Impacts of High Turnover
The Negative Impacts of a High Turnover Rate
High turnover rates can negatively affect a company and its employees in many ways. With the constant need to hire and train new employees, it is easy to veer from true mission and vision of the organization. By retaining employees, companies can provide a higher caliber workforce that positively affects the bottom line. Businesses can lower turnover rates by providing adequate training, rewarding employees for a job well done and creating a company culture of trust.
Revenue
Employee turnover has a direct impact on company revenue and profitability. For example, according to the “Organization Science” magazine, the estimated cost of a lost employee earning $8 per hour at a retail chain store is $3,500 to $25,000. Aspects contributing to this include hiring expenses, training labor, lost sales and productivity. Obviously, the revenue impact can be much higher depending on the industry, employee’s position and wage. If a severance package is paid, this is an expense with no return on investment. Consider, also, management labor costs in placing classified ads, reviewing applications, interviewing and training. Although some companies utilize a job-placement service, this is still an expense. Additional expenses result from lost productivity or a lost customer base.
Low Workplace Morale
A high turnover rate can result in low employee moral. This may stem from overworked employees who have had increased workloads and responsibilities due to a lack of an active or trained workforce. New employees are not immune. They too may suffer from low morale as they struggle learning new job duties and procedures. Continuation of this type of work environment can result in the company having a more difficult time attracting and keeping high-quality talent.
Deteriorating Product or Service Quality
Lower productivity and sub-par quality of work can result from a disruption in daily operations due to an overall low number of employees or inexperienced employees without complete training. This is especially true in industries where repetition and comfort level play a larger role than innovation. For instance, new hotel clerks may not provide top-tier customer service, as they are unfamiliar with the organization’s policies. This could manifest in situations as trivial as providing refunds from broken snack dispensers. Although a seemingly small issue, there could be a sizable impact on customer satisfaction.
Reduction in Marketing Return on Investment
Even if marketing expenses remain consistent in efforts to attract new customers, the return on investment is lowered if the company is losing return customers and customer referrals due to inexperienced staff or lower-quality products. This increases the cost of a one-time customer, lowering marketing return on investment.
Related Blogs
-
Jan 20, 2023How Outsourcing HR Can…
Complex labour legislation is among the many reasons why more companies are choosing to outsource their human resource (HR) function to specialists while they focus..
-
Dec 16, 2022Five Wounds That Hold…
One silver lining of the Covid-19 pandemic has been the surge in creative ways that organizations found to survive and succeed under dire circumstances. But..
-
Dec 2, 2022Why Startup Companies Need…
Developing an active HR function in your business show that you value your employees and their business in your enterprise Growing startups and small and..
-
Nov 4, 2022Your Company’s Greatest Investment…
In this competitive market, companies are struggling to not only retain but also grow their talent pools as they expand. Attractive salaries are important, but..
-
Oct 27, 202210 Tips to Motivate…
Nothing is better for the bottom line than employees who are motivated to work for psychic benefits. Are you looking for ways to motivate your..
-
Sep 30, 2022How To Successfully Promote…
Businesses used to have a relatively easy time finding talented employees to fill all their job vacancies. That changed in 2021 when 47.4 million workers voluntarily..
-
Sep 23, 2022No Experience Required: Does…
If you work in recruitment, you’ve probably heard the saying, “You need experience to get experience.” In job listings, we’re often guilty of writing “zero..
-
Sep 16, 20225 Anti-Racist Hiring Practices…
Wells Fargo recently found themselves in hot water after it was reported that some managers at the company were interviewing non-white candidates for jobs that had already..
-
Sep 9, 2022How To Motivate People…
As a startup founder, you’d usually spend a large part of your time trying to get various people to do new things. On one side,..
-
Sep 2, 2022Don’t Give Up On…
“Why do we keep following the process if it doesn’t work?” You’ve probably heard something to the effect of this before or have even said..
-
Jul 8, 2022Shifting Priorities: Rethinking Employee…
Since the pandemic started, HR professionals have had to juggle retaining their current employees while also attracting new talent. Employees have more options than ever..
-
Jun 24, 2022How to Know It’s…
HR activities at startups are often reactive in nature instead of proactive. That leaves gaps in the system. When starting their businesses, most entrepreneurs tend..
-
May 27, 2022When a Leader Is…
Not long ago, I received a call from an HR manager at a large corporation seeking an executive coach for one of their senior leaders...
-
Apr 15, 2022Make Your Meetings a…
I recently met with a group of managers to discuss ways to improve meetings. Our goal was to figure out how to create a space..
-
Feb 25, 2022Go Ahead, Reveal Your…
Talking about office disasters is key to better productivity and healthy competition. We all have our share of office-related horror stories. From the incorrect market..
-
Jan 21, 2022Can HR People Have…
A reader asks: I recently got a new job in HR at a small (under 100 people) company. This is my first job in the HR..
-
Nov 26, 2021Want to Build a…
Finding good people is hard, but it's the only way to build a company that can succeed in the long term. Not that long ago,..
-
Nov 19, 2021What Super Productive People…
In 2018, I came across a meme that was going viral on the Internet. It read, “You have the same number of hours in the day..
-
Nov 12, 2021How to Create a…
Creating a learning culture in the workplace is all about fostering an environment that empoweres people to pursue knowledge. This is important for individual evolution,..
-
Nov 5, 20215 Generations in the…
When the world seems more divided than ever, uniting generations within the workplace can create an advantage for your business. Every night, I turn on..
-
Oct 22, 2021What To Do When…
Let’s face it: Failing sucks. But lately, I seem to be doing it more than usual. Okay, that’s dramatic. The truth is that I’m making..
-
Sep 24, 2021Watch Out for These…
Artificial intelligence (AI) might be the way of the future in tech, gaming and smart-device industries. When applied effectively, AI can save on human employment costs and,..
-
Sep 3, 2021How To Lead Meetings…
It is crucial to tap into the different personality traits in your workplace to cultivate a supportive, inclusive atmosphere. There are extensive studies in personality..
-
Jul 30, 2021How to Boost Employee…
Through the turbulence of the past year, one of the constants for me has been my relationships with my colleagues. As a senior leader at..
-
Jun 4, 2021HR Transformation: Why Diversity,…
If there’s one thing the pandemic has brought into clear focus, it’s what each of us considers important—especially at work. Diversity, equity and inclusion, and..
-
May 14, 2021How To Manage Anxiety…
If you’re anything like me, you’ve found yourself in a situation like this a few times over the last year. A friend invites you to..
-
May 7, 2021Stop Using Job Titles…
Summary. What’s the first thing you focus on when applying to a new role or looking for a job? If you said job title, you’re..
-
Apr 9, 2021Five Things Your Boss…
Your boss may be extremely clear in spelling out your job expectations, setting goals, adding to your do-list and measuring your performance, but she may..
-
Apr 2, 2021How To Create An…
The COVID-19 pandemic has caused several changes in the workplace and future work behavior. With several countries going into lockdowns, every sector was required to..
-
Mar 19, 2021Is Your LinkedIn Profile…
People are checking you out on LinkedIn. Will you be embarrassed by what they find? Are you aware that 95 % of recruiters use LinkedIn..
-
Mar 5, 2021Five Tips For Supporting…
I got into management earlier than many of my friends and colleagues, and now I find myself becoming the go-to resource for when they're struggling..
-
Feb 26, 2021Why Every Organization Today…
It’s time all organizations make what could be the most strategic decision in decades regarding organizational structure: Move the learning and talent development functions out..
-
Feb 12, 2021How to Collaborate in…
How to adopt the “us versus the problem” rather than a “you versus me” mind-set. Your first step in resolving a conflict should be to..
-
Jan 22, 20216 Signs Your Teammates…
You can hire the best team in the world, but if they can't communicate well, you won't get very far. A business owner I know..
-
Jan 15, 2021Making Room At The…
Raising awareness is the key to inclusion. We’re all fighting against centuries of conscious and unconscious bias in the workplace. The first step is acknowledging..
-
Dec 18, 2020How to Give Creativity…
Today’s organizations spend considerable time and energy selecting and recruiting creative talent. And rightly so. Creative employees help their organizations survive and remain relevant in..
-
Dec 11, 202014 Key Steps To…
As a member of a team, you have a responsibility to help your co-workers, just as you’d expect them to offer assistance when you need..
-
Nov 27, 2020Your Job Satisfaction May…
As adults, we spend the majority of our waking hours at work. That means our experience at work determines a great deal of our happiness,..
-
Oct 23, 2020Your Guide to your…
You walk through the revolving door of the lobby toward the elevator, soaking in your surroundings—there’s not a familiar face in the building. You straighten..
-
Aug 7, 2020Why the month of…
As we put July firmly in the rearview mirror and enter August, I can’t help but reflect on how unique this month is every year...
-
Jul 3, 2020Consistency Is the One…
Consistency Is the One Rule in Building a Great Company Culture Company culture is a topic that’s been often explored by entrepreneurs and business analysts, but..
-
Jun 12, 2020Why Empathy Is One…
Why Empathy Is One of the Most Overlooked Skills in Business It was a sunny day in April. The air was crisp and the walk..
-
Jun 5, 2020How The COVID-19 Crisis…
How The COVID-19 Crisis Has Made HR One Of The Most Important Jobs Today n a matter of only a few months, the world as..
-
Mar 6, 2020Effective Job Search
The Key To Carrying Out A Productive And Effective Job Search In my experience as a career coach, I have found that people who are..
-
Feb 28, 2020Your Company Might Offer…
Your Company Might Offer High Salaries, But Does It Have Soul? It’s a well-established stereotype that large-scale companies are about as approachable as a concrete..
-
Feb 21, 2020Benefits of Stay Interviews
Retain More Employees With Stay Interviews Employees are quitting in droves, according to a recent Wall Street Journal article, backed up by hard data from..
-
Feb 7, 2020February Job Search
3 Things You Need To Know About A February Job Search There’s no bad time to look for a job, but there are seasonal trends..
-
Jan 24, 2020Hire Without A Resume
Hire Without Looking At A Resume We’re all more than what’s on our resume. But while a lot of leaders pay lip service to that..
-
Jan 17, 2020Meeting Don’ts
8 Things You Should Not Do In Meetings Meetings are perhaps the most powerful personal branding tool there is—when you master them. They also make..
-
Nov 29, 2019Job Offer Management
How To Turn Down A Job Offer Without Burning Bridges Sometimes you have to make the difficult decision to turn down a job offer. It’s..
-
Nov 22, 2019Spend your day wisely
How To Spend Your Working Day Wisely And Actually Get Things Done Time doesn’t discriminate. The CEO of a Fortune 500 company with an overloaded..
-
Oct 25, 2019Super power at Work
What Is Your Super Power At Work? Do you know that every person who works for you has a super power? Well, they do. Superman..
-
Sep 27, 2019The Interview Question
The Interview Question You Need To Answer Right: ‘Tell Me About Yourself’ “I bombed the interview.” This was a message I got from a brand..
-
Sep 20, 2019Belonging At Work
Belonging At Work Is Essential—Here Are 4 Ways To Foster It In the complex study of human psychology, one finding is remarkably consistent: our well-being..
-
Aug 30, 2019Effective Time Management
11 Signs You're Not Managing Your Calendar Effectively Time to admit there's a better way to stay on top of your appointments. If you’re like..
-
Aug 23, 2019Great First Impression
How To Make A Great First Impression At Your New Job You only get one chance to make a first impression, so make it count...
-
Aug 16, 2019Purpose And Values
How To Connect With Your Company's Purpose And Values Some employees feel fully inspired by their company's mission, vision and values. But they don’t just mindlessly glug the Kool-Aid—they connect on a deep,..
-
Aug 9, 2019Holiday Season Job Search
4 Reasons You Should Keep Up Your Job Search During the Holidays Now that the holidays are upon us, you may be considering taking a..
-
Jul 26, 2019Job Search Difficulties
3 Surprising Reasons Your Job Search Still Isn't Working It’s been months into your job search and you’re just about ready to pull your hair..
-
Jul 5, 2019Overloaded And Overwhelmed?
Overloaded And Overwhelmed? Four Things You Can Control When Your Workload Is Out Of Control Our research indicates a terrifying 43% of knowledge workers do..
-
Jun 21, 2019Employee Empowerment
4 Leadership Methods for Empowering Employees and Building Strong Teams Realizing your responsibility to lead can be scary, but done right, leadership breaks down to..
-
Jun 7, 2019Five Things Employees Want
The Five Things Employees Really Want I haven't managed to catch all the episodes of Undercover Boss this season, but there was one I knew..
-
May 31, 2019Thrive At Work
6 Steps To Unleash Your Inner Polymath And Thrive At Work In a previous article I explored some of the virtues of striving for a..
-
May 24, 2019Successful and Happy
The One Daily Action That Will Make You More Successful And Happier At Work In our fast-paced world where we have more to do than..
-
May 3, 2019Great Employees
What It Takes To Be A Great Employee: The Parable Of The Oranges Being a great employee pays off with better positions, higher pay, and..
-
Apr 25, 2019Your first Job
10 Essential Strategies To Succeed In Your First Job Congratulations, graduate! After the exhausting and stressful process of finishing school, searching for and landing your..
-
Apr 19, 2019Starting a New Job?
When You Start a New Job, Pay Attention to These 5 Aspects of Company Culture When you join an organization, you have a short window..
-
Apr 12, 2019How To Escape Procrastination
How To Escape The Procrastination Doom Loop When you imagine a highly productive person, you likely think of someone who focuses effortlessly on the job..
-
Apr 5, 2019Exceptional Employees
8 Clues That a Candidate Will be an Exceptional Employee Over the past 40 years, I have reviewed at least 30,000 resumes and LinkedIn profiles..
-
Mar 22, 2019Increase Employee Retention
4 Smart Ways to Increase Employee Retention Keeping your employees once you have them is a thorny problem in the staffing services industry. The difficulty..
-
Mar 15, 2019Things Happen!
Here's How To Recover From A Career Setback Whether you’ve botched an interview question, cancelled an important meeting last-minute or missed a typo in an..
-
Feb 22, 2019How to Assess Transferable…
How do you make sure you don’t lose out on those candidates who bring additional talents, interests, and unusual experiences that can be a real..
-
Feb 15, 2019Workplace Diversity
In an 8-Minute Animated Film, Pixar Just Captured Why Companies Still Struggle With Workplace Diversity Yes, it's a movie about a pink ball of yarn--but..
-
Jan 25, 2019Effective Job Interview
How to conduct an effective job interview As the employment market improves and candidates have more options, hiring the right person for the job has..
-
Dec 14, 2018Stay Focused Through the…
14 Ways to Stay Focused at Work Through the Holidays We’re in the midst of the holiday season, and as you try to juggle parties,..
-
Dec 7, 2018Great Employees Leave Great…
Why Great Employees Leave “Great Cultures” “We have a great culture.” We have all heard it. We have all said it. But what does that..
-
Nov 30, 2018On-the-Job Training
Young Workers No Longer Get the On-the-Job Training They Need -- So They're Finding It Elsewhere With companies training people less, the most valuable path..
-
Nov 23, 2018Help Your New Hires…
3 Ways You Can Help Your New Hires to Succeed Filling a vacant position is expensive, and unless you do these three things, it's liable..
-
Nov 15, 2018A Successful Meeting
Three Ways To Prevent Someone From Stealing Your Spotlight In A Meeting We've all been there at one point or another. You're in a meeting,..
-
Nov 9, 2018‘Bad’ Interviewee
That 'Bad' Interviewee You Just Talked to May Be the Perfect Match for Your Job Opening The 'pattern matching' that companies have long used to..
-
Nov 2, 2018When should managers overlook…
Why managers should overlook results in these situations By focusing on culture and people first, you can set your team up for success in the..
-
Oct 26, 2018Recruitment in Cyprus
Recruitment in Cyprus - Thoughts and Ideas from Advance Career Team Read the detailed interview published on TopJobsCyprus website and share your comments and ideas!..
-
Oct 12, 2018Integrators VS Segmentors
Are your employees integrators or segmentors? An organization has both integrators and segmentors. Being a segmentor is a tough ask. If you choose to be..
-
Oct 5, 2018Help Your Team Members…
Help Your Team Members Succeed (Especially When They're Tempted to Leave) Help that valued employee being lured by another opportunity think through what they are..
-
Sep 28, 2018Avoid Toxic Team Members
Are You Hiring a 'Team' Player -- or Someone Just Looking out for No. 1? How can leaders make sure they're not unwittingly inviting a..
-
Sep 21, 2018What Motivates You to…
What Motivates You to Work? That paycheck will never be big enough if it's the only reason you're going to work. Each of us respond..
-
Aug 17, 2018Social media can cost…
When 'What Happens In Vegas' Ends Up In Your Job Search What happens in Vegas really doesn’t stay there. That “funny” picture about that..
-
Aug 10, 2018Avoid Summer Slump
How To Improve Productivity For Yourself And Your Team This Summer July and August are historically bad months for productivity. It might be the warm..
-
Aug 3, 2018Emotional Intelligence at Workplace
How To Develop More Emotionally Intelligent Employees In the quest to develop leaders who will foster a culture of equity and inclusion in the workplace,..
-
Jul 20, 2018Rewarding Employees Wisely
5 Ways to Reward Employees When Raises Aren't an Option Many workers are doing double duty these days because employers either can’t afford to hire..
-
Jul 6, 2018Hiring the right people?
5 Steps to Hiring the Right People for Your Business "Hire slow, fire fast" is great advice, but it's not always easy to follow. The..
-
Jun 15, 2018Experience or Talent?
When to Hire Raw Talent vs. Job Experience Experience is a must for some jobs, but people with raw talent offer unique benefits. You have..
-
Jun 8, 2018Back On Track
How to get back on track when you’re having an unproductive day A rocky start shouldn’t dictate your entire workday. Do these things to reverse..
-
Jun 1, 2018Value of Office Communication
Why Office Communication is Highly Valued and Often Ignored A huge number of employees don't trust their bosses, and it's not hard to figure out..
-
May 18, 2018General Data Protection Regulation
Five Final Checks To Ensure GDPR Compliance It is just one week until the EU update to General Data Protection Regulation (GDPR) compliance deadline of..
-
May 11, 2018Employee Onboarding Strategies
Seven New Onboarding Strategies You'll See This Year According to a study from Equifax, more than half of all employees who left their job in..
-
Apr 27, 2018AI empowers HR
AI will make HR more Human, Strategic and Innovated Artificial intelligence (AI) is a source of both huge excitement and fear across the HR function...
-
Apr 13, 2018Negative performance feedback
Is giving negative performance feedback really negative? Negative performance feedback is a difficult topic to talk about. Does it help the performance? This feature throws..
-
Apr 5, 2018Inclusion in the Workplace
Inclusion Doesn’t Mean Including Everything and Everyone Inclusiveness is not about thought policing. It’s also not about turning everyone into a liberal. It’s a normal..
-
Mar 30, 2018Inspire Change In Your…
4 Ways To Inspire Change In Your Employees Have you ever listened to a speech that inspired you so much, you were ready to make..
-
Mar 23, 2018Employees Feel and Act…
7 Ways to Incent Employees to Feel and Act as Owners Building accountability into your business culture is a leadership process. It can't be driven..
-
Mar 16, 2018Don’t Shuffle People Into…
Don't Shuffle People Into the Wrong Job Just Because They're Already on the Payroll You grow your company by putting proven performers where you need..
-
Mar 9, 2018The Best Internal Candidate…
Why the Best Internal Candidate Might Be from an Unlikely Part of the Company Nearly a decade since Gallup released its bible, Strengths-Based Leadership, which..
-
Feb 26, 2018Minimise Workplace Negativity
Tips for Minimizing Workplace Negativity To Deal with Negativity in the Workplace, Use These 9 Tips Nothing affects employee morale more insidiously than persistent workplace..
-
Feb 9, 2018The future Workspace
Why a Coffee Shop Will Probably Be Your Workspace Within 10 Years As the gig economy grows, there are both social and scientific reasons why..
-
Jan 26, 2018Prepare new employees for…
The Best Way to Set New Employees Up for Success Create an onboarding program that's both meaningful and memorable Congratulations; you've just hired a terrific..
-
Jan 19, 2018First Hour, Day, Week,…
Do This In Your First Hour, Day, Week, And Month Of Your New Job Getting settled into your new job is the ultimate act of..
-
Jan 5, 20187 Ways Modest Leadership…
7 Ways Modest Leadership Increases Team Success When we imagine the traits of successful leaders, whether they are managers, high level executives, CEO's or owners..
-
Dec 29, 2017Grateful Workplaces and Engaged…
Grateful Workplaces and Engaged Employees All leaders need to ask themselves why happy and engaged employees are worth their weight in gold. If you’re a..
-
Dec 15, 2017Employee stress during Christmas
Managing employee stress during the festive period More than half of employees feel stressed in the weeks leading up to Christmas, with most calling for..
-
Dec 8, 2017HR in 2022
What's HR going to be in 2022? A Study sheds some light... A recent study shows us a glimpse of what HR might look like..
-
Dec 1, 2017Appreciating your employees
How to Avoid the No. 1 Reason People Leave Their Jobs William James, the father of psychology, stated that the most fundamental psychological need is..
-
Nov 24, 2017HR Function in 2024
Will You Be Leading an HR Function in 2024? Here are five things to look at to examine and determine if you’ve got what it..
-
Nov 17, 2017Employee Appraisals
Importance of Effective Employee Appraisals The performance appraisal may be one of the few times during the year where an employee and the reviewer, typically..
-
Nov 2, 2017The workplace is changing
From Cubicle To Coffee Shop - How The Workplace As We Know It Is Changing In the past few years we have seen a major..
-
Oct 20, 2017Employees don’t see link…
Employees don't see link between pay and performance Employers gave themselves only mediocre ratings on pay programme effectiveness. Employees are struggling to see the link..
-
Oct 13, 2017Working for small companies
Why You Should Consider Working For A Small Company Eighty-four percent of small-business employees are happy in their current job, according to the 2017 Aflac..
-
Oct 6, 2017HR’s key role in…
HR's key role in enlightened office design HR magazine and Landid's roundtable on the workspace of tomorrow explored how HR can positively influence facilities management..
-
Sep 22, 2017Workplaces still hamper productivity
Workplaces still hamper productivity Noise, lack of privacy and space are some of the factors causing the greatest dissatisfaction among office workers Nearly half of..
-
Aug 25, 2017Top 10 Benefits Of…
Top 10 Benefits Of A Workplace Wellness Program When Google opened up in the 90s it took a unique approach to employee satisfaction. In an..
-
Aug 4, 2017Is it time to…
The Best Ways to Reward Employees. Having an effective reward program in place can help solve many of your HR issues. Every company needs a..
-
Jul 21, 2017People don’t take HR…
People Don’t Take HR Seriously; Here’s Why That’s Dangerous Legacy beliefs like being the bad guy and a lack of strategic vision isolates HR, and..
-
May 2, 2017Employee Burnout
What causes burnout and how it can affect both the employees and the organisation How HR Can Help Prevent Employee Burnout An engaged workforce. It's..