Every organization feels the cost of turnover. It is a statistic so common that HR departments have measured it since the earliest days of formal employment. The formula is simple: the number of employees who leave divided by the average number of employees over a given period. Yet the simplicity of the measurement belies the complexity of the problem. The impact of turnover is not just financial. It disrupts teams, erodes culture, and places pressure on leaders to continually reset and rebuild.
Companies that believe they are hiring “good” people are often surprised when those same employees leave within months or years. Leaders find themselves asking why turnover persists despite careful recruiting and rigorous selection. The answer lies not in the quality of the hires but in the underlying causes of departure, which vary significantly depending on when employees exit.
At The Metiss Group, decades of work with leadership teams and organizational data reveal a clear framework for understanding turnover. It occurs in three distinct phases: the first 90 days, the short term, and the long term. Each phase reflects different causes, and each requires a tailored response.
This article outlines why turnover persists, even among seemingly strong hires, and what leaders can do to reduce it.
In This Article, You Will Learn:
- The Three Phases of Employee Turnover
- Why the First 90 Days Depend on the Hiring Process
- Why Short-Term Turnover Is a Leadership Issue
- Why Long-Term Turnover Reflects Organizational Alignment
- Practical Steps to Reduce Turnover Across All Phases
The Three Phases of Employee Turnover
Not all turnover is created equal. While the overall number is often tracked as a single percentage, the reasons behind departures differ depending on the stage of employment. Broadly, turnover can be segmented into three categories.
The first 90 days often reveal mismatches between candidates and roles. Short-term turnover, spanning 90 days to several years, is most often a leadership issue. Long-term turnover, involving employees who have been with the company for many years, reflects shifts in the relationship between employee and organization. Each category provides insight into what went wrong and how to address it.
Why the First 90 Days Depend on the Hiring Process
When employees leave within the first three months, the root cause is almost always a poor hiring process. Either the candidate was not the right fit for the role, or the organization failed to provide an accurate picture of the job. In both cases, misalignment occurs before the employee ever has a chance to succeed.
A strong hiring process, supported by hiring assessments and well-structured scorecards, minimizes this risk. By clarifying success factors and evaluating both technical skills and cultural alignment, organizations ensure new hires can integrate smoothly. When the process works, the first 90 days become a foundation for long-term success rather than an exit point.
Why Short-Term Turnover Is a Leadership Issue
Turnover that occurs between 90 days and several years is different. This is the stage where employees leave not because of the job itself but because of their leaders. While exit interviews often cite reasons like higher pay, shorter commute, or better opportunities, those explanations rarely tell the full story. Employees typically begin their search after disengaging from their manager.
Research consistently shows that the relationship with a direct supervisor is the most influential factor in employee retention. Poor communication, lack of recognition, inconsistent expectations, or even workplace bullying create environments where employees begin to look elsewhere. Short-term turnover is therefore not an HR statistic to be tracked, but a leadership challenge to be addressed.
Organizations that want to reduce this form of turnover must invest in leadership development programs. By equipping managers with leadership skills such as emotional intelligence, performance coaching, and clear communication, companies can shift the trajectory of short-term retention. This is where executive leadership coaching and leadership training programs have the highest impact.
Why Long-Term Turnover Reflects Organizational Alignment
Employees who depart after many years often leave for different reasons. Here, the issue is not a hiring mismatch or a poor leader. Instead, it is the relationship between the employee and the organization. Sometimes the company outgrows the employee, requiring new capabilities or strategic direction that no longer align with the individual’s skills. Other times the employee outgrows the organization, seeking challenges, growth, or opportunities that the current company cannot provide.
This type of turnover is not always harmful. If an organization has surpassed an employee’s capabilities, retaining them can create “job hugging,” where individuals hold positions they can no longer execute effectively. Likewise, when an employee has surpassed what the organization can offer, departure allows both parties to move forward without frustration or stagnation.
The healthiest organizations recognize these situations early and plan for succession, leadership training, and employee development. By aligning growth opportunities with strategic direction, companies reduce unnecessary turnover while ensuring inevitable departures occur at the right time.
Practical Steps to Reduce Turnover Across All Phases
Reducing turnover requires addressing the specific drivers at each stage. For the first 90 days, the solution is a robust hiring process that incorporates hiring best practices, scorecards, and cultural fit assessments. For the short term, the priority is leadership development. Managers must be trained not just in operational tasks but in leadership skills such as emotional intelligence in the workplace, coaching, and clear communication. For the long term, organizations must align employee development with strategic growth through leadership programs, succession planning, and ongoing performance reviews.
By addressing turnover in this structured way, leaders can transform what is often seen as an unavoidable cost into a manageable process. Most importantly, they can retain their best people by ensuring strong hires are supported by strong leadership and aligned with the organization’s long-term trajectory.
Takeaways
Turnover is not a single problem with a single solution. It is a multi-stage process with different root causes depending on when employees depart. The first 90 days highlight weaknesses in the hiring process. The short term reflects poor leadership, where managers fail to engage, support, and retain talent. The long term reflects the natural evolution of employees and organizations, requiring ongoing alignment and development.
The best way to reduce turnover is not by tracking a single percentage but by addressing each phase with the right solution. Strong hiring processes prevent early exits. Effective leadership training programs reduce mid-stage departures. Strategic development ensures that employees grow with the organization instead of apart from it. When leaders approach turnover with this framework, they stop asking why it keeps happening and start building organizations where employees want to stay.
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