Years ago, I worked with a colleague who was excellent at his job. The problem was, he had been with the company since what felt like the ice age and was repeatedly overlooked for training and development opportunities. Eventually, he began talking about leaving. When asked how the business would cope without him, he would simply reply:
“It would be like taking a fist out of a bucket of water—a slight ripple at first, and then no one would notice.”
In the end, he did leave. And despite his prediction, it took months to steady the ship and restore balance in the team.
When an employee leaves a business, the impact goes far beyond simply filling an empty seat. In the UK, staff turnover is estimated to cost organisations billions each year, and for small and medium-sized businesses in particular, the departure of a valued team member can have a ripple effect across finances, operations, and workplace morale.
Financial Costs of Recruitment and Training
The most immediate impact of an employee leaving is financial. Recruitment alone can be expensive, with businesses often spending thousands on job advertisements, agency fees, and HR time. According to the Chartered Institute of Personnel and Development (CIPD), the average cost of hiring a new employee in the UK can range from £1,000 to over £6,000, depending on the role and sector.
Once a new hire is made, training costs add another layer of expense. Time spent onboarding and coaching new staff often diverts managers and colleagues from their regular duties, temporarily lowering productivity. In many industries, it can take months before a new employee is fully up to speed, meaning the business may experience a prolonged skills gap or reduced efficiency.
The Hidden Impact on Morale
Beyond the financial burden, the loss of a colleague can disrupt team dynamics and employee morale. Remaining staff may feel demotivated or uncertain, particularly if the departure raises questions about workload, job security, or management practices. In some cases, increased pressure on existing employees to cover additional tasks can lead to stress, burnout, or even further resignations.
Moreover, when an experienced employee leaves, they often take valuable knowledge and relationships with them. This can weaken client trust, affect service delivery, and leave less experienced colleagues without a mentor. The emotional impact of losing a well-liked team member should not be underestimated either; a dip in morale can affect productivity and engagement across the workforce.
Mitigating the Effects
Most people do not leave their jobs—they leave their employers. The top companies know this and have strategies to ensure their staff feel heard and recognised as an important part of the organisation. By regularly taking the pulse of the workforce, you can anticipate and prevent unnecessary staff turnover.