Keep on top of your employee turnover

It could be said that employee turnover is inevitable, you can’t retain 100% of your workforce forever. People will inevitably move on for various reasons. But if you don’t keep it to a low level, it can really cost your organisation.

High employee turnover has significant consequences for any company. When an employee leaves, you lose valuable knowledge, skills, and experience, potentially creating critical gaps in your organization. These gaps can disrupt operations, especially when key employees depart without a proper transition plan.

Additionally, the financial cost of replacing employees is substantial. The average cost of filling a vacancy, including labor expenses, is estimated to be around £6,000. For managerial positions, this figure climbs to £19,000, and it can be even higher for senior roles, especially if you outsource recruitment. On top of the direct costs, you also need to consider the time and resources required for onboarding and training new hires, which can slow down overall performance.

Beyond financial costs, high turnover can significantly impact employee morale. When people leave frequently, it often creates uncertainty among those who remain, leading to decreased confidence and motivation. In some cases, turnover can trigger a ripple effect, with more employees following suit as they perceive instability within the company. This cycle ultimately results in a drop in company performance and damage your company’s reputation as a desirable place to work.

In summary, high employee turnover increases costs, lowers productivity, and diminishes morale, which may even hurt your company’s public image. Therefore, it’s essential to have a proactive strategy in place to monitor and reduce turnover, including building a stable, motivated, and efficient workforce.

Contact us if you’d like help to keep employee turnover low!