What is Employee Turnover and How it Hurts the Employer?

What is Employee turnover?

Employee turnover is referred to the percentage or number of employees leaving the employer and refilling the gap.

High turnover translates to a loss for the company. If the case is losing poor-performing employees, it’s an advantage for the institution, but high turnover is comparatively negative.

Understanding the turnover’s impact on the organization and working according to it is crucial for the team’s human resource management.

Impact on the Employer

As it is hard for the Human Resource Management and team to estimate the impact, there can be great threats of employee turnover on the organization. More or less, the common effects are as follows:

Less Profit

The productivity of the entity gets low, thus leading to less profit.

As the business takes months to years to achieve profitability, unexpected things like employee turnover become much more time-consuming for a new venture to make profits.

Low Performance

Due to employee turnover, the number of employees becomes low, thus decreasing the performance of employees, as it would be added burden to the existing employees to replace the exiting employees.

Low Morale

Typically morale is weak in high turnover organizations. Due to the lack of an active and trained workforce, the responsibilities and workload on the current employees increase, resulting in low moral values.

If it continues further, the organization takes much more time to get back to a suitable place.


To make things normal, some business entities seek the help of consultants to come out of the rust. It requires great effort and focuses on fixing this issue.

As you invest money, time, and resources in correcting the generated turnover, it diversifies the business and marketing to new customers and thus decreasing the performance.

An organization must do everything in its power to tackle employee turnover and retain its labor pool.

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