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What Are The Causes & Effects Of Employee Turnover?

Quote by:- "Always treat your employees exactly as you want them to treat your best customers." - Stephen Covey

High turnover rates can have a negative impact on a company and its workers in many ways. In the ongoing need to recruit and train new workers, it is easy to step away from the real purpose and vision of the company. By retaining employees, companies can provide a higher-quality workforce that has a positive impact on the bottom line as well as the employer brand. Businesses can minimize turnover by delivering sufficient preparation, rewarding workers for a job well done and building a corporate culture of confidence.

Here are some of the causes and effects of employee turnover.

Lack of Feedback and Recognition

When you stop providing input, you may be sending your workers away. Feedback is the first step towards ensuring that your employees succeed, so avoiding this process can be detrimental to their success. If an employee struggles, your truthful feedback will help them handle their workload and refocus. Ignoring the potential for feedback, or delivering unhelpful input, will leave the employee in a state of disheartening, struggling, and finally giving up on everything.

Low Workplace Morale

A high turnover rate will contribute to a low morale rate for employees. This could be attributed to overworked workers who have increased workloads and obligations due to a shortage of committed or qualified workforce. The new workers are not exempt. They too, can suffer from low morale as they struggle to learn new work duties and procedures. Continuing this type of work environment can make it more difficult for a company to attract and retain high-quality talent.

Deteriorating quality of product or service

Lower productivity and lower quality of work can result from a disruption in daily operations due to the overall low number of employees or inexperienced staff without complete training. It is particularly true in industries where the level of repetition and comfort plays a more significant role than creativity.

For example, new hotel clerks cannot provide top-level customer service, as they are unfamiliar with the policies of the company. This might show itself in the circumstances as insignificant as the delivery of refunds from broken snack dispensers. While a relatively minor question, there may be a significant effect on customer satisfaction.

Reduction in the Return on Investment Marketing

However, if marketing expenses remain stable in the attempt to attract new consumers, the return on investment will be decreased if the company loses repeat customers and referrals to clients due to inexperienced employees or low-quality goods. It raises the expense of a one-time buyer, reducing the return on investment on the market.

Poor Employee Selection

Finding a perfect employee is difficult but forcing a match with an employee that is not right for the company's culture or values will never end well. Even if you are desperate to fill that role, it is bad for you, your company, and the employee to pick a poorly matched employee. No one does their best work when they are dissatisfied, so an incompatible employee is unlikely to be pleased with their new role.

Employee Turnover is a global issue all around organizations, but this does not mean that you should take it easy. Some of the employees will always want to leave as they might have found a better job opportunity, or they start their own business. As witnessed employee turnover cannot be eliminated completely but reducing this can provide a better workplace that makes current or prospective employees stay longer and be loyal towards the organization.

You will reap significant economic benefits from lowering the employee turnover rate, and you should make every effort to retain good employees. They are your biggest asset, so investing in their job is key to ensuring a productive company.


Written by: Girish Rohra Chawla

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