Dear CFOs,
Let’s talk about a costly misconception that’s draining your bottom line: the belief that employees leave primarily due to salary concerns. It’s a convenient, comfortable explanation – but it’s false, and it’s costing you a fortune.
The Chimps Are Running Amok
If you’ve read The Chimp Paradox by Dr. Steve Peters, you’ll recognize this as your “chimp brain” at work. For those unfamiliar, the chimp brain is the emotional, impulsive part of our mind that seeks immediate comfort and safety from perceived ‘threats’. In contrast, the rational “human brain” is capable of logical, rational, long-term thinking.
Blaming turnover on salary satisfies the chimp brain because:
- It’s a simple, immediate explanation.
- It avoids the discomfort of deeper analysis.
- It shifts the responsibility (threat) elsewhere.
But the truth is more complex. When employees resign, they rarely share the real reasons – whether it’s poor management, toxic culture, or a lack of support. Saying, “I got a better offer” is the easiest, least confrontational exit. The employee is using their chimp brain – and your chimp brain is buying it.
As strategic leaders, your job is to recognize when the chimps have taken control and engage the human brains to bring some rationale to the situation. In this case, that means digging deeper, identifying root causes, and taking action to address them.
Regain Control
In this article, we’ll empower you to rein in the chimps and give your bottom line a major boost. Let’s start by applying logic and reason in the search for truth.
- A LinkedIn Workplace Learning Report found that 94% of employees would stay longer if their company invested in their career development – proving that growth opportunities, not just pay, drive retention.
- A Deloitte study found that for Gen Z, salary is just one factor – career progression, workplace culture, and purpose are equally or more important in their decision to stay.
- A 2022 Work Institute study on retail employees found that only 12% cited pay as their primary reason for leaving, while 40% left due to poor management and lack of career growth.
Deep down, the rational human brain has always known that salary isn’t the full story. But if left unchecked, the chimp brain takes over, it’s been around A LOT longer then the human brain, it’s been on this rodeo many times!
The Hidden Costs You’re Ignoring
Turnover, absenteeism, and disengagement aren’t just HR problems – they’re financial liabilities.
Consider this:
A mid-sized retail company with 800 employees, a 45% turnover rate, and an average of seven sick days per employee per year is losing nearly £5 million annually.
Now, here’s where it gets interesting. Research suggests that businesses that address the root causes of turnover and disengagement can reduce these costs by at least 30%. In this example, that’s a £1.5 million opportunity.
The Cost of Solving the Problem
A full diagnostic assessment for a company of 500–1,000 employees might cost around £60,000, with an additional £100,000 for implementation of appropriate solutions and changes. That’s an almost 10x return on investment.
If any other business function offered the chance to reclaim millions with a modest investment, the boardroom would approve it immediately. But when the chimp brain is in charge, it convinces leadership that ignoring the problem is easier than making a long-term commitment to fixing it. As a result, the issue never even makes it onto the boardroom agenda.
Chimp Brain – 1 V Human Brain – 0!
The Data Is Clear: Employee Experience Drives Profitability
Ignoring these issues isn’t just short-sighted – it’s strategic negligence.
- Aon Hewitt found that a 5-point increase in employee engagement correlates to a 3-point increase in revenue growth the following year. For a £50 million company, that’s an additional £1.5 million in revenue.
- McKinsey reported that companies in the top quartile for organisational health achieve three times greater shareholder returns and double the return on invested capital compared to companies in the bottom quartile.
- Gallup found that highly engaged workforces experience 21% higher profitability and 17% higher productivity than disengaged ones.
CFOs, This Is Becoming Your Problem – More Than Ever
This isn’t just an HR issue – it’s a major business risk. Identifying and addressing resource-draining inefficiencies is exactly what CFOs are meant to do. Yet, when it comes to people risks, too many take a ‘shoulder-shrug’ approach, treating challenges in the employee experience as unavoidable ‘soft’ issues rather than as the strategic imperatives they are.
But the market is shifting. Employees have more choices than ever before, and companies that fail to address these risks will fall behind. Your competitors are already tackling these challenges, improving retention, and reaping the financial rewards. The longer you wait, the more talent – and profit – you lose.
Time to Take Action
It’s time to stop hiding behind the salary myth and start tackling the real issues driving turnover, absenteeism, and disengagement. Investing in employee experience isn’t a ‘nice-to-have’ – it’s a financial strategy that saves millions and builds a more resilient business.
The only question left is: Which brain do you want ruling your organisation’s finances; the chimp or the human?