What is Turnover Contagion, and Why Should HR Care?
Don’t let turnover contagion derail your team. Learn how to maintain morale, engagement, and productivity with these proven HR strategies.
by Anna Coucke - January 29th, 2025
Turnover contagion is a silent disruptor in the workplace, capable of causing a ripple effect that impacts morale, productivity, and organizational stability. While a single employee’s departure might seem like an isolated event, the truth is that it can quickly create a chain reaction by prompting others to follow suit.
For HR and business professionals, understanding turnover contagion and its implications is critical for maintaining workforce stability and minimizing disruption.
In this article, we’ll explore the concept of turnover contagion and why leaders should pay close attention to it, along with actionable strategies to mitigate its impact.
What Is Turnover Contagion?
Turnover contagion occurs when one employee’s decision to leave an organization influences others to do the same. This phenomenon stems from multiple psychological and social dynamics in the workplace, where employees closely observe and are affected by the actions of their peers.
Here are the key factors that can drive turnover contagion:
Social Modeling: Employees often mimic the behavior of their peers. If one person leaves, others may view it as acceptable or even desirable to follow suit.
Perceived Instability: A colleague’s resignation can signal underlying organizational problems, such as mismanagement or a toxic work culture, leading others to question their own job security.
Increased Workload: When an employee leaves, their tasks often fall on the remaining team members. This added burden can lead to burnout and dissatisfaction, further increasing the likelihood of more departures.
For example, think about a high-performing employee in a sales team who decides to leave for a competitor. Other team members may question their own growth opportunities, leading them to explore external options as well. This cascade effect is the essence of turnover contagion.
Why HR Professionals Should Care About Turnover Contagion
Turnover contagion is more than just an inconvenience; it can have serious implications for an organization’s financial health, culture, and operational efficiency.
Here’s why HR professionals should prioritize understanding and addressing it:
1. Financial Costs
The cost of turnover is significant. According to the Society for Human Resource Management (SHRM), replacing an employee can cost up to 50-60% of their annual salary, with total turnover costs ranging from 90-200% of annual pay when factoring in lost productivity and training. If turnover contagion takes hold, these costs can quickly escalate as multiple employees leave in quick succession.
2. Cultural Erosion
When employees see their colleagues leaving, it can create uncertainty and reduce trust in the organization’s processes, culture, and long-term success. This erosion of morale and engagement can lead to a toxic workplace, making it even harder to retain remaining employees and attract new talent.
3. Operational Disruptions
High turnover disrupts workflows, especially in tightly-knit teams or specialized roles. Remaining employees may struggle to maintain productivity while adjusting to new team dynamics and increased workloads. Additionally, potential new employees can see it as a red flag that the company is an unstable or undesirable workplace.
Signs of Turnover Contagion
Recognizing turnover contagion early is key to mitigating its effects. HR professionals should watch for the following signs:
Increased Resignation Conversations: Employees openly discuss their colleagues’ departures or talk about potentially leaving themselves.
Morale Decline: A noticeable drop in engagement, enthusiasm, or collaboration among teams.
Productivity Drops: Reduced performance or absenteeism among employees in the wake of a resignation.
Data Patterns: A spike in turnover rates within a specific team or department following a high-profile departure or hire.
By identifying these red flags, HR can act proactively to address potential issues before they escalate.
How HR Can Mitigate Turnover Contagion
Turnover contagion isn’t inevitable. With the right strategies, HR professionals can minimize its impact and create a resilient workplace culture. Here’s how:
1. Proactive Communication
When a key employee leaves, silence from leadership can fuel speculation and anxiety. Instead:
Acknowledge the Departure: Share the news transparently with the team while emphasizing the organization’s commitment to stability.
Address Concerns: Offer reassurance about the company’s direction, workload distribution, and future plans.
2. Strengthen Employee Engagement
Engaged employees are less likely to leave, even in the face of turnover contagion. To boost engagement:
Regularly check in with employees to understand their concerns and career aspirations.
Recognize and reward contributions to reinforce their value within the organization.
Foster a culture of connection and purpose through team-building activities and meaningful work.
3. Provide Positive Offboarding Experiences
Departing employees can significantly influence how others perceive the organization. A negative offboarding experience can damage morale, while a positive one can leave a lasting impression. Ensure:
Employees leave on good terms, regardless of their reason for departure.
Exit interviews are conducted to gather feedback and address potential systemic issues.
4. Monitor At-Risk Teams
Pay close attention to teams or departments where turnover contagion is most likely to spread, such as high-pressure roles or teams affected by a key resignation. Use engagement surveys, pulse checks, and retention metrics to gauge team sentiment and identify areas of concern.
5. Redistribute Workloads
An increased workload is a common consequence of turnover and a significant trigger for turnover contagion. Prevent burnout by:
Redistributing tasks fairly across the team.
Hiring temporary support if necessary to maintain productivity while filling vacancies.
Putting non-urgent projects on hold or extending deadlines.
6. Build a Strong Employer Brand
A strong employer brand can help counteract the effects of turnover contagion by reinforcing employee loyalty. Focus on:
Offering clear career growth opportunities.
Providing competitive compensation and employee benefits.
Highlighting the organization’s commitment to employee well-being.
Example: Turnover Contagion in Action
As an example of how turnover contagion can begin and be mitigated, think about a midsize tech company where a senior software developer resigns. The departure creates uncertainty among the team, particularly as the remaining developers face a heavier workload. Within three months, two additional developers leave for similar roles at other companies.
HR then intervenes by:
Hosting a town hall to address concerns and outline the company’s hiring plan.
Offering retention bonuses to critical team members.
Implementing a mentorship program to provide professional development opportunities.
Refocusing team efforts on critical projects, while putting long-term projects on hold until headcount increases.
As a result, team morale stabilizes, giving the company time to hire and train replacements, and operations return to normal within six months.
Final Thoughts
Turnover contagion is a complex challenge, but it’s one that HR professionals can address with the right strategy. By understanding its causes, recognizing the signs, and taking proactive steps, organizations can minimize its impact and maintain a stable, engaged workforce.
Investing in transparent communication, employee engagement, and proactive retention strategies is not just a short-term response to turnover contagion; it’s a long-term commitment to building a thriving workplace. For HR leaders, this means staying vigilant, responsive, and focused on creating an environment where employees want to stay and grow.
Subscribe to Beyond The Desk to get insights, important dates, and a healthy dose of HR fun straight to your inbox.
Subscribe hereRecommended Posts
How to Rehire an Employee in 2025 [+Checklist]
Blog Articles
Why Leaders Must Prioritize Workplace Wellbeing in 2025
Blog Articles
Search...
Product
GoCo
Resources
Articles
eBooks
Webinars
Customer Stories