Turnover Isn’t a Mystery
In 2024, the average employee turnover rate in the U.S. exceeded 47 percent, according to the Bureau of Labor Statistics. Industries like manufacturing, healthcare, and construction are experiencing even higher numbers. Yet too many companies still treat turnover like an unavoidable cost of doing business.
It’s not. Turnover is not about the economy or a “bad fit.” It’s a direct reflection of your leadership culture.
What’s Causing Turnover?
Too many companies are solving for symptoms instead of the root issue. The reality is, people leave when leadership fails to engage them, develop them, or connect their role to a meaningful purpose.
Here’s what I have come to observe as to why employees leave:
Leaders are focused on output, not people development.
Orientation is about paperwork, not relationships.
New hires feel like outsiders long after their first day.
Managers are promoted for performance, not coaching ability.
Recognition is rare; growth conversations are non-existent.
The cost of replacing one employee?
About 33% of their annual salary, according to the 2023 Work Institute Retention Report. But the hidden cost is even greater: cultural fatigue, decreased productivity, and a reputation that repels high performers.
The Fix Isn’t HR, It’s Executive Strategy
Executives must take ownership of leadership development as a strategic priority, not an optional HR initiative. If you don’t have a clear plan for how your company identifies, develops, and empowers leaders at every level, you are already behind.
Here’s what I coach companies to do to be successful:
A documented leadership development roadmap tied to business goals.
Defined leadership competencies customized to your culture.
A layered development approach for emerging leaders, mid-level managers, and senior executives.
Dedicated budget and internal champions for ongoing leadership growth.
Executive accountability for turnover and team engagement metrics.
Fix Orientation and You Fix Retention
Gallup reports that only 12% of employees strongly agree their company does a great job onboarding new hires. That’s not a gap. That’s a failure of leadership vision.
Here is the blueprint that I've guided companies to create a stronger orientation program:
Implement intentional 5, 10, 15, 45, and 60-day check-ins led by leadership, not just HR.
Assign real mentors and cultural ambassadors to every new hire.
Communicate mission, values, and performance expectations with clarity and consistency.
Measure onboarding effectiveness and make it part of the leadership scorecard.
Train Managers to Be Coaches, Not Controllers
According to DDI’s Global Leadership Forecast, 57% of employees quit because of their boss. Yet companies still promote based on performance rather than coaching potential.
Organizations that thrive are building coaching cultures by:
Embedding emotional intelligence, feedback, and listening into leadership training.
Holding leaders accountable for developing others, not just doing the work.
Providing 360-degree feedback reviews with coaching follow-up.
Creating safe spaces for leadership growth, reflection, and challenge.
Culture Is the Strategy
When people feel psychologically safe, valued, and seen, they stay. When they don’t, they leave quietly or loudly.
If you're an executive reading this, understand this truth:
Your culture is perfectly designed for the results you're getting. If those results include high turnover, disengaged teams, and lackluster performance, it’s time to change the design. That begins with leadership.
Executives must stop outsourcing leadership development to HR and start embedding it into their business plans. To retain top talent, you need a genuine strategy to develop exceptional leaders.