Posts Tagged with "turnover"

#12b: The high cost of high employee turnover.

High employee turnover is one of the greatest threats to the long-term success of business. Consider, first, the monetary cost of an employee leaving. Around 20% of all people-related expenses are attributable to turnover:Read more →

#12b1: Do you know your company's retention rate?

Despite the dire consequences of high turnover, a company's retention rate is rarely known by its talent team or senior leaders. It is even more infrequently shared across the organisation.Read more →

#12c: How high turnover damages performance and culture.

More damaging than direct loss of investment in your employees, but less visible, is the effect of high turnover on team performance and company culture. A team that loses a key member not only loses their expertise, but also suffers a loss of cohesion.Read more →

#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.Read more →

#18a: Turnover loses not just the person but their knowledge.

Since organisational knowledge lies within its people, there is great hidden cost in layoffs and high turnover. Laid off staff take with them part of the organisation's learning; this partially offsets whatever expense is saved in salary cost.Read more →

Reference #154: Peopleware

Employee turnover costs about 20% of all people-hour expenses. This is due to the cost involved in hiring a new employee, as well as the several months it takes for the employee to be fully productive.Read more →

Reference #155: Peopleware

High-turnover companies have a culture of short-term thinking.Read more →

Reference #156: Peopleware

Some companies use promotions as a way to retain key talent in a high-turnover environment.Read more →

Reference #157: Peopleware

High turnover leads to a vicious cycle. Less money is spent on training since employees do not stay long. Since the company invests little in its employees, those employees have little hesitation to move to another company. And so the cycle grows.Read more →

Reference #181: Peopleware

Organisational learning is limited by turnover.Read more →

Reference #187: Peopleware

In response to the trend of employees leaving a company to become an entrepreneur or consultant, companies are adopting the practice of allowing some employees to define their own role.Read more →