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The Hidden Cost of Employee Turnover and How Exit Interviews Help Reduce It:

Did you calculate the true cost of your last resignation? That departure likely had a bigger impact than it seemed.

Most organizations underestimate the real cost of employee turnover. Beyond replacement expenses, the impact compounds quickly. Small organizations lose an estimated $125K–$200K annually replacing staff. Midsize organizations spend up to $2.4M. Large organizations can lose as much as 200% of an employee’s salary, along with missed deadlines, reduced productivity, and the loss of institutional knowledge. Turnover also contributes to job errors, lost sales, and dissatisfied customers, that costs rarely reflected on balance sheets.

One of the most effective tools for reducing employee turnover is the employee exit interview. An exit interview is a structured process designed to capture honest employee feedback at the point of departure. When conducted consistently, exit surveys reveal why employees quit, surface recurring workforce issues, and enable meaningful exit interview analysis.

When this insight is translated into clear exit interview reports, HR teams can respond faster, improve employee retention, and reduce repeat exits.

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