3 Reasons Why High Employee Turnover is One of the Worst Things that Can Happen to Your Business


High turnover is one of the most difficult things to deal with within an organisation. It affects the company’s vision and direction and erodes its culture. It also affects much more than management and stakeholders. Maintaining a steady workforce is key for any company that wants to run an efficient operation and keep all of their employees on the same page. It’s also a great way to increase your bottom line. Here are a few reasons why employee turnover is so bad for your business.

High Employee Turnover is One of the Worst Things that Can Happen to Your Business

Lack of Experience 

The first issue with high turnover is that you will have the floor filled with employees that have just newly been employed and may not be familiar with all the procedures. This not only affects the quality of their work but tons of other factors as well. A team with less experience will naturally be less productive but will also be more prone to not knowing certain safety protocols that could put their and other employees’ safety at risk. This then results in more money spent on compensation and fewer people on the floor.

It Can Destroy Employee Morale

A team without direction will eventually become confused, frustrated, and exhausted. They will then start losing interest in their job, and their work will suffer. Having to constantly babysit new hires is not something established workers will like, especially when they’re not being compensated for it. It then becomes a never-ending spiral as your old employees start leaving for better organisations.

This is why it’s important that you tackle the causes of employee turnover early, and one of the best ways to do so is to survey your employees and see if you can see any trends in employee morale. Software like Inpulse, for instance, will allow you to create personalised employee surveys and compile results for future reference. You will then be able to instantly spot patterns and see if they could’ve been caused by underlying issues. If you want to learn more, check out inpulse.com.


Last but not least, constantly hiring new employees will become a burden on your budget, and you might not get any real return on investment on it. You have to constantly spend to recruit employees. You might not be able to recruit them fast enough, which will affect productivity or increase the amount of overtime you have to pay. 

You then have to spend more on onboarding and training. And you also have to deal with those who will inevitably leave right after their training period. These are all costs that could be greatly reduced by listening to your employees and providing them with a satisfying working environment, competitive wages, and good benefits.

High employee turnover can become a nightmare for any business, and needs to be corrected as soon as possible. Not only will your bottom line suffer, but your employees as well.