Did you know that US businesses lose $1 trillion annually to employee turnover? (Source: Gallup Report on Employee Engagement) This staggering figure highlights a critical problem facing companies across industries: the employee turnover crisis.
Every time an employee leaves, the costs pile up—from recruitment and onboarding to lost productivity and team disruption. But the good news? These losses are preventable with the right strategies and tools.
Why Does Employee Turnover Cost So Much?
The employee turnover crisis doesn’t just affect HR—it hits the bottom line. Let’s break down the costs:
Recruitment Expenses
Hiring new employees involves job ads, recruiter fees, and HR time spent screening and interviewing candidates. For mid-level roles, this can cost £1,000–£10,000.
Onboarding Costs
New hires need training and time to ramp up to full productivity. The average onboarding process costs businesses £5,000–£15,000 per employee.
Lost Productivity
A vacant role means delays, overworked teams, and missed deadlines, costing companies up to £5,000 per month in lost revenue and efficiency.
Team Disruption
When someone leaves, morale takes a hit. Remaining employees often face increased workloads, leading to burnout and even more turnover.
Risk of Hiring the Wrong Replacement Rushing the hiring process often leads to mismatched hires, multiplying costs when they leave or underperform.
The Root Causes of Employee Turnover
The employee turnover crisis often stems from preventable issues:
Lack of growth opportunities – Employees want career development and progression.
Misalignment with team culture – A poor cultural fit can lead to disengagement.
Role mismatch – People thrive when their natural strengths align with their responsibilities.
Poor leadership – Leaders play a huge role in employee satisfaction and retention.
Compensation issues – Pay alone isn’t everything, but it matters when combined with the above factors.
How to Address the Employee Turnover Crisis
Reducing employee turnover starts with understanding your people—their strengths, motivations, and team fit. Here’s how you can take action:
1. Invest in Employee Retention Strategies
Retention is always cheaper than replacement. Focus on creating growth paths, fostering engagement, and addressing concerns before they escalate.
2. Align Roles to Strengths
When employees are in roles that match their natural abilities, they’re more productive and satisfied.
3. Leverage Tools Like Tema App
Tema App helps you tackle turnover by providing insights into your team’s dynamics and alignment.
It helps you:
- Identify early signs of disengagement.
- Align roles with employees’ strengths and personality fit.
- Build a cohesive team culture where people want to stay.
Tema App’s data-driven approach empowers leaders to make smarter hiring, retention, and team-building decisions—saving time, money, and momentum.
The Real Cost of Inaction
The employee turnover crisis isn’t going away on its own. Every unaddressed resignation, mismatched hire, or disengaged team member adds to the trillion-dollar problem. But businesses that take a proactive approach—investing in tools and strategies to retain their people—can turn this challenge into an opportunity.
💡 Don’t just react to turnover—prevent it.
👉 Visit mytema.app to learn how Tema App can help you solve the employee turnover crisis and build a stronger, more aligned team today.