What’s the Real Cost?
According to Gallup, U.S. businesses lose $1 trillion every year due to voluntary turnover, with individual replacement costs ranging from 50% to 200% of an employee’s salary for most roles, and higher for senior leadership.
| Role | Avg. Salary | Replacement Cost Estimate |
| Manager | $100,000 | $50,000 – $200,000 |
| Director | $150,000 | $75,000 – $300,000 |
| Executive | $250,000+ | $125,000 – $500,000+ |
What Drives These Costs?
Leadership turnover includes both hard and soft costs:
- Direct: recruiting fees, relocation, onboarding, training, and executive search firm contracts
- Indirect: lost institutional knowledge, reduced team performance, stalled initiatives, and cultural disruption
Together, these can severely impact strategic execution, innovation, and employee morale.
The ROI of Retention
Investing in proactive retention—through equitable leadership development, inclusive culture, and targeted career pathways—does more than save dollars; it preserves productivity and maintains business momentum. Fair360’s human capital analytics show that retention-focused initiatives can prevent hundreds of thousands in avoidable turnover costs per leader.
Get Your Free Retention Report
Take our 49-question Human Capital Survey and receive a free custom snapshot that shows:
- How your voluntary turnover compares to peers
- Estimated savings from improved retention
- Performance benchmarks across five key practices
Reduce Turnover. Protect Your ROI. Lead with Insight.
Fair360 helps HR leaders and executives align talent strategies with measurable business outcomes. See how your inclusion initiatives perform—and where you can improve.