Naturally, hiring new employees is an essential part of running any business. But, when a new hire...
Indirect staff turnover refers to the cost and disruption to a business caused by the departure of a new employee who has not been with the company for at least 12 months.
Here are 5 points to explain the impact of this on a business:
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1. Recruitment costs
When an employee leaves within the first year, the business incurs recruitment costs again to fill the position. These costs include advertising, recruiting, interviewing, and training the new hire.
2. Reduced productivity
The process of recruiting, hiring, and training a new employee can take time, leading to reduced productivity and missed opportunities for the business. This can impact the overall performance of the team and the company.
3. Decreased morale
High turnover rates can decrease employee morale, as it creates a sense of instability and uncertainty within the team. It can lead to other employees questioning their own job security and reduce their commitment to the company.
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4. Lost knowledge
When an employee leaves, they take their knowledge, skills, and expertise with them. If the employee has been with the company for less than a year, this loss can be particularly damaging, as they may not have had the opportunity to fully transfer their knowledge to their colleagues.
5. Reputation damage
High turnover rates can harm a company's reputation, both among potential candidates and customers. Prospective employees may be wary of joining a company with a high turnover rate, while customers may lose trust in a company that is unable to retain staff.
Closing thoughts…
Indirect staff turnover caused by the departure of a new employee who has not been with the company for at least 12 months can be both costly and disruptive. Recruitment costs, reduced productivity, decreased morale, lost knowledge, and reputation damage are all potential consequences. By focusing on improving retention rates, businesses can reduce these costs and create a more stable and productive work environment.
