The Workforce Turnover Cycle Undermining Productivity at Major Tech Employers

Written by:

Steve Marcinuk

Date:

21 Nov 2025

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Epic Systems, Madison’s largest private employer, operates with a high-churn employment model that has significant implications for both its internal productivity and the surrounding housing market, according to Charlie Wills, founder and lead broker at The Wills Agency. Epic’s roughly 25% annual turnover rate creates an environment of constant onboarding and offboarding, affecting organizational continuity while generating a steady flow of new renters into the city.

The scope of the churn is stark. “They hire 4,000 people a year, but 1,000 people a year don’t make it, and they get let go in that first year. So they have quite the turnover,” Wills said. With one in four new hires leaving within 12 months, the company cycles through a level of staffing volatility that stands in contrast to Madison’s traditionally stable workforce.

This churn creates a predictable pattern: new hires arrive, remain uncertain about their prospects, and often leave before becoming fully integrated. The result is not only operational strain—requiring constant training and replacement—but also a workforce hesitant to put down roots. “They don’t always know if they’ll make it through the first year,” Wills noted. That uncertainty pushes most new Epic employees toward short-term leases and rentals, strengthening demand for apartments while limiting homebuying activity among the company’s substantial employee base.

Epic’s relocation support further reinforces this transient dynamic. While executive-level hires receive robust relocation packages, most entry- and mid-level employees—typically between ages 22 and 32—do not. “They’re not giving these massive packages to move to Madison,” Wills said. Instead, new hires receive a list of apartment buildings and a resource board of local realtors, leaving the majority to navigate the housing search independently.

Lifestyle preferences also shape the pattern. Epic’s younger workforce overwhelmingly chooses downtown Madison over the suburban neighborhoods near Epic’s Verona headquarters. “They don’t want to live out in Verona. They want to be in the mix,” Wills explained. To support this choice, Epic provides daily transportation from downtown to the Verona campus. “Every day, there’s buses that transfer in the morning and in the evening,” he said, enabling employees to enjoy urban amenities while commuting to a suburban workplace.

This concentration of preference intensifies competition in downtown’s already tight rental market. New hires join a crowded field that includes university students, faculty, and young professionals. “There’s a lot of energy downtown. That’s where the kids want to be,” Wills said, describing how limited inventory and high demand keep occupancy rates elevated.

For real estate professionals, Epic’s employment model creates a niche but limited opportunity. Wills’ agency assists “a handful of Epic employees” each year, mostly executives or referrals from longer-tenured staff. The company’s internal hierarchy and fast turnover contribute to a referral culture driven more by personal networks than by broad demand for home purchases.

Ultimately, Epic’s rapid hire-and-replace cycle has become a defining force in Madison’s housing dynamics. It sustains high demand for rentals while contributing little to long-term homeownership growth. The lack of relocation incentives, the youth of the workforce, and the downtown-oriented transportation system all reinforce a transient employee population.

As Epic maintains its high-volume hiring and turnover structure, the effects reach beyond workforce stability. The city’s housing market continues to absorb a stream of short-term renters rather than long-term residents—reflecting how tech-sector churn shapes not only corporate productivity but also the communities where these employers operate.