Is your company constantly having to replace employees, especially in critical positions? Your company may be experiencing high employee turnover or a high number of old workers leaving your company in a span of a year.
Turnovers are not uncommon as employees come and go for many reasons. Some may leave the company because their contract has expired, retired, or the company is undergoing restructuring or layoffs. Others may leave voluntarily because they found a new career or are no longer happy with the company. But, if the number of employees leaving is high and constant, it may signify that something is wrong and affects your company if it is not resolved.
Here are the reasons why it is terrible to have a high employee turnover:
Lowers Employee Morale
High turnovers can affect the remaining employees’ morale, especially if the people leaving the company leave their tasks and responsibilities unfinished or unattended.
The remaining employees will be overworked since these tasks and responsibilities will be transferred to them, adding to their already challenging tasks. New employees will not escape this challenge as they will have to fill the void even though they are not experienced enough to handle their new assignments.
If the morale is low, it would be nearly impossible to attract new talent to fill up the gaps and keep those in the company already.
Another negative impact of high employee turnover is the low revenue the company can bring in. It is said that for every lost employee a company will have, it would lose thousands to replace them.
The reason for this loss is that the company will have to pay for hiring and training expenses and the loss of sales since the current employees cannot keep up with the demand from their customers. Loss of sales can also lead to a loss in customers if it is not resolved quickly.
If you need to pay a severance package, it will cost a lot of money, and it won’t have any returns on your expenses.
Poor Product Or Service Quality
Since there are fewer workers in the company and some may be inexperienced in their tasks, high employee turnover can reduce the quality of your products and services. This problem can be costly for industries where customer satisfaction is vital, such as the F&B, entertainment and hotel industries.
While there can be remedies to compensate for the lack of employees, it can still give customers reasons to check other companies for similar products and services.
Reduced Returns For Investment
Even if you can sustain your expenses and do your best to get new customers, your investment won’t get the returns you are hoping for because you are losing old customers and referred customers due to your inexperienced staff and poor quality products and services. Even if you get new customers, there is a high possibility they won’t return.
If your company is experiencing high employee turnover, check your workspace from top to bottom to see what is causing the turnover. Once you see it, apply strategies to improve the situation, show your employees that you are doing your best to improve your workplace, and give them reasons to stay on board.
Prevention is better than cure! Here are some of the ways to retain and motivate your employees:
The best ways to motivate your employees
Why Peer Recognition is Important at Work
How Can Companies Make Employees Feel Valued