According to the Missouri Small Business & Technology Development Centers, it costs an organization about one-third of a new employee's salary to replace the previous worker. Employers who experience a high level of turnover not only incur financial ramifications, but may also cultivate a poor work environment. Employee turnover can occur for a variety of reasons, many of which can be controlled by the employer.
Job stress can result from a variety of factors, such as an unmanageable workload or a demanding supervisor. The employee may have to take work home just to keep up, which can have a negative impact on her family and social life. The stress may become even more pronounced if the employee feels the compensation she receives isn't worth the heavy demands placed on her. Eventually, she may take another position in an effort to preserve her physical and emotional health.
An employee in a smaller company may reach the point where he feels he has accomplished everything possible in his current position, and is ready for a new challenge. However, there may be a dearth of suitable positions within the organization. At a larger company, an employee can get lost in the bureaucratic shuffle, which may limit his opportunities for advancement or lead to his labeling as one-dimensional employee with no value to the organization other than in his present position.
An employee who does not see eye-to-eye with her immediate supervisor may have little choice but to seek employment elsewhere. A transfer to another department or location is not always possible or practical, and a vindictive supervisor could make career advancement difficult. A supervisor who does not exhibit strong leadership skills or gives the appearance of not considering the best interests of her subordinates can also create frustration, which may lead to them to look for a new job.
New employees who are not trained properly may have difficulty developing the skills necessary to perform the job well. They may have difficulty meeting even the minimum required performance standards, which may eventually lead to their termination, or they may leave voluntarily out of frustration. Organizations implementing significant change may also experience turnover if they do not provide adequate training on new policies and procedures, especially if they have a veteran workforce in which employees may resist change.