How Turnover Can Tank Your Company's Valuation (And What Top Leaders Do About It)
Before we talk about solutions, let's look at the numbers. Replacing an employee isn't just a cost, it's a serious risk to your business. For C-level executives and investors, the math is sobering: The cost of replacing a single manager or technical professional can be as high as 200% of their yearly salary . But what if it also killed your company's valuation? According to a recent study by Russell Reynolds Associates, CEO turnover at big companies is at an all-time high ( Russell ). This kind of churn, which often points to bigger problems inside a company, is a major red flag to investors. It signals a lack of stability and a potential failure to deliver on promised growth. Your best employees aren't just assets; they are the foundation of your company's value. Why Your Best People Leave Why do people leave? It's not usually just about one thing. Here are the top problems that drive away your best people. Bad Management. Poor managers are the number one...