Control staff turnover

When employees leave your company, it costs more than just hiring new people. Understanding these costs can help you take steps to reduce turnover and protect your business.

Financial and resource costs of staff turnover

When a staff member leaves, your business may face several direct costs, including:

Exit tasks

When an employee leaves, you will need to spend time on exit interviews and updating payroll.

Loss of skills

Losing experienced or skilled employees affects your team’s strength.

Covering vacancies

You will have to pay for temporary staff or overtime until you fill the vacant role.

Recruitment expenses

You will need to allocate time and money to advertising jobs or paying recruitment agencies.

Hiring process

You will need to dedicate time to reviewing applications, interviewing, and selecting candidates.

Onboarding new staff

Once you have appointed a new employee, you will need to spend time and resources to induct and train the new employee.

Training

You will need to invest in developing new staff to help them reach full productivity.

Hidden costs of staff turnover

Seeing others leave can make remaining employees consider quitting.

Increased stress and absences

Remaining staff may feel overwhelmed, leading to more sick days.

Missed deadlines and workflow interruptions

Losing staff disrupts projects and daily tasks.

Lower productivity and quality

Customer service and work standards are likely to drop.

Reduced morale

Losing popular or skilled employees can hurt team spirit.

Damage to reputation

High turnover can make your company less attractive to future candidates.

Vicious cycle of high staff turnover

High staff turnover can create a cycle where low morale leads to more departures, which further lowers morale. This cycle can seriously harm your business if not addressed.

Reducing staff turnover saves money, keeps your team motivated, and maintains your company’s reputation. Taking practical steps to improve retention is essential for long-term business success. See reduce staff turnover.