Editorial
Organizations underestimate the consequences of losing employees — whether through voluntary resignations or layoffs. Beyond the obvious financial and operational costs, an employee’s departure leaves a lasting impact on both the organization and those who remain. To thrive, leaders must be intentional about both retaining talent and managing organizational changes effectively.
Typical Costs of Employee Turnover
Leaders may think they’re familiar with the costs of employee turnover but may not be aware of all of them. These can include:
- Financial Costs — Replacing an individual employee can cost between half to twice their annual salary. This includes expenses related to recruiting, hiring, onboarding and lost productivity.
- Loss of Institutional Knowledge — Employees develop valuable expertise over time. When they leave, they take that knowledge with them, leaving gaps that can take months or even years to fill. The loss can be particularly significant for employees in specialized or leadership roles.
- Decreased Morale — Frequent turnover creates uncertainty, leading to disengagement and reduced team cohesion. Employees who see colleagues leaving may question their own job stability.
- Customer Disruption — Clients and customers often build strong relationships with employees. When those employees leave, customers can lose trust, which affects their satisfaction and loyalty.
- Lower Productivity — New hires take time to reach full productivity. High turnover means teams are frequently in training or transition, or even forming-and-storming stages, slowing down progress and stretching resources thin.
The Toll on Remaining Employees
While these factors are well-known, one of the most damaging yet often-overlooked costs of employee turnover is the emotional and mental toll it takes on those who remain — leading to stress, uncertainty and heightened risk of burnout.
When an employee leaves, the work doesn’t disappear. The employees left behind often have to absorb additional responsibilities, adapt to change and face emotional strain. This hidden cost can be just as damaging as the financial one and still affects the bottom line. Here are three key considerations:
1. The Guilt of Still Having a Job
One company I recall laid people off right before Christmas. While leadership had its reasons, the timing made the impact even more profound. Employees who remained not only felt the weight of losing valued colleagues but also struggled with the emotional burden of knowing their friends were facing financial uncertainty during an already stressful and family-centered season. That made it even harder for them to stay engaged and motivated.
2. Increased Stress From Organizational Change
Turnover leads to disruptions in workflows, reporting structures, and team dynamics. Employees are expected to navigate these changes while remaining productive. The uncertainty surrounding what’s next creates stress and instability. Research consistently indicates that workplace uncertainty is a leading cause of employee anxiety. A study found that employees affected by organizational changes are more likely to report chronic work stress compared with those who haven't experienced such changes. In a more recent example, TikTok employees reported heightened stress and burnout, leading some to take mental health leave. This is attributed to intensified performance evaluations and uncertainty about the company's future, exacerbating workplace anxiety.
3. Burnout From Increased Workload
With fewer employees to share the workload, those who remain are often expected to pick up the slack. This can lead to longer hours, increased pressure and, ultimately, burnout. A study by Gallup had found that employees who experience high levels of burnout are 63% more likely to take a sick day and 2.6 times more likely to be actively seeking another job.
If left unaddressed, these challenges can create a vicious cycle — employees become overwhelmed, disengage and eventually leave, perpetuating the cycle of turnover.
How to Plan for and Mitigate the Impacts of Losing Employees
The key to minimizing the hidden cost of losing employees is proactive planning. Leaders must support both departing employees and those who remain to maintain stability and engagement.
Support Exiting Employees
Actively assist employees in finding new roles. Providing outplacement services, career coaching and networking opportunities makes a difference. Many organizations have also developed internal initiatives to connect departing employees with job opportunities, both within the company and externally.
Beyond career support, financial and emotional assistance is equally important. Offering fair severance packages, access to counseling and maintaining transparent communication helps ease the transition for departing employees and provide much-needed stability during a challenging time.
Additionally, learn from their experience by conducting thoughtful exit interviews to offer valuable insights and highlight areas for organizational improvement. Understanding these factors help leaders create a more supportive and resilient workplace for those who remain.
Understand the Real Scope of Their Role
A job description often only scratches the surface of an employee’s actual contributions. It’s essential to understand and document the full scope of their role. This includes recognizing their informal influence. Were they the go-to person for certain challenges? Did they act as a mentor, problem-solver, or connector within the team or organization?
Beyond their influence, understanding their workflow and responsibilities is critical. Rather than simply redistributing tasks among remaining employees and overloading them, leaders should develop an intentional plan to delegate or automate essential functions. This ensures continuity while preventing burnout and keeping teams efficient. And remember, not everything needs to be redistributed. It is a chance to look at what is critical and what will need a more thoughtful plan.
Support Employees Who Remain
To maintain stability, performance and engagement, leaders must provide transparency, emotional support and practical solutions to prevent burnout.
Transparency: Address the Situation Head-On
Uncertainty fuels anxiety, and when turnover occurs, employees need clear and honest communication. Leaders should openly discuss what is happening (to the extent possible), why changes are being made, and what to expect moving forward. While leaders may not always be able to share every detail, they can always offer clarity on how they will approach and handle the situation. When employees feel informed, they experience higher levels of trust, engagement and confidence in the company’s direction. Unknowns can send the mind wandering down all kinds of rabbit holes — often worse than reality!
Offer Emotional and Psychological Support
Losing colleagues can feel deeply personal, as employees often form strong professional and personal bonds. Acknowledging this loss and providing support is essential. Employee assistance programs, counseling services or other tools help individuals process these transitions. Additionally, creating open forums or team meetings allows employees to voice concerns, ask questions, and be reassured in a supportive environment. But you actually have to listen authentically and respond to feedback — it doesn’t work if you are just checking a box.
Prevent Burnout by Equipping Employees for Success
Rather than simply expecting employees to “do more with less,” organizations should proactively invest in strategies to help them manage the increased demands effectively.
- Invest in development: When workloads rise, employees need tools to manage stress and stay productive. These include resilience training and mental well-being programs to strengthen employees’ capacity to help them handle workplace challenges.
- Support employees in building energy reserves: To perform when unexpected or chaotic events hit, employees need energy reserves. Encouraging daily habits that support mental clarity, emotional balance, and physical vitality help people recharge and stay resilient. Leaders should model and promote practices such as taking micro-breaks, recognizing small wins, maintaining boundaries and setting priorities so employees aren't constantly running on empty.
- Ensure workloads are realistic: Fewer people may not be able to do as much. Leaders should reassess expectations, and redistribute tasks thoughtfully.
Build a Long-Term Strategy for Sustainable Talent Management
Instead of constantly reacting, organizations must shift toward planning. This includes:
- Prioritize retention by investing in employee engagement, career development and well-being initiatives.
- Build a succession pipeline so trained individuals are ready to step when key employees leave.
- Create a culture of adaptability, so inevitable changes, while disruptive, do not derail business operations.
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By taking these steps, organizations not only support their remaining employees but build a resilient workforce prepared for the future.
Editor's Note: Read more about what happens when employees leave:
- Leave Them Better Than You Found Them — Every company wants departing employees to leave as brand ambassadors. Here's what organizations need to do for that to happen.
- Survivor's Guilt and Other Ways Layoffs Affect the Employees Left Behind — The worst thing leaders can do after deciding to conduct layoffs is to respond with a knee-jerk reaction: redistribute the workload and hope for the best.
- Stop Attrition Before It Starts — HR leaders can use employee data they already have to prevent their best people from leaving. Here's how.
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