Estimated $25,000 $60,000+ per Gen Z employee lost

In high-growth tech/SaaS orgs, this can exceed $500K+ annually when early-career attrition compounds across teams.

Breakdown of Estimated Cost Per Exit:

• Lost Productivity - $10,000–$20,000 (delay in output +
  team strain)

• Recruitment &Onboarding - $6,000–$15,000 (advertising, interviews,
  onboarding time)

• Training Investment Lost - $4,000–$10,000 (especially for technical
  roles)

• Intellectual Property /Process Loss - $2,000–$8,000 (tribal knowledge, client
  insights, internal tools)

• Reputation & Culture
  Impact - $3,000–$7,000 (team morale, Glassdoor,
  internal trust)

 Why It Matters:
● Voluntary turnover in Gen Z is rising: 74% say they’re likely to leave
within 12 months if the culture or values do not align with their
expectations (Deloitte, 2023).

● They leave faster than they return value: Many exit before reaching
full productivity ROI (~12–18 months).

● Cost of early-career turnover: Replacing an entry- to mid-level employee
costs 30–50% of their annual salary. (SHRM, 2022)

● SaaS + tech orgs suffer deeper hits: Especially in hybrid teams,
where onboarding, engagement, and retention are more difficult to
scale.

According to Gallup, U.S. businesses lose over $1 trillion annually to voluntary turnover. A sizable share is tied to Gen Z exits that could’ve been prevented through
better alignment and development systems.

 Estimated $100K–$300K per year in lost digital innovation, productivity tools, and missed early-adopter advantages

Why It Matters:
● Gen Z employees are often the first to identify and adopt emerging
technologies, platforms, and workflows. When they leave, companies
lose momentum in automation, AI integration, and user-driven
innovation—forcing teams to play catch-up.

● Middle managers often feel unprepared to lead Gen Z teams, leading
to resentment, poor morale, and costly micromanagement.

According to Gallup, disengaged employees are 18% less productive and 15% less profitable—Gen Z exits amplify this across agile teams. 

Estimated $250K–$500K annually in delayed digital transformation, poor ESG execution, and loss of employer brand relevance

Why It Matters:

● Gen Z prioritizes purpose, tech-forward practices, and ethical leadership. Failing to integrate these values into your business model
weakens recruiting, stalls transformation, and leads to lower investor and customer confidence.

● 57% of Gen Z employees say they were overwhelmed or underprepared by onboarding experiences. (LinkedIn Learning 2023)

● Companies with structured early-career mentorship programs see 20% higher retention within the first year. (National Association of Colleges and Employers - NACE, 2022)

● 47% of Gen Z employees prefer continuous, in-the-moment feedback
vs. annual reviews. (LinkedIn Workplace Learning Report, 2023)

A McKinsey report found companies with strong Gen Z brand alignment attract 2x more qualified applicants and outperform peers by 20% in digital adoption metrics.

Estimated $3,400 per disengaged employee per $10,000 in salary

Team-wide breakdowns cost $500K+ per year in high-growth orgs

Why It Matters:

● Poor cross-generational alignment causes friction in feedback loops,
meeting flow, and accountability. Misunderstood expectations and unclear communication lower engagement and delay deliverables.

● 58% of Gen Z workers say they’ve experienced a lack of respect or misunderstandings from older colleagues. (SHRM Gen Z in the Workplace Report, 2023)

● Managers cite “difficulty understanding Gen Z’s expectations” as a top 3 challenge in managing generationally diverse teams. (PwC Workforce Hopes & Fears Survey, 2023)

● Only 12% of managers feel “very confident” in their ability to lead Gen Z employees (HBR/ResumeBuilder Gen Z Workplace Survey, 2023)

● 91% of Gen Z employees report feeling stressed at work regularly. (Cigna 2022 Global Health Study)

● 46% of Gen Z workers say their job is harmful to their mental health. (APA 2023 Work in America Survey)

● In high-pressure industries (e.g., tech, consulting, healthcare), burnout is the #1 driver of early exits among Gen Z. (McKinsey Health Institute 2023)

According to SHRM, ineffective communication costs U.S. businesses up to $1.2 trillion annually.

Estimated $450K+ in turnover, reputation damage, and missed market
opportunities

DEI-misaligned companies underperform by 30% in innovation revenue

Why It Matters:

● Gen Z is the most racially and identity-diverse generation in U.S.
history. Failing to support inclusive systems leads to high attrition,
poor Glassdoor ratings, and reduced ability to serve diverse customers.

● Only 26% of Gen Z employees feel their employer is effectively
investing in their development. (Deloitte Global 2023)

● 1 in 3 Gen Z workers say they don’t trust senior leadership at their
company. (Edelman Trust Barometer, 2023)

● Only 19% of Gen Z workers feel their leaders "understand and support     their needs."(Gallup, 2023)

Boston Consulting Group reports that companies with diverse leadership teams generate 19% more innovation revenue.