What is Employee Turnover
Employee turnover is simply the Leaving employees and their new replacements from requirements. Regardless to the reason of leaving such as resignation , layoffs , Dismissal the high turnover has negative impact on organisations . Increased recruitment and training cost ,loss of organisational domain knowledge decreased moral leads overall performance impact and then ultimately the revenue .
Employee Retention
It is obvious that organisation need to practice best employee retention strategies. Positive work environment, effective leadership , career development programs (Jackson, Randall S. Schuler and Jiang , 2014). Low absenteeism and increased employee retention is vital to put in to practice in HRM systems which would lead to improved job performance and organisational citizenship behaviour
Figure 2 (Tett and Meyer, 1993) Source Deloitte Review Issue 4 2009
Impact Evaluation On High Employee Turnover
High employee turnover leads to increased costs related to recruitment, training, and onboarding of new employees . additionally loss of productivity when experienced employee replacement with new where loss of institutional knowledge which will create decline of employee moral .(Surji 2013 )
Figure 3 Source - https://www.istockphoto.com/illustrations/employee-turnover
Conclusion
Employee turnover has several negative impacts on organizations, including increased costs, loss of productivity, decreased morale, loss of institutional knowledge, and potential damage to customer satisfaction and reputation . effective retention strategies contribute to a stable, motivated, and productive workforce, which is essential for organizational success.
Reference:
Surji, K. ( 2013 ) The Negative Effect and Consequences of Employee Turnover and Retention on the Organization and Its Staff . Vol.5. European Journal of Business and Management [Online]. Available at https://www.academia.edu/31439044/The_Negative_Effect_and_Consequences_of_Employee_Turnover_and_Retention_on_the_Organization_and_Its_Staff?form=MG0AV3 [ Accessed on 02nd March 2025].
Rajapakshe , W . ( 2018 ) An Analysis of Major Factors Affecting Labor Turnover in the Apparel Industry in Sri Lanka: Policy Alternations for Solving the Problem. International Journal of Academic Research in Economics and Management Sciences [Online]. Available at https://rda.sliit.lk/bitstream/123456789/2021/1/An_Analysis_of_Major_Factors_Affecting_Labor_Turnover_in_the_Apparel_Industry_in_Sri_Lanka_Policy_Alternations_for_Solving_the_Problem.pdf?form=MG0AV3 [ Accessed on 02nd March 2025].
Schuler, R. and Jackson, S. E. ( 2014 ) Human resource management and organizational effectiveness: Yesterday and today. journal of Organizational Effectiveness People and Performance [Online ] Available at https://www.researchgate.net/publication/263287140_An_Aspirational_Framework_for_Strategic_Human_Resource_Management [ Accessed on 02nd March 2025].
You are absolutely right! employee turnover can have a big impact on an organisation, not just in cost but also in team morale, productivity, and even customer satisfaction. When employees leave frequently, it can disrupt workflows, weaken team cohesion, and make it harder to maintain long term goals. It can also be a sign of deeper issues, like poor leadership or a lack of career growth opportunities. That’s why strong retention strategies like fair pay, professional development, and a positive work culture are so important. Keeping employees engaged and motivated leads to a more stable and successful organisation.
ReplyDeleteIt seems good. Please make sure to follow the proper citation format. Normally we don't include the initial of the author in the citations. A citation should appear before the sentence ends. In other words the citations should appear before the full stop. If possible try to some related multimedia content in future posts. Further, if possible relate your discussion to Sri Lankan context or your industry or your company.
ReplyDeleteEmployee turnover has created a massive impact on various industries, currently in Sri Lanka. The demand for skilled employees is very high due to a shortage of skilled workers. This has led to high employee turnover affecting all industries. The impact includes increased employee cost, reduced productivity and higher damage/reject rates. The government responsibility is to implement a national program to develop a more skilled workforce in Sri Lanka.
ReplyDeleteIt is a challenging situation in the Sri Lankan context now. You are digging deeply into the strategies of how the retention would work. I would like to add, identify the gap of generational shift, salary scales, offer skill building opportunities, career development programs inside the organisation, will retain the talented and experienced employees.
ReplyDeleteIn my experience,turnover not only increases hiring costs but also disrupts team dynamics and productivity.Retention strategies like career growth opportunities and employee engagement can make a big difference.
ReplyDeleteA well explored take on employee turnover! I agree that high turnover disrupts productivity and morale, making strong retention strategies essential. Investing in employee growth and workplace culture can make a big difference. Great read!
ReplyDeleteWell explained. You have shown how employee turnover affects organizational progress. Retaining good employees is an important topic that should be discussed in every organization today.
ReplyDeleteIt's obvious that leaving an experienced employee from an organisation would leads to reduce the productivity of the team for a considerable period of time on the other hand some companies believe that its an opportunity for them to in flush new ideas, technics, vision to their teams.however correct recruitment also play an crucial role on that aspect.
ReplyDeleteWorkplace environment is effect to employees turnover.if management makes suitable environment to work,it will be directly affected to employees retention.
ReplyDeleteThis blog is a much-needed reminder of the importance of analyzing the employee turn over. Loosing top talent is costly and negatively affect to the organization. If the management can address to the following issue it will surely retain the employees.
ReplyDeleteMismatched job expectations
Lack of career growth
Inadequate compensation
Poor management
Insufficient work-life balance
Lack of recognition
Job security concerns
Clearly summarized the key challenges organizations face and point out the importance of effective retention strategies in maintaining a motivated and productive workforce. Well done!
ReplyDeleteIt is true that turnover is a critical issue that organizations must manage carefully, as it leads to wasted time, cost, and effort. You have effectively addressed this topic and emphasized the importance of retention strategies. Well done!
ReplyDeleteIt effectively highlights the negative impacts of employee turnover and the importance of retention strategies in maintaining productivity and morale. Well done!
ReplyDeleteTo reduce employee turnover, focus on improving employee engagement, providing career development opportunities, offering competitive compensation and benefits, and fostering a positive work environment with supportive management.
ReplyDeleteHigh Employee Turnover is the talk of the town these days. Although internal factors play a pivotal role in this regard some external factors such as Sri Lankan political & economical instability has badly affected the country’s employee turnover thus losing many professionals especially in the fields like Medicine, IT and Banking.
ReplyDeleteThe companies investing in employee satisfaction
ReplyDeleteand engagement can lead to lower turnover rates.Employee turnover happens for a variety of reasons, ranging from individual to organizational factors.Among them coúntry's unstable economic situation, availabiliy of attractive job offers outside, toxic work place culture and poor work life balance are some of those reasons.
This article clearly explains the challenges caused by high employee turnover and emphasizes the importance of retention strategies to maintain a motivated and productive workforce.
ReplyDeleteThis blog post has successfully highlighted how employee turnover negatively affects a company
ReplyDelete