The Hidden Costs of Employee Turnover

The Hidden Costs of Employee Turnover

Lost credibility. Turnover is a cost to management in two ways, : Management can lose credibility when it creates an environment with excessive turnover, and existing employees can become demoralized and decide to move on.

Slippage. When an employee is missing, the work that isn’t getting done has a price attached to it, . Lost sales, production delays and lags in new product introductions all cost your company money.

Customer loss. When a knowledgeable employee leaves, taking experience and customer service ability with him or her, that can have an impact on customer satisfaction. "Customer commitments are often not met, and the company loses important customers," "Dealing with trainees can be challenging. If you have a lot of unwanted turnover, customers can get annoyed or begin to lose interest in your business."