Rest assured…AI did not write this article. If it did, the article would likely be full of inaccuracies and falsehoods. The popularization of Artificial Intelligence (“AI”) Chatbots rapidly transformed many aspects of work, study, and life. It is an undeniably powerful tool that comes with debate and controversy. While Retensa celebrates the advancement and continues a 10-year history using AI in workforce predictive analytics, using AI chats for employee retention strategies would be a disaster.
Don’t get us wrong: this is not a dig at AI. AI has and will continue to be a part of what Retensa does. It is simply a notable current limitation of “generative” AI tools. Turnover Myths are common. Consistently and casually repeated, rephrased, and repurposed for the last 20 years, AI flagged them as facts in its trawl net of training data.
So to save you hundreds of hours and hundreds of thousands of dollars, here are the 6 Turnover Myths that AI Chats fails to highlight:
MYTH 1: There is an “Average” Employee Turnover Rate
While all organizations face turnover, many leaders want to know how they compare to their peers. While industry is a good initial indicator, an accurate benchmark requires industry, employment size, AND geographic location (for some industries like hospitality, seasonality is a major factor).
While following the general macro-trends, job climates around the globe vary greatly. Countries rely on different industries and organization size as their GDP and quality of life drivers. Cultural norms, economic policies, and government regulations are influential factors that affect how all three aspects show up in turnover statistics.
For example, staff turnover in the automotive and manufacturing industries varies widely by region, shaped by production methods, market dynamics, and labor policies. In Germany, the automotive industry benefits from precision engineering and strong labor unions, promoting job stability and long-term employment. In contrast, the U.S. sees higher turnover, particularly in non-union automotive plants, where cost-cutting and competitive pressures reduce job security. Similarly, Japan’s focus on lean manufacturing and lifetime employment traditions keeps turnover low, reflecting cultural values of loyalty. In the manufacturing sector, Tamil Nadu, a southern state in India, reduced turnover by increasing female participation through initiatives like childcare, secure transport, and housing, making the workforce more inclusive.
None of the above incorporates Involuntary staff turnover (terminations for cause or layoffs). In some areas or industries, Involuntary turnover rate can account for as much as 20% to 40% of total turnover.
Most of the numbers you hear from organizations, trade associations, or labor departments refer to annualized Voluntary turnover rate. That can provide a misleading view against any HR metric other than whole organization voluntary turnover rate in one year. So while benchmarking turnover rates is possible under many conditions, there is no such thing as an “average” without factoring in contextual predictors.
MYTH 2: People Quit Big Companies More Often
While it makes sense to think that the larger the company is, the higher the turnover rate would be, it is actually the opposite. As it turns out, Enterprises have a lower turnover percentage than small and mid-sized businesses.
What people may see instead, is the higher volume of turnover due to its size, when larger organizations in reality show more flexibility and see lower percentages. Enterprises can more easily absorb and manage high turnover through resources and long-term planning, such as adjusting the budget, building talent pools from past pipelines, and succession planning.
Additionally, larger organizations in general provide more stability in their strategy, compensation and benefits offerings, as well as advancement opportunities. These are major attractors for many job seekers and have become more in focus in recent years. AI models might inaccurately flag the turnover trends in larger companies based on sheer data volume, overlooking stabilizing factors.
MYTH 3: The Cost of Turnover is Equal to 1x – 2x an Employee’s Salary
Turnover is expensive. While some leaders underestimate the impact, many believe the price of turnover is more than the actual cost. Often cited as being equal to 1x to 2x an employee’s salary–a figure that can be traced back to Gallup’s calculations, the estimate is misleading. While Gallup’s numbers weren’t incorrect, the headline they used was a bit loose in how it conveyed the data. In reality, most employees fall within the 25% to 50% range in terms of impact on turnover costs.
Check out Retensa’s Cost of Turnover Calculator here to get an estimate on different roles’ attrition:
This cost can escalate significantly for certain roles, with some employees reaching up to 5x their salary. Salespeople can drive turnover costs as high as 10x! This distribution is reflected in the step bell curve, showing how turnover costs vary across different levels of performance and roles. AI would likely standardize this figure, missing the true variations in turnover costs across roles and industries.
MYTH 4: People Quit Because of their Manager
While it’s true that many employees who leave voluntarily cite management or organizational issues as factors that could have prevented their departure, it is a simplification of the multifaceted topic of Why People Leave. In fact, we have synthesized from 25 years of field research 24 main drivers of employee experience that contributes to over 99% of why employees leave. Check out the themes in our exit interviews here: https://exitpro.com/exit-interview-forms/
According to Retensa’s very own Turnover Unveiled – a metadata analysis where they’ve been tracking turnover data for the past decades – Supervisors & Managers is lowering in reasons why people quit.
You can check out the full Industry Comparison Employee Turnover Trend here: https://store.exitpro.com/product/employee-turnover-trends-industry-comparison-report-10-years/
MYTH 5: Training People Makes them Better so They Quit
While there is a risk that new employees may leave after receiving essential training, this often highlights a flaw in the training model rather than being a direct consequence of the training itself.
The idea that employees leave after training because they’ve “learned what they needed” doesn’t hold, especially when the training is specific to a company’s processes. Since the knowledge gained is often not easily transferable, leaving would be counterproductive. If employees do leave, it’s likely due to issues with the training program or its application.
If new employees make it past the 90-day mark but still struggle with confusion or need constant clarification, it may signal that the onboarding program isn’t clear or thorough enough. This can lead to frustration and poor performance, increasing the risk of turnover. However, when training is engaging, well-structured, and aligns with company culture, employees are more likely to feel connected and stay longer.
Moreover, not all turnover is negative. If employees realize early on during training that they’re not a good fit, it’s better for them to leave sooner rather than struggle through a steep learning curve or produce low-quality work. This early turnover saves resources and allows the company to focus on finding better-suited candidates.
MYTH 6: Young People are Not Loyal Anymore
The misconception behind this myth is rooted in a lack of perspective. With the current job market, government regulations, and benefits, staying at a single company often doesn’t offer enough incentives for employees. Limited advancement opportunities, salary caps, and the lack of benefits like pensions can make staying in one role less appealing.
Employees are increasingly looking for environments where they can grow, earn more, and access better benefits. Loyalty isn’t disappearing; rather, employees are seeking more value and fulfillment, which is why they may explore other options when their needs aren’t met.
Conclusion:
In conclusion, the myths surrounding employee turnover often oversimplify complex realities, and AI sometimes fails to capture contextual clues that can really make the difference at your organization.
While industry benchmarks and macro trends can provide helpful framing, they rarely capture the unique dynamics of individual organizations. That’s why having your own data and insights is essential for understanding and addressing turnover in a meaningful way.
At Retensa, we remain committed to uncovering the truths behind turnover with research-driven insights, predictive analytics, and tools that empower organizations to build stronger, more resilient workforces. By challenging these myths, companies can better address the root causes of turnover and create environments where employees thrive and stay engaged. Let’s move beyond the myths and focus on facts that truly make a difference.
Employee Retention Idea:
Get in the conversation—know who’s quitting, when they’re quitting, and why. Bust more myths with us by checking out the Cost of Turnover Calculator, a free tool to uncover the true impact of turnover in your organization. And don’t miss the Turnover Unveiled seminar, where we’ll break down the past 1, 3, and 5 years of global turnover data.