Companies with high employee turnover generally have lower service quality, lower productivity and lower profitability. If not managed effectively, turnover can become a vicious circle that eventually can lead to company failure. Retaining employees is the foundation of every company’s success. There can be many different root causes of turnover and here are a few of them:
It costs money to replace an employee. Every aspect of losing an employee and hiring another has a cost: recruiting, hiring, onboarding, coaching and developing, and bringing the new hire up to the same level of productivity as the previous employee. The time lost for doing all of the above can cost months’ worth of work for the company. Employee turnover includes monetary and intangible costs, such as lost productivity, lost time and role expertise. High turnover often has a negative effect on the morale of the remaining employees. Whether workers are being terminated or leaving of their own volition, the remaining employees often have to take on additional duties when someone leaves, leading to resentment and lower morale. For those who want to estimate the actual cost of turnover, HSD Metrics provides a free online Turnover Cost Calculator.
The quality of an organization’s workforce determines its overall performance and profits. Performance in sales production and quality of service delivery can easily be traced to the quality of the organization’s recruitment and hiring practices for these positions. Check out our Pre-employment assessments USA for sales and service positions: Prevue Assessment, Customer Service Profile and First View Assessment.
Employee turnover is one of the most important issues facing business organizations. Preventing turnover requires listening to your employees. Learning why they leave is important but so is understanding why they stay. You can identify the common factors for both. Use Pre-employment assessments USA to match people to jobs, teams and managers. If managers don’t show recognition and appreciation employees will seek a different workplace. Assessing candidates for your specific positions will result in a better quality of hire. For more information on turnover go to: What Predicts Turnover?