Education Blog

2 Ways Employee Turnover Can Impact Your Business

203 0

The cost of employee turnover can be rather astounding, despite popular belief. This is why recruiters should be focusing on long-term goals, by hiring people they feel to be trustworthy and dedicated.

Ultimately, the recruitment process should be about finding someone who will stay on board for many years to come, lest you liquidate your resources trying to find new candidates over and over again– if this is a situation you’d like to avoid, you ought to stop by IQ Partners to learn more about the ins and outs of effective recruiting for your business.

If your recruitment team is going to be successful, it’s important to know precisely how detrimental employee turnover truly is and why it ought to be stopped at all costs. No matter how successful a company may appear to be, if turnover is consistent, the business model can collapse from within. Ultimately, preventing this kind of scenario is the key to a prosperous company culture.

  1. It Takes Up a Great Deal of Time

Because so many hours can be put into finding the perfect candidate, it’s ideal that you avoid this process as much as possible. It’s more difficult than ever to not only hire the best talent available, but even attract them in the first place. Keeping the best of the best is an entirely different story.

Given that new hires will require a certain degree of training, you’ll be wasting time doing the same demonstrations over and over again, if your employees are more likely to be short-term hires.

Moreover, sales and product quality will plummet if your workers are required to learn on the fly, putting pressure on veteran workers who already know the ropes. People will constantly have to be cleaning up the messes that new employees are prone to make.

While this is an acceptable and understandable occurrence – starting a new job can be very difficult, and transitions tend to take time – it shouldn’t be happening consistently within one company. This is a recipe for disaster.

  1. It’s a Financial Inconvenience

Having to hire and re-hire a certain number of employees each and every year – or less – can put a lot pressure on your company’s finances.  First and foremost, Human Resources are hit hard when it comes to employee turnover.

When an employee leaves or is fired, protocols at most businesses include costly formalities, such as exit interviews, updating records and financial forms, cancelling benefits, severance packages, advertising for new employees, and many more items. Additionally, there are things like resume review and interview processes that take time and money away from HR and your recruitment team.

Turnover, however, isn’t just an issue that has to be dealt with by your HR department – it affects negative change and complications in all walks of business. These expenses are known as productivity costs, insofar as there are drops in production. For example, other employees will be forced to work overtime and unable to take on more work, as certain things can’t get done without a qualified individual on staff. High rates of supervision, coupled with lowered productivity, directly impact the performance of each and every employee.

Time and money are precious, this is why you ought to be proactive about hires by reaching out to your local recruitment experts as soon as a potential issue arises.

This is where the professionals at IQ Partners come in handy – in no time at all, they’ll have your company back on track with a long-term plan everyone can look forward to.