Business owners know that a high rate of employee attrition can be seriously detrimental to their firm, and recognize that although turnover is inevitable, an increase in resignations will indicate a need to investigate the causes and develop action steps to stem the tide.
It’s always wise to face the situation head-on and not ignore the signs that there may be trouble brewing. Left unchecked, high turnover can have lasting repercussions, including the potential for:
High turnover leaves existing employees feeling insecure and stressed. The changes in staffing may impact their workload and also necessitate that they take on additional responsibilities until a replacement is hired and sufficiently trained to effectively do their job. Of course, the new employee is also feeling insecure about their lack of proficiency in the position and the combination can shake up the teamwork and cooperation that existed before.
Reduced Work Production
It goes without saying that overworked employees that are handling a double workload or new employees that have yet to fully understand how to execute the responsibilities of their job, will not be able to produce the same volume of work that was done by a more seasoned team of employees. This reduced productivity may cause you to miss client deadlines or to not be able to fulfill on their volume requirements.
Decreased Quality and Customer Satisfaction
For the very same reasons that productivity is negatively impacted by employee turnover, so too might you experience a decrease in the quality of the work that is produced leading to a corresponding decrease in customer satisfaction.
Increased Training Expense
New employees must go through a comprehensive and potentially costly onboarding experience during which they are fully trained on the requirements of their position. Although training can be time-consuming and hence expensive, it’s understood that the better the training, the easier it is to integrate the new employee into the “regular” workflow of their department and to ensure that they are “up and running” as effectively as required.
Having Written Procedures
Our clients have been plagued by these issue during the past years. Writing procedures and cross training employees prior to employee turnover has saved time, money, decreased morale issues and kept the Quality and Customer Satisfaction at the high levels that are expected from your company.
Overall, a high rate of turnover can negatively impact the overall productivity of a company for the short and long-term. Taking strides to stem a high rate of turnover is in a company’s best fiscal interest.
“To win in the marketplace you must first win in the workplace.” Doug Conant, CEO of Campbell’s Soup