The Economics of High Turnover

May 29, 2025

No company wants to be known as the “churn and burn” company. While people joining and leaving companies isn’t new, the culture that we find ourselves in has drastically increased the turnover rates of most companies. So now more than ever, the real challenge that every organization faces is ensuring employees remain working effectively and productively. There are many reasons why someone would leave an organization and some are largely unavoidable. But the operational hassle of finding and hiring someone else and the extra workload and responsibilities for the rest of the team is something that every company must be prepared for.

What are the negative impacts of a high turnover rate?

The impact of a high employee turnover rate goes beyond operational inconveniences, which can result in low employee morale. This may come from overworked employees who have increased their workloads and responsibilities due to a lack of workforce. New employees may suffer too, as they struggle to learn new job duties and procedures that are not within their job scope.

As this cycle keeps on going, this may result in the company having a more difficult time attracting and keeping high-quality talent. Companies can develop a reputation as a churn and burn type of business, making it harder still to find quality people. Hiring and training new employees is a costly proposition and include more than just direct monetary cost. It also has a direct impact on the company’s revenue and profitability.

In order to get a full picture of the total cost of employee turnover, organizations must examine both the direct and indirect costs necessary to fill the vacant position(s). While some factors may be obvious, others are often overlooked. Here is a list of factors that should be considered in the total cost of employee turnover within your organization:

1. Cost of time with the vacant role- While the position is unfilled, the cost of overtime rates for existing employees and for part-timers to fulfill the tasks needs to be reviewed. Organizations will have to pay for their effort in staying and working longer hours to complete a task. Doing so, it’ll increase the level of their productivity, but they also need to ensure that employees are not being overworked and burned out.


2. Cost to fill the vacant position- There are many individual costs incurred during the hiring process; it includes advertising costs, recruiter’s salary costs, third-party recruiter fees, sign-on bonuses, and employee referral fees. This search process also includes assessments, testing, background checks, and the cost of all time spent by employees involved during the interviewing process.


3. Onboarding cost- This includes the cost of the time of the hiring workforce to onboard a new hire. It consists of all the equipment set up and working hours involved in helping a new hire successfully transition into an organization like tools, orientation, training resources, and time investment from HR, the hiring manager, and IT.


4. Training cost- These are the training materials, resources, facilities that will be used (if applicable), training fees and staff prepped for training a new hire.


5. Customer frustration- If the work turnover was not properly executed, this can damage customer loyalty and prevent them from coming back. Every business protects its loyal and existing clients as they are the company’s biggest asset. A high turnover rate has a huge impact on the satisfaction of existing clients as they have established a certain set of standards and trust with the previous employee and they’ll need to rebuild that relationship again. 


6. Loss of institutional knowledge- When the experienced employees leave the company it becomes more difficult to preserve and transfer institutional knowledge. This causes inefficiency and leaves the new employees unequipped on how to do their jobs properly. New hires might also take time to finish their tasks that can harm the company’s productivity. 


7. New employee mistakes- As the new person is still adjusting to their new environment and job responsibilities, making mistakes is unavoidable. However, it may seem like a tiny error, but this could disrupt the business operation and value. Simple mistakes could include, sending an email to the wrong person, not meeting the project deadline, and misinterpreting the tasks which can result in business inefficiency. 


This list could go on but imagine hiring 10 new employees every year and having to consider all these costs. 

Let’s take a look at this business example:

A company with 50 employees and a 20% annualized employee turnover rate (10 resignations per year).

The full-time adult’s average weekly total earnings according to the Bureau of Labor Statistics (BLS)Â in the first quarter of 2022 was $1,037. When we add an additional 30% to this wage for the cost of employee benefits, this sums up to $1,348 per week. 


Assuming the turnover cost to be a year’s total remuneration for each employee, the total annual cost of turnover for this example business is $1,348 x 52 weeks x 10 employees = $700,960.00 per year.


As the example shown above, it’s better to invest a little in employee’s training and recognition and break down the main causes of a high turnover rate. This would save the example business almost $500,000 per year, less the costs of implementing the new strategy rather than hiring a new ones.

What could be the main causes of a high turnover rate?

There are many factors to consider what could be the main causes of this type of situation. One of the most common is compensation. If the employee is being paid too little, this will result in a high turnover rate. However, if they are being over-compensated, and it still does happen, this would suggest factors such as a lack of career advancement opportunities and good company culture. Opportunities for growth and development are essential to retaining good employees. If employees feel trapped in a never-ending cycle, they are most likely to look towards different companies for the chance to improve their status and income. Another factor to consider is the unrecognized hard work and contributions of an employee which could lead them to start looking elsewhere to have these needs met.


Of course, all of this cannot be blamed on the organization alone. Even if they are providing all the good opportunities and career growth, organizations might still find themselves in this kind of situation; that’s when the hiring process and strategy needs to be evaluated. Finding the perfect employee can be difficult; even if they are desperate to fill that position; picking a poorly matched employee will not benefit the organization.

Are there ways to reduce a high turnover rate?

An organization can start by having the managers talk about what’s really going on and what drives the employees to leave the company. They may conduct surveys, set up team or one-on-one meetings, and even coaching sessions.

Often times we hear, “Invest in your employees.”

So what does this really mean?

Invest in your employees

Employees want to know that they are a valued part of an organization. Being recognized for their hard work is also one of the keys to keeping them happy and motivated. They also play a big part on the company’s success, so investing in their happiness at work is vital for the business without giving out an expensive raise to retain them. Providing appropriate and well-considered feedback will help employees reflect on their performance, acknowledge their areas for improvement, and develop their skills. Lastly, having a good work-life balance. Encouraging the employees to take their full lunch break, and ensuring their workload is manageable enough so that they will not think that they are forced to have long working hours.



On a final note, a high employee turnover rate has a big impact on both employees and the organization. It’s crucial to know what drives the high turnover in an organization but what’s more important is that it is being addressed and someone is doing something about it to improve the organization’s culture.

By Meghan Riskowski February 20, 2026
If you want employees to think like owners, you must first lead like one. For founders, executives, and decision-makers scaling from 0 to 1,000 employees, this isn’t motivational advice — it’s operational strategy. As organizations grow, culture becomes harder to maintain. Communication layers increase. Alignment weakens. Engagement drops. And without intentional leadership, employees default to completing tasks instead of protecting outcomes. Rob Buffington’s leadership philosophy addresses one core truth: ownership cannot be demanded — it must be modeled. What Is an Ownership Mentality in Business? An ownership mentality is when employees make decisions based on what is best for the company — not just what is assigned to them. It shows up as: Proactive problem-solving Accountability without supervision Cost-conscious decision-making Initiative beyond minimum requirements Long-term thinking instead of short-term compliance For growing companies, this mindset reduces micromanagement, improves retention, and increases operational efficiency. Ownership culture is not about equity packages alone. It’s about perspective. Why Ownership Culture Matters for Companies Scaling from 0–1000 Employees In early-stage companies, ownership thinking is natural. Founders are close to operations. Communication is direct. Vision is visible. As companies scale: Leadership becomes layered Founders become less accessible Teams become siloed Cultural clarity weakens Accountability diffuses Without intentional leadership systems, growth creates distance — and distance erodes ownership. Companies that fail to reinforce ownership often experience: Increased turnover Performance plateaus Internal misalignment Founder burnout Reactive management cycles Ownership culture isn’t a “soft” leadership idea. It’s infrastructure for sustainable growth. How Authentic Leadership Builds an Ownership Mindset Rob emphasizes one foundational principle: genuine communication. Employees quickly recognize the difference between scripted leadership and sincere leadership. When communication feels performative, engagement drops. When it feels authentic, alignment grows. Authentic leadership requires: Time investment Active listening Consistency Transparency Vulnerability Clarity of expectations  Many organizations schedule town halls. Fewer invest in real dialogue. Ownership develops in unscripted moments — when leaders choose conversation over control. The ROI of Authentic Leadership Employee disengagement costs organizations billions annually in lost productivity and turnover. Research consistently shows that companies with high engagement levels experience: Greater profitability Lower absenteeism Higher retention Stronger customer satisfaction Authentic leadership is not about being approachable for optics. It is about creating an environment where employees feel trusted, informed, and aligned. And alignment drives performance. Leading Millennials and Gen Z with Clarity and Purpose Millennials and Gen Z now represent the majority of the workforce. Their expectations are reshaping leadership standards. They prioritize: Purpose Transparency Flexibility Impact Values alignment This shift isn’t entitlement — it’s evolution. Younger generations evaluate companies based on leadership credibility and mission clarity. If they don’t see alignment, disengagement is immediate. Organizations that clearly communicate their “why” gain discretionary effort. Those that don’t lose attention quickly. Why a Clear “Why” Drives Ownership A strong organizational purpose answers three critical questions: Why does this company exist? Why does our work matter? How does this role contribute to something bigger? When employees understand the “why,” their work shifts from obligation to contribution. Without it, daily tasks feel transactional. The “why” isn’t marketing language. It’s leadership discipline. If a company cannot articulate its purpose beyond profit, ownership culture will struggle to take root. From Employees to Owners: The Shift That Changes Everything Employees begin thinking like owners when: They understand the mission They see how their role contributes They feel respected They trust leadership They are included in meaningful dialogue When those conditions exist, the internal question shifts. From: “What do I have to do?” To: “ What’s best for the company?” That shift is transformational. Ownership Culture in Remote and Distributed Teams For companies building remote or hybrid teams, leadership clarity becomes even more critical. Distance amplifies communication gaps. Without intentional systems, remote employees can feel disconnected from mission and decision-making. Building ownership across distributed teams requires: Clear performance expectations Consistent leadership visibility Transparent communication rhythms Structured feedback systems Reinforced cultural values Ownership doesn’t happen by proximity. It happens by clarity. The Takeaway for Modern Leaders Ownership cannot be mandated. It must be inspired. Leaders often chase engagement tactics, performance systems, and retention programs. But at its core, ownership culture is built on something simpler: People invest where they feel seen. They commit where they understand purpose. They lead where they are trusted. If organizations want teams that act like owners, the starting point isn’t incentives — it’s intention. And when leaders consistently communicate with authenticity and clarity of purpose, they don’t just build better employees. They build resilient, scalable organizations grounded in shared belief. Frequently Asked Questions How do you create an ownership mindset in employees? By modeling accountability, communicating purpose clearly, investing time in authentic dialogue, and reinforcing how individual roles connect to company outcomes. Does ownership mentality improve retention? Yes. Employees who feel trusted, aligned, and connected to purpose are significantly more likely to stay and contribute at higher levels. Can ownership culture be built in remote teams? Absolutely — but it requires structured communication systems, leadership transparency, and consistent reinforcement of mission and expectations. Hiring talent is easy. Building ownership is intentional. For growing companies, the difference determines whether you scale smoothly — or struggle through every growth phase. At Gordian Staffing, we believe workforce strategy isn’t just about filling roles. It’s about building aligned teams capable of thinking beyond tasks and contributing to long-term growth. Because the strongest organizations aren’t built on supervision, they’re built on ownership. Ready to Build an Ownership Culture? Let’s build systems that support alignment, leadership clarity, and long-term performance. Book a strategy call with Gordian Staffing today and start building a team that doesn’t just work in your business — but thinks like owners inside it.
By Meghan Riskowski January 7, 2026
As the calendar turns and businesses plan for growth in 2026, many leaders are asking the same question: How do I build a stronger team without overwhelming myself or my internal staff? Burnout is no longer a personal issue — it’s a business risk. Overworked leaders, stretched teams, and unfilled roles can slow growth and impact performance. At Gordian Staffing , we help companies reduce burnout and scale smarter by connecting them with exceptional remote talent from Mexico and the Philippines . If your goal this year is to improve efficiency, protect your team’s energy, and build sustainable growth, these staffing strategies can help you start strong. 1. Reevaluate Your Hiring Priorities to Reduce Burnout A new year is the ideal time to reassess your hiring roadmap. Instead of asking “Who can we add later?” , ask: Which roles are draining leadership time? Where are bottlenecks causing stress or overtime? What work is pulling leaders out of strategic thinking? Filling high-impact support roles in administration, finance, operations, or customer care can immediately relieve pressure and allow your leadership team to focus on growth instead of daily fire drills. 2. Expand Your Talent Pipeline With Remote Staffing Remote staffing is no longer just about cost savings — it’s a proven burnout relief strategy. By hiring remotely, you can: Access skilled professionals beyond local labor shortages Scale support faster without overloading internal teams Maintain flexibility during growth phases A broader talent pipeline means fewer gaps, less stress, and more resilience as your business evolves. 3. Focus on Skills and Role Fit, Not Just Job Titles Burned-out teams often suffer because the right work isn’t being done by the right people. Skill-based hiring allows you to: Identify candidates who can immediately take work off your plate Avoid overlooking talent due to rigid title requirements Build roles that truly support your operational needs At Gordian Staffing, we prioritize skills, experience, and potential so clients get team members who create real relief — not just headcount. 4. Invest in Onboarding That Sets Teams Up for Success Hiring help only works if new team members are empowered to succeed. High-performing, low-burnout teams consistently invest in onboarding that includes: Clear expectations from day one Role-specific training and documentation Early check-ins and feedback loops Strong onboarding reduces turnover, speeds up productivity, and prevents leaders from constantly “backfilling” gaps. 5. Use Data to Make Smarter Staffing Decisions Staffing decisions should be guided by data — not exhaustion. Review: Workload trends Response times Overtime or task backlogs Repetitive work consuming leadership time When you use data to guide hiring, you add support exactly where it reduces stress and improves performance the most. 6. Build a Culture That Supports Remote Team Success Remote teams thrive when they feel connected, trusted, and supported. To strengthen remote culture: Encourage consistent communication and visibility Create simple collaboration rhythms Reinforce company values across all roles A healthy remote culture improves retention, engagement, and long-term team stability — all key to preventing burnout. 7. Partner With Remote Staffing Experts Who Understand Burnout One of the fastest ways leaders reduce burnout is by not doing hiring alone. Gordian Staffing acts as an extension of your HR and operations teams , supporting: Recruiting and vetting Onboarding and role alignment Ongoing team success Our goal is simple: help you build a team that supports your business — not one that adds more work to your plate. Build a Stronger Team in 2026 — Without Burning Out A new year brings the opportunity to reset how work gets done. By hiring thoughtfully, leveraging remote talent, and investing in onboarding and culture, you can: Protect leadership bandwidth Support your internal team Scale without burnout  Ready to build a stronger, more sustainable team? Let Gordian Staffing help you find skilled remote talent who are ready to contribute from day one. Contact us today to get started.
By Meghan Riskowski September 15, 2025
One of the first questions I hear from business owners exploring remote staffing is: “Will my clients still feel cared for?” It’s a valid concern. Client relationships are built on trust, clear communication, and personal connection. The truth is, when done right, remote staff don’t weaken these connections—they can strengthen them. At Gordian Staffing, we’ve built our process around ensuring remote support enhances—not diminishes—the client experience. Here’s how: 1. Start with Cultural Alignment  Strong client experiences begin internally. We invest time in understanding your company culture, communication style, and expectations. Every professional we place is trained and vetted to represent your brand seamlessly, ensuring your clients feel the consistency and care they expect. 2. Equip Teams with the Right Tools Clients should never notice the “distance” in remote work. With video conferencing, CRMs, and project management platforms, remote staff can be just as responsive and present as an in-office team. We guide businesses in deploying these systems, so communication remains effortless and natural. 3. Train for Client-Centered Service Skills are important, but connection is critical. Our placements are trained not only in processes but also in client engagement—from email tone to follow-ups—so every interaction reinforces the value you provide. 4. Foster Consistency and Relationship-Building Trust comes from repeated, positive interactions. By giving clients consistent points of contact with dedicated remote staff, familiarity grows. Remote employees can build relationships just as effectively as in-office teams when positioned as a true extension of your business. 5. Lean on Ongoing Support We don’t just place staff and walk away. Ongoing support ensures alignment, clear communication, and long-term success—creating stronger client relationships and reducing friction over time. Remote staffing doesn’t have to mean sacrificing personal touch. With thoughtful onboarding, cultural alignment, and the right systems, your clients continue to feel valued, while your business gains flexibility and access to a global talent pool. ✅ Strategic staffing can strengthen client relationships and protect your bottom line. Let’s talk → Contact Gordian Staffing
By Meghan Riskowski August 13, 2025
Diversity and inclusion are more than corporate buzzwords, they are essential for innovation, problem solving, and sustainable growth. For companies with remote team members, these principles matter even more. They help ensure collaboration, creativity, and trust across borders. At Gordian Staffing, diversity and inclusion are not optional values. They are central to how we recruit, onboard, and support our remote professionals in Mexico and the Philippines. Our goal is not just to fill roles, we focus on building high performing teams that bring fresh perspectives, stronger engagement, and a deeper connection to a global marketplace. Inclusive Hiring from Day One We believe that building strong, diverse teams starts with how we approach the very first stage of hiring. Our process begins with unbiased screening designed to focus only on what matters most: the candidate’s skills, experience, and ability to meet the needs of the role. We remove unnecessary barriers that can unintentionally exclude great talent, ensuring every qualified professional has an equal opportunity to shine. We actively recruit from a wide range of industries, educational backgrounds, and cultural experiences. This is not just about ticking a diversity box, it is about intentionally seeking out talent who can bring fresh perspectives, innovative problem-solving approaches, and valuable insights to our clients’ teams. Once a candidate has passed our rigorous vetting process, we go a step further. We provide tailored training that aligns their expertise with the client’s business processes, communication style, and expectations. By the time they begin working with a client, they are not just prepared to do the job, they are equipped to integrate smoothly into the company’s culture and hit the ground running. This thoughtful approach ensures that every placement starts on the right foot and sets the foundation for strong collaboration, mutual respect, and long-term success. Cultural Fit and Seamless Integration Matching skills is only part of the equation. True success depends on how well a remote professional integrates into a company’s culture and day-to-day operations. We take the time to work closely with our clients to understand their values, communication style, and team dynamics. This allows us to prepare new team members not just to perform tasks, but to become active, engaged contributors who feel welcomed and valued from the very start. We also provide guidance and support to ensure the transition is smooth for both the client and the remote team member. By fostering alignment with the company’s culture and expectations, we help remote team members quickly build strong relationships, communicate effectively, and contribute confidently to projects. This approach creates a sense of belonging, encourages collaboration, and sets the stage for long-term success for everyone involved. The Business Benefits of Diversity & Inclusion Companies that embrace diversity and inclusion see better innovation, stronger teamwork, and more adaptability in changing markets. Remote teams built with these principles are more engaged, more committed, and better equipped to deliver exceptional service. At Gordian Staffing, we help clients unlock these benefits while removing the stress of payroll, HR, and hiring admin. With Gordian Staffing, you do not just gain a team, you gain a team that represents the best of global talent, united by shared values and a drive to succeed. Partner with Gordian Staffing today to build a remote team that reflects your values and helps your business grow.
By Meghan Riskowski June 17, 2025
You could be curious and ask us, “Will we need to change the way we work?”. The answer is simple, no. 
May 29, 2025
As remote work continues to grow globally, many U.S. small and medium enterprises (SMEs) are tapping into Mexico’s talent pool to build remote teams. This trend benefits both U.S. companies seeking skilled professionals and Mexican workers looking for global opportunities. Let us explore why this arrangement is increasingly popular and how it is reshaping remote cross-border employment. 
May 29, 2025
The rise of remote work has transformed how we approach our jobs, with many now working from the comfort of home. While the idea of working in your pajamas or avoiding the daily commute sounds appealing, it comes with its own set of challenges. How can you stay productive, avoid distractions, and maintain a healthy work-life balance when your home is both your office and your sanctuary? In this blog, we’ll explore how to maximize productivity while working remotely and provide practical tips to help you stay motivated, organized, and balanced.
May 29, 2025
Finding the right career path can feel overwhelming. Whether you’re a recent graduate, a seasoned professional seeking a change, or someone re-entering the workforce, Gordian Staffing will guide you through the process. With our expertise and personalized approach, we can help you build a fulfilling career—especially in the growing realm of remote work.
May 29, 2025
Many companies are discovering the value of using staffing agencies to streamline their recruitment processes, access specialized talent, and grow their operations more efficiently. By partnering with Gordian Staffing, businesses can overcome hiring challenges, from managing workforce fluctuations to bringing in highly skilled professionals. Let’s look at some real-life examples of businesses that have successfully used Gordian Staffing to achieve remarkable results. 
May 29, 2025
Hiring a remote staff member offers clear advantages—greater flexibility, cost efficiency, and access to a wider talent pool. But long-term success hinges on what happens in the first 90 days. At Gordian Staffing, we go beyond simply placing top-tier remote professionals, such as CAMs, Staff Accountants, and Administrative Assistants. We partner with you to ensure a seamless onboarding experience that sets your new team member up for long-term impact. Here’s what you can expect when onboarding a remote team member with Gordian Staffing’s support: Before Day 1, the preboarding phase is your opportunity to create a strong first impression and lay the foundation for success. It is the moment to make your new remote employee feel welcomed, valued, and fully prepared. This phase focuses on essential logistics such as shipping equipment, setting up system access, and sharing a clear onboarding roadmap. It is also the perfect time to assign an onboarding buddy and start building an early rapport, laying the groundwork for a smooth and confident transition.