How many of your people have left in the last year…five years…ten years? Even if it’s just one, there’s a price to pay.
And how many of your current employees are fully engaged in their work?
According to a January 2025 Gallup Report, only 31% of U.S. employees are actively engaged, while 17% are actively disengaged, the worst level in a decade.
Employee retention is one of the most important leadership challenges today. Let’s explore the real cost of low retention, why employees leave and practical ways to fix it. A great goal: pick one “fix” and apply it this week.
The Hidden Cost of Turnover
The direct cost of replacing an employee ranges from 50% to 200% of their annual salary, depending on your industry. That includes recruiting, onboarding, licensing and training.
But those are just the visible costs. The hidden ones include:
- Lost time and productivity
- Strained customer relationships
- Loss of institutional knowledge
- Weakened morale
Every departure takes a piece of your culture and momentum with it.
Why Do Good Employees Leave?
Many companies conduct exit interviews, but results are mixed. Occasionally, they reveal deep issues but more often, they turn into vent sessions about poor management.
You’ve probably heard the saying:
“People don’t leave companies…they leave managers.”
From my work coaching leaders in organizations of all sizes, I’ve found two underlying reasons people leave:
- Circumstances – isolation, anonymity and lack of development
- Management style – poor communication, intimidation and lack of purpose
Part 1 focuses on circumstances; Part 2 will address management style.
Isolation
Remote and hybrid work are now the norm. While flexible work has its advantages, it often breeds disconnection and loneliness. Without casual hallway conversations or impromptu brainstorming, collaboration and camaraderie suffer.
Ask yourself: How isolated are your people really?
Anonymity
When employees feel invisible, engagement plummets.
Gallup found that only 39% of employees strongly agree that someone at work cares about them as a person (down from 47% just four years ago).
When people don’t feel known, they’re less loyal and more open to “greener grass.”
Meaningful relationships at work drive belonging and retention.
Ask yourself: Are your people known…really known at work?
Lack of Development
Your best people won’t stay stagnant. They crave growth, learning and opportunity.
Yet only 30% of employees report that someone at work encourages their development.
Without a visible career path or professional growth opportunities, your high performers will look elsewhere, often finding organizations that invest in their potential.
Ask yourself: Are you actively developing your people?
How to Fix It:
Create a Mentoring Program
Pair newer employees with experienced team members. Choose mentors carefully…replicate your best people, not your weakest links.
Provide starter discussion questions, set expectations and define a clear timeframe (3–6 months) so it feels intentional. End with mentee feedback to identify your top mentors.
Build a “Wall of Photos”
Show who your people are beyond their job titles. Invite employees to share a photo of them doing something meaningful outside of work…golfing, hiking, volunteering, family, art, etc.
Whether posted physically or virtually, this builds human connection and sparks real conversations.
Conduct “Stay Interviews”
Don’t wait for exit interviews. Instead, ask your best people why they stay and what would make work even better.
This simple shift turns retention into a proactive, relationship-building practice.
Invest in Professional Development
Create an internal growth program that shows you care about your people’s progress, whether or not they stay forever.
This could include leadership coaching, workshops, mentorship or online courses.
This reminds me of the CFO who asked, “What if we invest in our people and they leave?” And the CEO’s response, “What if we don’t and they stay?”
While no one likes seeing their best people leave, it takes some of the sting out when the reason is to expand their experience and not because the circumstances within your company drove them to it.
Final Thought
Isolation, anonymity and stagnation are silent killers of engagement.
Fixing them takes intention, not perfection.
Start with one small change this week.
And I’d love to hear your ideas of how you have addressed these challenges in your organization? Comment below and share what’s worked.
Watch for Part 2, where we’ll explore how management style can drive your best people away and what to do instead.
