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Levin HR Consulting

Behind the Numbers – The Impact of Turnover

To understand the direct cost of turnover to your organization, go to our turnover assessment calculator.

 

Turnover is costly to your bottom line and presents other HIDDEN COSTS that impose a significant distraction from achieving your goals. This degrades the success of your business. The hidden costs of turnover influence your productivity, company morale, and business continuity in the following ways:



 

Productivity:

  • Some turnover includes losing top performers, supervisors, managers, and senior-level staff.

  • Intellectual knowledge walks out the door.

  • Key projects and deliverables are at risk.

 

Morale:

Loss of team members influences others within the organization to:

  • Wonder what the company is doing wrong.

  • Question whether or not management knows what they are doing or, worse, cares.

  • Trickle down and up effect influences others to follow.

 

Business Continuity:

  • The challenge of replacing top performers.

  • New hires take time and effort to get up to speed.

  • Customers feel the impact.

  • Strategic plans may be impacted.

  • Succession planning gets sidetracked. 

 

The first step to understanding turnover is to identify the reasons people are leaving. The most common reasons include:

  • Poor management

  • Lack of opportunities for career advancement

  • Job mismatch

  • Workload

  • Feeling underappreciated

  • Lack of motivation for the type of work being performed

  • A disconnect with the company mission and/or vision

  • Issues with compensation

 

How to Begin: Understand the Roadblocks

 

It is important to learn from your team what they are experiencing and how they feel about your workplace. To develop a baseline of understanding, conduct an objective, confidential, employee engagement survey. Be sure to customize the survey to your company’s unique issues. Your goal is to understand whether your team is experiencing psychological safety in your workplace. Ask probing questions such as:

  • Do you know what is expected of you at work? 

  • In the last seven days, have you received recognition or praise for doing good work? 

  • At work, do your opinions seem to count? 

  • Does the mission/purpose of your company make you believe your job is important? 

 

A useful way to conduct an employee opinion survey is via an online survey tool, such as SurveyMonkey, which enables you to collect and analyze the data.

 

We are equipped to help you develop and customize an engagement survey. With the survey, we will collect and analyze the feedback you need to develop a strategy for reducing turnover by implementing psychological safety for your team.

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