Employee turnover is never a great thing for efficiency or productivity. And while you might know that turnover is a big deal, you may not have taken the time to explore why. How much does it cost companies to lose talent? And you might be surprised that the cost goes far beyond money.
Here’s a closer look at the high cost of employee turnover.
Impact on Employee Engagement
A top concern for companies facing high turnover is the effects on employee engagement. When someone leaves the organization, especially for complex reasons, it can cause a snowball effect. The key is to try to avoid an avalanche. Focusing on retention can create a more positive employee experience to prevent additional turnover.
Gaps in Company Knowledge
Turnover can also harm the overall knowledge that your company possesses. This is a problem with losing talent and creating a culture where individuals hold the entirety of specific expertise. You can avoid this problem by providing cross-training and upskilling so others have that information.
Increased Training Costs
When you face high turnover, that also means you need to increase staffing. With each new employee you hire, you raise your training costs. It also takes every employee several months to get fully up to speed, so productivity will likely be impacted.
Lost Revenue
When you lose staff and production falls, it will also affect your end user. Customers will see longer wait times and might become frustrated with the process. When you start to lose revenue in this way, you may find that it also creates a spiral that will continue to cause problems with deliverables.
Are you ready to hire superstar talent for your team? Contact Hutco to learn more today.