A recent survey by the American Management Association found that a majority of the 1,000 companies surveyed were not adequately concerned with experiencing employee turnover. In fact, only 9 percent stated that their senior management regarded the employee turnover situation as very urgent. Meanwhile, 30 percent claimed somewhat urgent, 39 percent claimed not so urgent, and 22 percent claimed their turnover situation was not urgent at all.
As it turns out, employee turnover rates are drastically underestimated. There are numerable reasons as to why your turnover rate should be well monitored. Here are a few reasons from Inc.com and Houston Chronicle’s Small Business online center to think about.
- Talent shortages are alive and well, considering the Millennial generation and those following have yet to obtain necessary experience and knowledge for business success.
- Low employee morale is prevalent when employees are overworked picking up the slack for the unfilled, recently vacated position.
- Low employee morale equals low employee performance.
- When a position unexpectedly becomes vacant is a bad time to realize your team needs more training to handle the new workload.
- Revenue is directly affected by turnover rates, due to the excessive amount of employee turnover expenses.
It is important to keep in mind the effects that your employee turnover rate can have on the overall wellbeing of your organization. If you aren’t working to maintain and develop the talent you already have, you’ll soon find yourself having to train fresh faces over and over.
Are you aware of the impact your employee turnover rate has on your organization? Try out our Turnover Cost Calculator for a better grasp on your organization’s turnover situation.