By: Molly McGrath

In every industry, from tech startups to law firms, one of the most common—and expensive—issues leaders face is employee turnover. It’s a budget drain, a culture disruptor, and an energy drain. The Society for Human Resource Management suggests that replacing an employee could cost anywhere from 50% to 200% of their annual salary when factoring in recruiting, training, and lost productivity.

Most leaders might suggest that the solution is simple: hire better people. Get the right person in the right role, and the rest will likely fall into place. On paper, this sounds quite logical. However, in practice, it’s often not sufficient.

I’ve had the opportunity to work with over 5,000 law firms and small businesses during my 28 years as a consultant, and I’ve noticed a recurring pattern: an organization hires someone they’re genuinely excited about—a “unicorn” applicant who meets every criterion. The enthusiasm is palpable. Yet, within a few months, that employee is disengaged, putting in minimal effort, or already preparing to leave.

What went wrong?

The truth is somewhat difficult to accept: you didn’t hire the wrong person—you didn’t provide the leadership support they needed.

This isn’t about bad bosses with ill intentions. Most leaders are deeply invested in their teams and want them to succeed. But far too often, they unknowingly create environments that unintentionally push great people away. It’s a blind spot that costs organizations millions in lost potential each year—and it’s something that can be addressed.

The Hiring Illusion

Let’s talk about the moment a position is finally filled.

You’ve slogged through the endless résumés, the awkward interviews, and the scheduling nightmares. Finally, the perfect applicant accepts your offer. It feels like the finish line—you exhale, ready to get back to the “real” work.

But hiring is not the finish line. It’s the starting line.

Here’s where the hiring illusion comes in: leaders assume that because someone was impressive in the interview, they’ll hit the ground running and stay motivated indefinitely. But the first 90 days are when expectations, culture, and relationships are formed. And if those are mishandled, no amount of salary, benefits, or perks will keep an employee engaged.

I’ve seen this in law firms more than anywhere else. A firm brings in a stellar paralegal or legal assistant—someone with exceptional skills and references. But no one explains how the firm’s workflow actually functions. They’re left to figure things out on their own, with feedback coming only when something goes wrong. Within weeks, the initial enthusiasm turns into quiet frustration. By month three, they’re looking for a new job.

It’s not about their abilities—it’s about unmet expectations. And those expectations are almost always unspoken.

The Leadership Gap That Affects Retention

Hires leave for many reasons, but many of these reasons can be traced back to one core issue: a leadership gap.

1. Unspoken Expectations

Leaders often believe they are communicating clearly. In reality, much of what they expect from employees remains in their heads. Instead of offering clear, actionable guidance, new hires are often left to “figure things out.” This creates a moving target—employees can’t always be certain if they’re meeting expectations.

2. Lack of Role Clarity

Even the most talented individual will underperform if they’re uncertain about what success looks like in their role. Without clear outcomes and priorities, they waste energy on guessing rather than producing results.

3. Micromanagement Disguised as Support

Leaders sometimes assume they’re helping by jumping in to correct or refine every detail. However, micromanagement diminishes confidence and signals a lack of trust. Employees may stop taking initiative because they sense their work will eventually be redone.

4. Overlooking Emotional Intelligence

Technical skills can get someone hired, but it’s emotional intelligence—how people handle stress, communicate, and adapt—that maintains team cohesion. Leaders lacking emotional intelligence may create environments where employees feel overlooked, undervalued, and unsupported.

This is not just theoretical. Gallup’s research has repeatedly indicated that the primary reason people leave jobs is not pay—it’s their manager.

Fixing the Boss, Not the Employee

The turning point for many organizations I work with occurs when they realize this: you can’t hire your way out of a leadership challenge.

This concept is a central theme of my book Fix My Boss. The idea is simple: when teams are struggling, leaders often rush to “fix” employees. They add more rules, oversight, and performance reviews. But meaningful change happens when leaders first focus on improving their own leadership approach.

Here are three leadership shifts that can make a significant impact on retention and performance:

1. Lead with Clarity

Replace assumptions with clear expectations. Define what success looks like for each role and communicate it openly. Use written processes and role scorecards so employees always understand the target.

2. Build a Culture of Accountability Without Fear

Accountability isn’t about pointing out mistakes—it’s about fostering a shared commitment to results. This involves regular check-ins, constructive feedback, and recognizing achievements when things go well.

3. Trust Your People and Let Them Own Their Work

Delegation isn’t just about offloading tasks—it’s about empowering employees to take ownership of outcomes. Give your team the autonomy to make decisions, even if their approach differs from yours.

The ROI of Empowered Leadership

Leadership development is not just “soft skills” training; it’s a revenue-generating strategy.

When leaders shift from a controlling approach to one based on empowerment, the results can be measurable, valuable, and transformative for the entire organization.

Turnover can decrease (I’ve seen reductions of up to 60% within a year).
Client satisfaction improves because engaged employees provide better service.
Revenue grows as leaders can focus more on strategy than constantly putting out fires.

One of my clients calculated that replacing a single paralegal costs them $42,000 in recruiting, onboarding, and lost billable time. After improving their leadership practices, they retained their team for four consecutive years. The savings and stability were transformative.

Action Steps for Leaders Starting Today

You don’t need a six-month overhaul to begin improving retention. Here are the steps you can take this week:

1. Define Success for Every Role – Write down the three to five key outcomes you expect. Share them. 
2. Hold a Weekly Check-In – 20 minutes to align priorities, address obstacles, and celebrate wins. 
3. Document Your Processes – Get tasks out of your head and onto paper so they can be followed—and improved—by others. 
4. Ask for Feedback – Create a safe way for employees to share what’s working and what’s not. 
5. Stop “Rescuing” – Let employees own solutions instead of jumping in at the first sign of struggle.” 

Leadership Is the Leverage Point

If you’ve found yourself caught in the cycle of hiring, losing, and rehiring, it’s tempting to think you just haven’t found “the right person” yet. But often, the right person has already walked through your door—they simply weren’t provided with the leadership support they needed to thrive.

Hiring is just the starting point. The success of your team depends largely on how you lead them.

By addressing your leadership practices, you can fix your business. More importantly, you’ll create a workplace where great people want to stay, grow, and do their best work.