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Hiring a new employee is a costly and time-consuming process, and when that employee doesn't stick around for very long, it can have serious consequences for a business.
Below are 5 points on the loss of business when hiring a new employee who does not stay with the company for at least 12 months:
1. Lost revenue
When a new employee leaves a company after a short period of time, it can have a significant impact on the business' revenue. The investment made in hiring and training the employee is wasted, and the company must start the recruitment process again, further delaying revenue growth.
2. Decreased morale
High employee turnover can negatively impact the morale of the remaining staff. They may feel overworked, undervalued, and demotivated, leading to decreased productivity and increased turnover.
3. Reduced customer satisfaction
A new employee who is not fully trained or who does not stay with the company for long can negatively impact customer satisfaction. Customers may become frustrated by mistakes made by new employees, leading to lost business and a damaged reputation.
4. Increased recruitment costs
Hiring a new employee is a costly process, including advertising, recruiting, interviewing, and training costs. When an employee leaves after a short period, these costs are wasted, and the company must repeat the process, leading to further expenses.
5. Reduced productivity
A new employee who does not stay with the company for at least 12 months can also negatively impact productivity. The time and resources invested in training the employee are wasted, and the remaining staff must pick up the slack, leading to reduced productivity and increased workload.
Overall, the loss of business due to the departure of a new employee who does not stay with the company for at least 12 months can be significant. It's essential for businesses to invest in employee retention strategies to reduce turnover and mitigate these negative impacts.