Four reasons why employee turnover affects a company
Have you ever wondered why most of a company’s staff quit? High staff turnover could be caused by several factors that may be camouflaged in the daily routine.
However, sometimes attributed to the fulfillment of cycles of some employees or the entrepreneurial wishes of others, the high turnover of human capital is something that is increasingly common and worrisome due to the costs that this implies.
According to experts, having a high rate of staff turnover in companies can mean a big problem, not only because of the impact on the work environment, but also because of the economic factor, since it represents a considerable and very difficult to recover expense for the organization.
To cite an example, when a person leaves their position, the company incurs an estimated expense of up to 12 times the value of the salary, so one of the clear messages for all companies is to have good development opportunities within organizations.
Remember that the team is not a group of robots, they are people with feelings, dreams and concerns. When they feel that they are not valued in the organization and are not recognized by their bosses; they lose interest in fulfilling their duties. Tiredness from long hours and work overload are other factors that lead workers to worry a little more about their well-being than about anything else.
Reasons for high turnover in a company include lack of communication between staff and management, lack of resources and support within the organization for employees, unbalanced assignment of tasks and responsibilities, lack of appropriate training and an undesirable work environment.
At Mbc we want to communicate that we ensure stable professionals and work teams that allow us not only to fulfill specific tasks, but also complete projects with quality. We recognize that staff turnover affects different organizational spheres and for this reason we want to publicize the implications of continually changing people in companies.
1. Lack of productivity
The fact that a person resigns leads to opening a selection process, the process can take days, weeks or months depending on the recruitment strategies and the appropriate personnel to perform the search filter according to the description of the position being sought. The new candidate must receive induction on the vacancy and the way of working, have practice which leads to slow processes and low productivity.
2. Impact on the work team
High turnover not only affects the organization but also leaves a mark on employees for losing a colleague, which changes the environment and affects the organizational culture, while the new employee must adapt, and as long as the vacancy is not filled they will have to divide the work and the level of response will be slow. Remember that when we make constant changes in the workforce we weaken teamwork.
3. Associated costs
The costs of a high turnover are very high and it becomes a problem for any company. It should be considered that there is not only the cost of possible dismissal due to poor hiring or what we commonly call involuntary turnover, but also the cost of a new selection process, and a new induction. And if the induction is on behalf of a collaborator with a lot of experience within the company, it must be evaluated that the time that will be invested in training represents a price for low productivity.
4. Corporate image
Generally, companies that show high turnover are viewed negatively. Most likely, people perceive that something is wrong with the company and causes the progressive loss of workers.
Experts point out that staff turnover can be avoided with simple strategies. That is why it is important to recognize them for their accomplishments and let them know that they are doing their job and meeting job expectations. It is convenient to apply incentives and recognition. The spread of success is always transformed into contagion of positive emotions in the company.
It is also advisable that employees feel part of the organization, that they know them and that humane treatment is promoted on behalf of the company’s leaders and that their opinions are taken into account. Finally, training them and investing a little in their education is something they will always be grateful for. It is vital to invest in staff education, support and incentivize them, as this increases competitiveness and improves results.
We kindly invite you to get in touch with us by filling the following form which will immediately send your comments to our customer service team.
Our team connects with people on USA, Spain, Argentina, India, Venezuela, Canada, Australia, Japan and UK.