Causes, Consequences and Control of Employee Turnover
Retaining qualified and experienced employees is one of the primary concerns for many companies. Not only does it cost money to recruit and train new employees, but the turnover of experienced employees also reduces the number of employees that understand the way your company does business. When you understand the causes, consequences and control of employee turnover, you can justify putting company resources into retaining the current staff.
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A Divide
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One of the causes of employee turnover is a divide between employees and management, according to the Reference for Business website. When managers don't make themselves available to employees or don't take an active role in departmental operations, employees tend to feel a lack of respect from management. Employees are not considered part of the element that resolves company issues, and this divide results in employee turnover.
Opportunity
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The company that does not offer employee opportunity tends to see high turnover rates, according to the Missouri Small Business and Technology Development Centers. Companies that do not have a career path for employees and do not work with employees to offer the training necessary to move up in the organization often see employees that are disgruntled. A company needs to provide employees with ways to reach their career goals and that includes additional responsibility along with higher pay. Companies should also offer employees ongoing educational assistance such as tuition reimbursement to help employees develop their skills.
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Consequences
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The consequences of high employee turnover are low productivity, higher personnel costs and loss of customer satisfaction, according to the Reference for Business website. When experienced employees leave the company, it takes time to get new employees up to speed on those job duties. In the meantime, production suffers and company output and quality drops. It costs money to recruit, hire and train new personnel. By reducing turnover, a company can also reduce many of these costs. Employee turnover creates a gap in employees that have the experience in company operations necessary to talk to clients. The drop in product quality because of high turnover also has a negative effect on customer satisfaction.
Control
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Retaining employees and reducing turnover requires a management commitment to creating an employee-friendly workplace. Managers should work with employees to create career development plans, and then meet with employees regularly to gauge progress and make any necessary changes. Open communication between management and staff is a powerful way of reducing employee turnover and creating a productive work environment. Management should be mindful of employee opinions, and solicit those opinions through means such as a company suggestion box, an "open door" office policy and quarterly company-wide meetings.
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