Company Churn, Sound Familiar?

High turnover is such a thing these days! Everyone in my network knows the costs listed below. But the real work that needs to be done isn't an easy lift right? You're not alone.

According to the Harvard Business Review "despite all their efforts since?the summer?of 2021 to bring frontline workers back into the fold, companies are struggling to rehire and return operations to a prepandemic normal. As a result they have failed to deliver products and services, lost revenue, and disappointed their customers." Sound like you?

According to writers Joseph Fuller?and?Manjari Raman. "In 2021 companies convinced themselves that the labor shortages they were experiencing were a passing phenomenon, and in response they trotted out the standard short-term fixes: raising wages by a few dollars an hour, awarding signing and referral bonuses, and even offering more flexibility in working shifts. But none of those measures were particularly effective."

To mitigate the costs of high turnover, companies often focus on improving their workplace culture, providing competitive compensation and benefits, offering opportunities for growth and advancement, and implementing effective employee retention strategies. These efforts can help reduce turnover rates and create a more stable and productive workforce.

Costs of High Turnover

1. Reputation and Brand Image: Have you looked at your Glassdoor recently? Both reputation and brand image in terms of its ability to retain talent and its attractiveness to potential hires as well as clients.
2. Customer Service and Quality: How do you do well with low tenure and experience on the team?
3. Loss of Institutional Knowledge: When experienced employees leave, they take with them valuable institutional knowledge and expertise that may not be easily replaced. This loss can lead to gaps in processes and decision-making
4. Recruitment and Hiring Costs: Not only filling the initial position but replacing people over and over. Costs of advertising, posting the same job and background checks can really add up.
5. Training and Development: Continuous cycle of training and development, increasing the overall cost of employee education.
6. Reduced Productivity: Disrupt workflows and reduce overall productivity, as existing employees may need to take on additional responsibilities or assist in training new hires.
7. Managerial Time: Recruiting, training, and managing new employees, which robs the company of focus on strategic initiatives and higher-value tasks.
8. Employee Morale and Engagement: Constantly getting announcements that a colleague has resigned or was asked to succeed elsewhere.

So, you have the tools now, assemble your team and change the future of your company and ensure your job stability.