#12d: Low retention leads to low employee training leads to low retention leads to...


In addition to the short-term bias on strategic product and development decisions, high turnover can also affect how a company treats its people. A high turnover company can fall into a vicious cycle by deciding to spend less on training for its employees, leading to further reduced tenure.

As employees are unlikely to stay for an extended period (and hence provide a justifiable return on investment), employers are disincentivised to invest in their people. This fuels turnover as employees leave to seek more growth opportunities and an environment that values them. This reduced tenure justifies the company's decision to deprioritise investing in their employees — and so the vicious cycle spirals.

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© Braden Moore.RSS