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Strategy Dec 2, 2025 Sarah Chen 5 min read

The Silent Cost of Turnover: Why Knowledge Loss is Expensive

It's a scenario every manager fears: your top engineer, the one who knows the legacy codebase inside out, hands in their two weeks' notice.

You scramble to set up handover meetings. You ask them to "write everything down." But deep down, you know it's impossible to capture five years of context in ten days.

The Hidden Price Tag

Most companies calculate turnover cost based on recruitment fees and onboarding time. But the real cost lies in the knowledge gap.

  • Productivity Dip: The new hire takes 6-9 months to reach full productivity.
  • Repeated Mistakes: The team re-learns lessons that were already solved years ago.
  • Lost Relationships: Client nuances and soft knowledge vanish instantly.

How AI Changes the Equation

This is where AI-driven knowledge capture comes in. Instead of relying on frantic exit interviews, modern organizations are using AI agents to continuously document processes, decisions, and context.

By treating knowledge as a tangible asset that belongs to the company—not just the individual—you insulate your business from the inevitable shocks of turnover.


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