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Well you will get different opinions on that ... I think one should go for a replacement as world is full of talent where employer/HR can invest less on new joiner to gain better result. IF turn over rate is getting higher or you can say retention rate is getting lower then HR must have to investigate internal environment to identify behavioural issues.
HR can conduct EXIT interview of departed employees. After assessig of information, HR can sit with top of the organization as Country Director or Managing Director. If supervisor does anything wrong than HR call interview on this issue, why he did? If answer is not satisfactor then HR can go action against him.