Why Good Employees Quit: The Retention Problem Nobody Will Solve
 
 January 5, 2025
Why Good Employees Quit: The Retention Problem Nobody Will Solve
Your top performer just gave notice. The one everyone called a “perfect hire.”
She aced every interview. Her skills matched perfectly. She hit every goal in her first year. Exit interview? She said all the right things about “new opportunities” and “career growth.”
But here’s what she didn’t say: She spent 60% of her time on work that drained her soul, even though she was excellent at it.
This happens every week. Companies throw retention bonuses, better benefits, and engagement surveys at the problem. Then watch their best people leave anyway.
The Numbers Tell a Brutal Story
Here’s what employee retention looks like in 2025:
| The Reality | The Cost | 
|---|---|
| Average voluntary turnover rate | 13.5% (down from 17.3% in 2023) | 
| Workers considering job changes | 56% plan to look in 2025 | 
| Median employee tenure | 3.9 years (lowest since 2002) | 
| Cost to replace entry-level employee | 30-50% of annual salary | 
| Cost to replace mid-level employee | 125-150% of salary | 
| Cost to replace senior executive | 200-213% of salary | 
| Annual US business losses to turnover | $1.8 trillion in lost productivity | 
The math is simple and devastating. You’re replacing your entire workforce every 4 years on average. For a company with 100 employees earning $50,000 average, a 3% reduction in voluntary turnover saves $360,000-$540,000 annually.
Yet 60-70% of turnover costs are hidden. They never show up on balance sheets. The lost productivity during the 3-8 months it takes a new hire to get up to speed. The institutional knowledge that walks out the door. The team morale hit when someone popular leaves.
Most companies with high turnover make no changes. Because they can’t see what’s actually broken.
Why Traditional Retention Fails
Let’s look at what companies typically try:
The Pay Raise That Doesn’t Work
A 10% raise on a $40,000 salary costs $4,000 per year. Replacing that person costs $20,000 once, plus months of lost productivity.
Yet companies continue prioritizing short-term labor cost reduction over retention investment. Why? Because the $4,000 shows up as a line item. The $20,000 replacement cost gets hidden across recruiting, training, and productivity losses.
The real problem: raises don’t fix the core issue. Research shows compensation ranks 5th among reasons people leave, behind lack of career growth, poor management, toxic culture, and lack of recognition.
A person who’s drained by their daily work won’t stay for 10% more money. They’ll take a lateral move somewhere that energizes them.
The Perks Arms Race
Free lunch. Gym memberships. Unlimited PTO. Game rooms. Beer on tap.
91% of respondents say recognition culture makes a company attractive. That sounds great until you realize what happens next.
The same people leave anyway. Because they love the perks but hate the work.
Real example from online forums:
“They gave us standing desks, catered meals, and a massage chair. I still spent 8 hours a day doing work that made me want to scream. I left for a company with zero perks and a job I actually enjoy.”
The perks treat symptoms. They don’t touch the disease.
The Engagement Survey That Changes Nothing
Companies spend billions on engagement surveys. They measure satisfaction, ask about culture, track sentiment scores.
Then what?
Most common outcome: a presentation to leadership showing “areas of concern” followed by zero action. Or worse, a pizza party and a promise to “do better.”
Here’s the brutal truth: engagement surveys measure how people feel. They don’t measure what drains their energy at a fundamental level.
The product manager who scores “satisfied” on every survey but slowly burns out because 60% of her role is documentation she hates. The analyst who reports “engaged” while dying inside because his promotion moved him away from actual analysis. The creative who clicks “neutral” while spending her days in operational work that kills her soul.
Engagement surveys catch surface-level dissatisfaction. They miss the deep energy mismatch that drives people out.
The Retention Bonus That Backfires
Desperate companies offer retention bonuses. Stay one more year, get $10,000.
Here’s what actually happens: the employee stays for the bonus, does the minimum required work, and leaves the day after the bonus pays out. Meanwhile, they’re actively job hunting and checked out mentally.
You paid them to be a zombie for a year. Then they left anyway.
Retention bonuses work when someone loves their job but got a tempting outside offer. They fail completely when someone’s in the wrong type of work for their brain.
The Pattern Nobody Sees
Here’s what’s actually happening, based on real data:
A product manager excels at strategy and vision work. She loves explaining complex ideas to stakeholders. She’s energized by collaborative problem-solving sessions.
But her role is 60% documentation, status reports, and sprint ceremonies. She’s excellent at it. She hits every deadline. Her documentation is thorough.
She’s dying inside because the work that takes up most of her time drains her. Every status update feels like torture. Every documentation task is something to get through, not something that gives energy back.
Skills-based hiring caught that she could do the work. It missed that the work would exhaust her.
Real Examples That Keep Repeating
The analyst promoted away from analysis:
Loved diving deep into data. Energized by solving complex problems alone. Got promoted to team lead because he was so good at analysis.
Now spends 70% of his time in people management, stakeholder meetings, and conflict resolution. He’s competent at it. He hates every minute. He’ll leave within 18 months.
The creative trapped in operations:
Energized by designing new solutions and thinking outside the box. Hired into a role that sounded creative.
Reality: 80% process documentation, following established procedures, and maintaining existing systems. She’s great at it. It kills her soul. She’s already interviewing elsewhere.
The builder stuck in strategy:
Loves hands-on problem-solving and working with tools. Energized by fixing things and seeing concrete results.
Got hired into a senior role that’s mostly high-level strategy and stakeholder management. Minimal hands-on work. He’s good at strategy. He misses building things. He’ll accept a “step down” just to get back to work he actually enjoys.
The Mismatch Pattern From Actual Data
Looking at real employee profiles reveals something companies never measure:
The lowest scores predict who leaves.
Someone who hates documentation but whose role is 60% documentation won’t last. Someone who’s drained by constant collaboration in a highly social role will burn out. Someone who needs hands-on work in a purely strategic role will quit.
It doesn’t matter that they’re skilled at it. Skills don’t predict energy fit.
People with multiple high interests get pulled in every direction.
The person energized by analysis, creativity, helping others, and building things becomes everyone’s go-to person. They can do everything, so everyone asks them to do everything. They burn out from being constantly torn between competing types of work they all enjoy.
Role categories rarely match what actually energizes people.
Marketing roles filled by people who aren’t energized by creative work. HR roles filled by people who are drained by constant people interaction. Technical leadership roles filled by people who miss hands-on building.
Skills-based hiring put them there. Energy mismatch will push them out.
What Companies Refuse to Measure
Despite 75% of turnover being preventable with better understanding of what employees want, most companies never ask the right question.
They measure:
- Skills (what you can do)
- Performance (how well you do it)
- Engagement (how you feel about it)
They don’t measure:
- What type of work naturally energizes versus drains you
That’s the gap that creates turnover even after “perfect” hiring.
The Training Cycle That Never Ends
New hire training costs $954 per person annually. Comprehensive programs consume 16-20% of annual salary. New employees take 3-8 months to reach full productivity.
Then the person leaves. You lose the entire investment and start from zero.
With median tenure at 3.9 years, you’re training people who’ll be gone before you see the full return on that investment.
The insane part: the same roles keep churning. You hire, train, lose, and repeat for the same positions over and over.
Because you’re not fixing why people leave. You’re just replacing them with the next person who’ll leave for the same reason.
The Retention Strategies That Actually Work (Sort Of)
Research shows these strategies do reduce turnover:
Recognition programs: Employees recognized weekly are 9x more likely to recommend their company and 6x more likely to see a long-term future there.
Career development: 74% would consider new roles offering development opportunities. Companies with strong learning programs see higher retention.
Flexible work arrangements: 89% of HR professionals saw increased retention after implementing flexible policies.
Strong onboarding: Nearly half of employees have second thoughts within their first week. Companies have 44 days to convince new hires to stay.
Better management: Poor management is a primary reason for departure. Training managers to support teams reduces turnover.
These all help. They should all be implemented.
But they still don’t touch the core issue. A person whose daily work drains them will eventually leave, even with great recognition, strong development programs, perfect flexibility, excellent onboarding, and a fantastic manager.
The Part Nobody Wants to Fix
Here’s what Work Institute found: 75% of employee turnover could have been prevented if companies better understood what employees wanted.
But companies keep measuring the wrong things.
Traditional retention efforts assume the problem is:
- Not enough money (give raises)
- Not enough perks (add benefits)
- Not enough engagement (run surveys)
- Not enough development (offer training)
- Not enough recognition (praise more)
The real problem is deeper: the work itself fights against what naturally energizes them.
That product manager isn’t leaving because she needs more recognition. She’s leaving because 60% of her daily work drains her energy, even though she’s excellent at it.
The analyst isn’t leaving because he wants better perks. He’s leaving because his promotion moved him away from the work that energized him.
The creative isn’t leaving because she needs more training. She’s leaving because her role uses her lowest-energy work all day long.
What Actually Needs to Happen
The solution requires admitting something uncomfortable: matching skills to job descriptions isn’t enough.
You need to match the type of work to what gives each person energy versus what drains them.
This means:
- Understanding what naturally energizes versus drains each person
- Measuring if their current role matches that
- Adjusting roles before people burn out
Not testing skills. Not surveying engagement. Not guessing based on job titles.
Actually measuring: does the daily reality of this person’s work energize or exhaust them at a fundamental level?
The Tools That Miss the Point
AI-driven predictive analytics can identify flight risks with impressive accuracy. IBM reduced attrition 30% using predictive models. Microsoft cut turnover 25% by monitoring engagement.
These tools are valuable. They tell you who’s about to leave.
They don’t tell you why at the root level. They can predict someone’s going to quit. They can’t tell you it’s because their role is 60% work that drains their specific type of brain.
Engagement surveys measure sentiment. They don’t measure energy fit.
Performance reviews measure output. They don’t measure whether the work itself sustains or depletes someone.
Skills assessments measure capability. They don’t measure what type of work makes time fly versus crawl for each individual.
The Turnover That Never Had to Happen
Every week, companies lose people they could have kept.
Not by paying more. Not by offering better perks. Not by running more surveys.
By understanding what type of work energizes each person, measuring if their current role matches that, and adjusting before the mismatch becomes unbearable.
The data is clear:
- 13.5% voluntary turnover rate
- 56% of workers planning to look for new jobs
- $1.8 trillion in annual losses
- 3.9-year median tenure
- Entire workforce replaced every 4 years
The solution is available: measure energy fit, not just skills and engagement.
The problem nobody wants to solve: admitting that your hiring and retention processes are optimized for the wrong thing.
You’re measuring what people can do and how they feel about it. You’re not measuring what sustains them versus drains them at work.
That’s the retention problem nobody will solve. Until they do, the cycle continues.
Hire. Train. Watch them excel. Wonder why they leave. Replace. Repeat.
This is what Korture was built to fix. We measure what type of work energizes versus drains each person, show you if their current role matches that, and help you make adjustments before people burn out or quit.
Because solving retention isn’t about better perks or higher pay. It’s about matching humans to the work that sustains them.
That’s the part of retention nobody wants to fix. Because it requires measuring something most companies have never thought to measure.
See how Korture catches what engagement surveys miss
Key Sources:
- Inspirus: 2025 Employee Turnover Statistics
- US Bureau of Labor Statistics: Employee Tenure
- SHRM: The Real Costs of Recruitment
- Gallup: State of the American Workplace
- Achievers: 15 Employee Retention Strategies
- O.C. Tanner: Employee Retention Guide
- Select Software Reviews: Employee Retention Statistics
- Navigate: 9 Powerful Employee Retention Strategies
- HR Morning: Real Cost of Employee Turnover
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About the Author

Launched new businesses in fintech and consumer tech. Learned the hard way that hiring the best individuals doesn't guarantee team success.