvious,
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  and yet...Most companies still default to cash bonuses or "Employee of
• 4:39
  the Month" plaques.
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  Why is that?
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  Because those are easy to measure and fast
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  to execute.
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  But motivation runs deeper.
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  We talked about this in the episode
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  on team motivation: recognition-real appreciation-moves the needle.
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  People
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  who feel valued are about 40% more likely to stay.
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  Now layer in structured
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  onboarding, honest feedback, and strong team building,
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  and you've got a framework that works.
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  Adobe's State of Work report backs
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  this up: 75% of employees want autonomy.
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  65% just want better tools.
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  Not more tools-better ones.
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  Tools that actually help.
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  That last bit hits me.
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  Because I've been in jobs where the tech actually got in the way.
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  Like, six platforms to do one task.
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  But when you feel supported-like your
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  voice matters, like your manager listens-it shifts the whole vibe.
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  But
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  that doesn't happen by default.
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  It takes... intention.
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  Do you think it's inertia?
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  Or are leaders just not seeing the data?
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  Both.
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  Some leaders still think
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  good pay = appreciation.
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  Others don't realize how costly disengagement
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  really is.
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  But the data is loud and clear: inclusion,
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  responsiveness, and follow-through are the new retention strategy.
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  And
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  culture.
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  Can't skip that.
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  People want to feel like they belong,
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  like their time matters.
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  I think the stat is-what-77% would consider leaving
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  if their well-being isn't prioritized?
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  That's not a red flag... that's the
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  whole storm.
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  Exactly.
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  Retention isn't about one big initiative-it's about
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  daily habits.
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  It's about trust, clarity,
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  and action.
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  The data's there.
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  The question is whether you'll use it.
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  So... let's get into the how do I
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  know it's working part.
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  Say I'm a team leader and I want to actually track
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  retention-not just guess.
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  Where do I start?
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  Start simple.
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  Turnover rate is
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  your baseline-how many people leave over a given time.
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  But break it down.
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  By team.
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  By manager.
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  By tenure.
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  That's where patterns emerge.
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  Then bring in engagement scores-use short
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  pulse surveys to monitor morale.
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  One overlooked metric?
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  Time-to-productivity.
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  How long does it take a new hire to contribute at
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  full capacity?
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  It tells you a lot about onboarding quality and team dynamics.
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  I
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  love that.
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  And you don't need some giant dashboard to do it,
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  either.
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  There are great tools out there-surveys that actually give feedback
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  you can act on, learning platforms that show who's growing...You start to
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  see the story behind the stats.
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  Exactly.
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  And workforce planning tools aren't
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  just for retail or hospitality-they help any company see shifts in real
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  time.
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  One client of mine-an insurance firm-had high turnover for years.
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  They
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  scrapped their old-school annual reviews and shifted to real-time feedback.
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  Transparent goals.
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  Twelve months later?
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  Turnover dropped dramatically.
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  People felt seen-and stayed.
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  That's what
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  we're aiming for, right?
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  Retention that's intentional.
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  Not reactionary.
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  And using tech as an enabler,
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  not just a patch.
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  Exactly.
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  Retention isn't a mystery-it's measurable.
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  Track
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  what matters.
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  Listen often.
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  And-always-act with intention.
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  Couldn't have said it better.
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  And if you're
• 8:18
  listening and thinking, "Okay, I want to apply this," you can actually
• 8:22
  test out OAD's behavioral assessment tools for free at o-a-d-dot-a-i.
• 8:22
  It's
• 8:28
  one of the easiest ways to spot fit early and build stronger teams from
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  the start.
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  Simple, effective-and rooted in science.
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  That's the key.
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  Alright, that's a wrap on this one.
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  We'll be back soon
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  with more practical ways to lead smarter,
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  build better teams, and-hopefully-make work feel a little more human.
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  Edwin,
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  always a pleasure.
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  Likewise, Claire.
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  Take care of your people, and the rest tends to follow.
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  See you next time.
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  Bye
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  for now.