How Does Staff Turnover Affect a Business?
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It's Cheaper To Keep Them
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Training a new employee can cost a company a lot of money, so it's better for the firm to keep the employees it has--and to keep them in a happy place. It's not only cheaper to keep them, but employees with a long tenure are more likely to have a sense of loyalty to the company.
One of the biggest issues employers face is how to find and keep good employees. However, it is very hard to attract new applicants if a company's high turnover rate is common knowledge. No good employee wants to waste his time and effort, and a high turnover rate will immediately send up a red flag that he should seek employment elsewhere.
High turnover interrupts the inner workings of any operation; it can also make managing harder, and its costs are outrageous. Employee morale will be extremely low, and productivity will be next to nothing. Motivation will be hindered, because the remaining employees are forced to pick up the slack for the employees who either quit or were terminated. They also have to deal with the stress of welcoming new people, only to lose them a few weeks later.
Employee Appreciation
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Having some room to grow is always an incentive for employees, and so is a little employee appreciation. Praising workers when they do a good job goes a long way. Some managers become drunk with power, and will only focus on what an employee is doing wrong, and this is definitely something a company should be cognizant of.
Also, having an open-door policy helps companies keep turnover rates down. While it's never OK to be friends with all of your employees, they should be able to go to a specific person to vent about certain issues. It is very important that the integrity of the company is never compromised. Always being honest and upfront with employees will build respect.
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Restaurants: The Revolving Door
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Restaurant employees go in and out the front door almost as often as the customers. Restaurant turnover rate is one of the highest in business, which is why most dining establishments are always hiring. Some restaurants lose up to 40 percent of their employees within the first 2 weeks of employment. The reason is that most of them do not want to partake in the unorganized chaos. In addition, new employees feel as if they are being set up for failure instead of success. Some restaurants do not even have training procedures outlined or implemented; they just throw the new people to the wolves.
The first impression potential employees get is a very lasting one, so if they do not feel as if they are being treated as an asset, they will go someplace where they will be.
Aces in Place
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If a good employee knows her worth, she wants to know that her employer has all of his aces in place, as well. High turnover rate should be a sign to a boos that his employees are unhappy--with the compensation, with working conditions, or with some other issue. Ignoring the problem will not make it go away, but it will cause your employees to do exactly that.
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