Gad’s Newsletter • 44 implied HN points • 15 Dec 25
- The true cost of losing knowledge workers is much larger than just hiring and training expenses; firms also pay in lost productivity, broken team coordination, ruined institutional knowledge, weakened innovation, and extra contingency spending.
- Turnover in knowledge-intensive roles (like software engineers) can disrupt projects, reduce quality and innovation, harm customer relationships, and often costs on the order of a full year’s salary or more.
- Not all turnover is bad: losing top performers is very costly while losing weak performers can help, so companies should optimize retention by protecting high-value employees and not reflexively holding on to marginal ones.