- Posted by: Matt Muriel
- Category: Culture & Retention, Recruitment & Selection
It’s no secret that employee turnover can be costly for businesses. In fact, the average cost to replace a worker is estimated to be somewhere between 6 to 9 months of that employee’s annual salary! But while the financial impact of losing an employee is well-documented, there’s another, often overlooked cost associated with turnover: the impact it has on company morale.
Effects of High Turnover
When an employee leaves a company, it’s not just their job that’s left vacant—it’s also their social network within the organization. And as any good business leader knows, a strong social network is key to maintaining a healthy workplace. When that social network is disrupted by turnover, it can have a ripple effect throughout the organization, impacting not just the employees who directly worked with the person who left, but also those who were connected to them through the social network.
Turnover also takes a toll on morale. No one likes feeling like they’re working in a revolving door, and when employees see their colleagues leaving on a regular basis, it can make them start to question their own commitment to the company. This can lead to disengagement and decreased productivity, which only further exacerbates the problem.
Boosting Employee Engagement
Boosting Employee engagement can be as simple as committing to three easy steps that we outlined below:
- Communicate openly and frequently.
One of the best ways to keep your employees engaged is to ensure that there is open communication between management and staff. Employees should feel like their voices are being heard and that their input is valued. Try to have regular team meetings where everyone can voice their suggestions and ideas. You may also want to consider sending out surveys or conducting individual interviews on a regular basis.
- Provide opportunities for growth and development.
Another way to keep your employees engaged is to provide them with opportunities for growth and development. Employees who feel like they’re stuck in a rut are more likely to become disengaged. Offer training and development programs that allow employees to learn new skills and advance in their careers. You may also want to consider offering tuition reimbursement for employees who want to further their education.
- Encourage a healthy work-life balance.
A third way to keep your employees engaged is to encourage a healthy work-life balance. Employees who feel like they’re constantly working are more likely to become stressed out and burned out, which can lead to disengagement. Make sure that your employees have access to flexible work arrangements like telecommuting or flexible hours. You should also provide paid time off for vacations, sick days, and personal days so that employees can recharge and rejuvenate outside of work.
The silent but deadly impact of employee turnover should not be underestimated. Not only does it have a significant financial cost, but it also takes a toll on morale and can lead to disengagement among remaining employees. If you want to create a thriving business, it’s essential to focus on retaining your best talent. Investing in your employees and creating a workplace culture that encourages engagement and positive social interactions—it will pay off in the long run.