High rates of turnover have a negative impact on all businesses, but the toll is even greater on SMEs where margins are tight. At a time when the cost of running your business is increasing anyway, the last thing you need is to invest time and money into a new employee for them to leave within the first two years. High turnover is likely to have a wide ranging, negative impact on many areas of your business including:
Additional costs: for the first two years after an employee joins a business, it is . If that employee leaves during this time, your business will have to absorb that cost a second time for their replacement.
Poor output: high turnover can impact an SMEs output directly and indirectly. Firstly there is the gap left by the employee that is leaving until their replacement has been found and trained to a similar standard of productivity. Then there is the impact high turnover has on other employees who may have to cover, resulting in lower outputs in other areas of the business.
Low morale: high turnover can also negatively impact morale and the company culture within your business. It can be unsettling for other employees when a high number of people are leaving an organization. If this has an impact on the remaining employee’s mental health it is also likely to .
Post Covid-19, . In many industries it is an employee’s market with many negotiating better terms and conditions of employment. Smaller businesses are not immune from this and statistics from the National Federation of Independent business showed 80% of .
It is easy to see why it is more important than ever for smaller businesses to take a proactive approach to hold onto the employees they have.