Turnover. It’s a quiet thief, siphoning away profits and disrupting your business just as things are gaining momentum. If you're a small or medium-sized business (SMB), you likely know the pain of losing a great employee—the cost is more than just recruitment fees or time lost in onboarding. It’s about lost knowledge, broken customer relationships, and lower team morale. The question isn't whether turnover is expensive—it is. The real question is: what can you do about it?
Miscommunication, lack of clear development paths, and unengaging performance conversations... all common culprits. But here's the opportunity: strategic investment in employee growth can turn this revenue leak into a revenue boost.
"SMBs can turn people development into a competitive advantage when resources are limited. Training and upskilling programs build internal capabilities and reduce reliance on outside hires, helping teams do more with the talent they already have. A LinkedIn Workplace Learning report found that 94% of employees would stay longer at a company that invests in their career, making this a direct lever for retention." Nick Mikhalenkov, SEO Manager, Nine Peaks Media
The True Cost of Turnover
Let’s put a number to it. Replacing a single employee can cost 1.5 to 2 times their annual salary. Multiply that by just a few exits each year and the impact on your financials becomes glaringly obvious. Beyond the direct costs, turnover slows productivity, damages culture, and delays delivery.
For SMBs, this hit to consistency and growth can be make-or-break. But this pain point also presents a powerful lever for revenue improvement: retaining and developing your team.
The Opportunity: Grow Your People, Grow Your Profits
People don’t leave jobs—they leave stagnation, poor communication, and lack of purpose. When SMBs shift their performance conversations from box-ticking exercises to developmental dialogues, everything changes. Investing in employee growth through structured performance management can:
Significantly reduce turnover costs
Improve day-to-day productivity
Fuel innovation and employee engagement
Increase revenue per employee
It ultimately means building a team that stays longer, performs better, and contributes to a healthier bottom line.
5 Ways Investing in Employee Growth Boosts Revenue
Let’s get practical. Here’s how targeted investment in your people's development directly contributes to your financial goals.
1. Reduce Costly Turnover
Companies that implement regular employee feedback see, on average, 14.9% lower turnover rates. That’s no small drop—especially when each lost employee costs thousands. By shifting from annual, outdated appraisals to ongoing performance conversations, you’re sending a powerful message: we hear you, we’re investing in you, and you matter.
At Solas Performance, we help businesses reduce avoidable turnover by implementing systems where employees are regularly engaged, supported, and heard. Less churn, more impact.
2. Boost Productivity Through Clarity
Confused employees are underperforming employees. Job expectations that change weekly, no idea where they stand, and communication that’s vague or infrequent—sound familiar?
Tools like a Solas Performance can structure reflection, ensure alignment with company goals, and provide visibility across the business. With regular, meaningful check-ins, employees gain clarity—and with clarity comes focus, output, and impact.
3. Increase Revenue Per Employee
A clear performance management strategy allows you to track KPIs like “Revenue per Employee.” Teams that know their goals, get support in closing skill gaps, and are recognised for achievements, quite literally produce more.
This is exponential to business growth. More impact per head means leaner teams, improved efficiency, and smarter resource allocation. Let your current headcount do more—by enabling them to be more.
4. Enhance Strategic Execution
Your time is valuable. A team with upskilled, empowered people lets you spend more time working on the business instead of in it. Strategic delegation made possible through performance insights means you—and your managers—have the freedom to focus on growth projects that unlock new revenue streams.
Solas Performance enables leaders to assess team strengths, assign the right tasks to the right people, and keep everyone moving towards shared business objectives.
5. Unlock Innovation from Within
When employees are given the psychological safety to speak up, experiment, and fail forward, innovation skyrockets. A growth-focused performance culture doesn’t just retain talent—it activates it.
Many SMBs don’t realise how much untapped innovation sits in their own workforce. With structured conversations and future-focused goals, you create a workforce that’s not waiting to be told what to do—they’re actively shaping what comes next.
How Solas Performance Supports Revenue-Centric Growth
Solas Performance isn’t another HR software platform. It’s a co-pilot for growth-minded leaders running lean, ambitious teams. Our tools like the Solas Performance turn intimidating review cycles into energising, productive conversations.
Here's how it works:
Guided Reflection brings together individual performance data, shout-outs, OKRs, and 360 feedback so employees see a full picture of their contributions.
AI-Assisted Self-Review makes it easy for employees to articulate their achievements and development needs.
Future-Focused Goal Setting ensures that each individual has aligned, motivating, growth-oriented goals that contribute to the overall business strategy.
This isn’t fluff—it’s the infrastructure for building a capable, committed team that drives revenue.
Wrap-Up: Make Turnover a Thing of the Past
The enemy of growth isn’t poor strategy—it’s often talent leakage. You can’t grow revenue if your best people are heading for the door. And they don’t leave because of money alone—they leave when they don’t feel seen, supported, or stretched.
Investing in employee growth isn’t just good culture—it’s good business. With tools like those offered by Solas Performance, you can:
Build a high-IQ, high-EQ team
Drive innovation and strategic execution
Reduce churn and keep your recruitment budget in check
Improve transparency, productivity, and outcomes
It’s time to stop losing money on turnover. Empower your team. Grow your revenue.
Want to see how Solas Performance can transform your performance conversations and financial outcomes? Explore our Solas Performance and experience the power of meaningful reviews.