Your best project manager just resigned. She gave you a month's notice, smiled through the handover period, and left on a Friday with a cake and a card. Everyone wished her well. HR processed the paperwork. And somewhere in the finance department, nobody is tracking what her departure actually cost the company.
Here is the real number: replacing a mid-level employee costs between six and nine months of their annual salary. That is not an exaggeration — it is the sum of recruitment costs, interview time, onboarding, training, the productivity dip while the new person learns the role, and the institutional knowledge that walked out the door and is never coming back. For a senior employee, the cost can be twelve to eighteen months. These are real numbers that appear on no balance sheet and in no quarterly review.
But the financial cost is only part of the story. When one person leaves, the team absorbs the workload. Morale dips. Other people start wondering: "Should I leave too?" One departure becomes two. Two becomes a pattern. And suddenly the company that was "fine" six months ago is in a retention crisis, spending more on recruitment than on development, and wondering why the talent pipeline is empty.
The Invisible Costs Nobody Tracks
- Relationship capital. Your departing employee had relationships with clients, suppliers, and colleagues that cannot be transferred in a handover document. Those relationships leave with them.
- Institutional memory. "Why do we do it this way?" Because the person who knew has been gone six months and nobody documented the reason.
- Team dynamics. A functioning team is not a collection of individuals — it is a system. Remove one part and the system recalibrates, often poorly.
- Manager time. Every departure consumes management attention — interviews, onboarding, check-ins — that could have been spent on strategy or development.
What Retention Actually Requires
Retention is not about counter-offers. By the time someone resigns, the decision was made weeks ago. Retention happens in the months and years before — in the daily experience of working at your company. Do people feel valued? Do they see a future? Is the workload sustainable? Is their manager someone they respect? Is their pay fair? These questions sound simple. Most organisations cannot answer them honestly.
The cheapest retention strategy in the world is a good manager who checks in regularly, gives honest feedback, advocates for their team's growth, and treats people like adults. It costs nothing. And it prevents the KES 900,000 departure that nobody budgeted for.