The short version
In a Forbes Business Council post (December 7, 2021), Ryan Vet, founder of Third Hospitality, argued that the Great Resignation exposed how much employee turnover really costs. He cited Gallup's estimate of $1 trillion a year in turnover costs, then made the case with an example from his own wine bars: when a good bartender leaves, the regulars and their friends may leave too. His conclusion was that trust and culture, not above-market pay alone, keep people.
Ryan Vet · Article in Forbes Business Council
By late 2021, "I quit" had become a national trend with a name. Ryan Vet was living it from the operator's side. He was the founder of Third Hospitality and owned several wine bars, with a team that ranged from bartenders and baristas to marketing creatives and accountants.
This piece is a Forbes Business Council post, written by Ryan as a member of that council. Forbes Business Council is Forbes' fee-based membership council for business owners and leaders; its posts are contributed by members, not reported by Forbes staff.
Ryan's Big Takeaways
- 01
Turnover costs more than the salary it replaces.
Ryan started with the direct math: Gallup estimated turnover costs American businesses $1 trillion a year, with each voluntary exit costing one-half to two times that employee's annual compensation. Then he argued that the direct cost is the smaller part of it. Morale, relationships and institutional trust leave with the person, and none of them are on a P&L.
- 02
When the bartender leaves, the regulars may follow.
His example was a hypothetical drawn from his own business. "As someone who owns several wine bars, I am responsible for many people across many positions in many locations," he wrote. Frontline staff build relationships with regular guests, like a bartender and the Tuesday night crowd. If that bartender leaves, those customers may follow them to another wine bar, and so may the friends who came in during their shifts. One departure turns into several lost relationships.
- 03
There's no universal fix, but there is a principle.
He declined to prescribe above-market wages or three-day weeks for everyone, arguing that every business decision is contextual. What he did prescribe was fair treatment and a culture of trust. "So, take care of your people. If business has taught me one thing, the only consistent thing in every business endeavor is people and the time you have to spend with them."
Standout Quotes
Employee turnover is killing business.
As someone who owns several wine bars, I am responsible for many people across many positions in many locations.
Employees have a right to be treated fairly, and businesses should create a culture of trust. So, take care of your people.
If business has taught me one thing, the only consistent thing in every business endeavor is people and the time you have to spend with them.
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Frequently Asked Questions
What did Ryan Vet write about the Great Resignation?
In a December 2021 Forbes Business Council post, Ryan Vet argued that employee turnover was killing businesses. Its direct cost runs from half to twice an employee's annual pay, he wrote, but the larger losses are indirect: trust, morale and customer relationships. He illustrated it with an example from his own wine bars, where regulars may follow a departing bartender.
Is Ryan Vet a Forbes contributor?
No. Ryan Vet was a member of the Forbes Business Council, a fee-based membership council whose members publish contributed posts on Forbes.com. This article is one of those council posts, not staff-reported Forbes editorial.
What is Third Hospitality?
Forbes identified Ryan Vet as the founder of Third Hospitality, his hospitality company, in his 2021 and 2022 Forbes Business Council posts. In the December 2021 piece he wrote that he owned several wine bars.
Keep Exploring
- Appearance Forbes Business Council: Three steps to solving employee retention In a February 2022 Forbes Business Council post, Ryan Vet set out three steps to fixing employee retention: recruit for culture fit, prioritize the linchpin employees who drive most of the results, and repeat until retention is where it needs to be, rather than waiting for attrition to become a crisis. Explore →
- What I called on the gig economy in 2019, and what happened Explore →
- speaking Leadership Uncorked Explore →
Ryan writes one free essay a week. It's called Collide.
How generations are reshaping work and home. Practical, research-backed, and delivered weekly. Read it at RyanVet.com/collide.
