If there is one key aspect usually forgotten (mistakenly or intentionally) by company owners, and that can lead to disastrous results to the organization in general, that would be Employee Turnover! It is really sad how simply such a factor can escape the minds of employers, but also their attitudes towards their employees, and hence sky rocket.
I’m not writing here to discuss what are the reasons of turnover such as lack of motivation, or appreciation,… (check out our articles under the motivation category to get more insights on this), the purpose is more to elicit the reasons youÂ don’t want to have a high employee turnover in your organization. Here is why:
This is the first obvious reason for making sure your employees stick with you. Generally speaking, you are investing in your employees, in all assets possible. You are at first spending time to get these employees (Recruitment time which is money, and additional actual costs for hiring). Once hired, you are spending time training them and getting them Â up-to-speed on the role they are supposed to perform. Finally you are paying them salary. You will also need to go through all of this investment for the new comer (recruitment cost, training, and salary)
Losing a lot of employees can affect you in so many ways, one of which would be bad reputation! A company that has lots of employees moving away will raise questions for both potential new job seekers, but also for businesses that would doubt the quality of service for an organization that has a high employee turnover rate, hence has potentially unhappy employees
Speaking of unhappy employees and bad reputation, many employees leaving the company is often related to lack of motivation, appreciation, and hence don’t expect your ex-employees to speak positively about your company. And with our social media advances, you can read viral messages bad-mouthing your company..Beware!
Employee Morale / Employee Productivity
So many employees leaving the company can surely have an effect on employee’s morale and their productivity. An employee seeing his colleague leave the company or be fired, might raise questions, or confirm the ones he already has. His productivity levels might go low, and this ex-employee might grab existing employees outside with him.
What other reasons you think a company should reduce employee turnover? let us know in the comments section below
Photo CreditÂ windy_sydney