What Every Leader Should Know About Employee Turnover Cost

Employee turnover isn't just an HR challenge, it's a significant financial burden. In 2025, SHRM says that replacing an employee can cost 50% to 200% of their yearly salary. This depends on the job and industry.

When burnout causes employees to leave, the costs go beyond hiring and training. It also affects productivity, morale, and business performance.

Organizations can take proactive steps to reduce burnout, lower employee turnover cost, and foster a culture where employees thrive.

Why Employee Burnout Equals Turnover

Burnout is more than just being tired. It is a long-term state of stress. This can lead to feeling emotionally drained, cynical, and less effective at work.

Deloitte's research revealed that 77% of employees experience burnout at their jobs. This often leads to disengagement and quitting. The consequences are far-reaching:

• Lower engagement: Disengaged employees contribute less to team initiatives and are less invested in organizational goals.
• Increased healthcare costs: Chronic stress is linked to higher rates of absenteeism, workplace injuries, and long-term health issues.
• Higher turnover: Disengaged employees are more likely to leave, driving up recruiting, hiring, and training costs.

When employees leave, organizations don't just lose headcount, they lose institutional knowledge, team stability, and project momentum. Remaining people may feel overburdened, creating a ripple effect of stress and disengagement.

The Ripple Effect of Turnover

Employee turnover doesn’t just hit your hiring budget, it reverberates through every part of an organization.

When someone leaves, the impact extends far beyond the open role. Team dynamics shift.

Workloads increase. Morale dips. And, often, the pressure on remaining employees leads to more burnout — and more turnover.

Recent Gallup data shows that 42% of employees who left their jobs last year felt their manager or company could have helped keep them. That’s nearly half of all exits — and a powerful reminder that turnover is rarely inevitable.

Turnover creates a ripple effect: burnout fuels exits, exits fuel more burnout, and the cycle continues, compounding both financial and human costs. This results in lost productivity, disengaged teams, and rising replacement expenses that strain already-tight budgets.

Forward-thinking organizations are breaking the loop by addressing the root cause: employee well-being.

Movement as Medicine: A Proven Strategy

Preventing burnout requires more than policy changes; it requires a holistic approach to employee well-being. One of the simplest, yet most effective strategies is encouraging movement throughout the day.

Regular physical activity has been shown to:

• Enhance productivity: Exercise improves memory, focus, and decision-making.
• Reduce stress and anxiety: Movement triggers endorphins that combat chronic stress.
• Boost engagement and satisfaction: Employees who move consistently report higher job satisfaction and morale.
• Support retention: Companies that integrate well-being programs and promote movement experience lower turnover rates.

Movement doesn't have to mean gym sessions or structured workouts. Simple habits like standing meetings, short stretches, walking breaks, and mindful movement can greatly improve employee well-being.

Designing a Proactive Well-Being Strategy

Reducing turnover starts with ditching generic perks and investing in strategic, meaningful wellness programs that make a measurable difference.

1. Personalized wellness programs: Tailor programs to individual needs, offering options for physical activity, mindfulness, and mental health support. Employees are more likely to engage when the program fits their lifestyle.
2. Early burnout detection: Use surveys, engagement metrics, and wellness check-ins to identify burnout risk early. Intervening before stress becomes unmanageable helps prevent disengagement.
3. Empowerment through education: Offer resources and coaching that give employees control over their own health. Knowledge and tools to manage stress and build resilience foster a sense of autonomy and commitment.
4. Embedded movement culture: Make movement and well-being a regular part of daily work. They should not be optional extras. A culture of well-being promotes engagement, reduces burnout, and strengthens team cohesion.

The Business Case for Well-Being

Investing in employee well-being isn't just good for people, it's good for business.

Research shows that:

• Companies with strong wellness programs see lower turnover compared to those without.
• Highly engaged employees are 20% more productive, delivering higher output and better-quality work.
• Teams with engaged employees see 78% less absenteeism, keeping work on track and consistent.

Addressing burnout and employee turnover cost isn't optional; it's a strategic imperative. Organizations that focus on movement, wellness, and stress management in their daily culture can achieve long-term success. This approach helps them become stronger over time.

Turning Well-Being into a Retention Strategy

FitOn Health partners with organizations to reduce turnover through personalized, measurable, and sustainable programs that integrate movement, mindfulness, and nutrition into daily life.

Our results speak for themselves:

• Up to 3.6X ROI for companies investing in preventive, lifestyle-focused well-being
• $359 saved per engaged employee per year in healthcare and productivity gains
• Measurable increases in engagement, satisfaction, and retention

FitOn Health helps employees manage stress, stay active, and build healthy habits. This support allows teams to thrive. It creates a culture where well-being is not just encouraged, but also a part of everyday life.

Because when well-being becomes part of the workday, the payoff extends far beyond health. It drives performance, retention, and long-term business success.

Learn how FitOn Health can help your organization reduce burnout and retain top talent — book a demo today.