Negative Effects Of Employee Turnover

1. Definition

Employee Turnover is defined as ‘voluntary terminations of members of the organisations’ (Hom and Griffeth). Employee turnover is also known as the measurement of how long employees are going to stay with the organisation and how often they have to be replaced. Tette and Meyer (1993) also defined it as “Conscious willingness to seek for other alternatives in other organizations”. Employee turnover is a common element in the business cycle. Regardless of how contented your employees are, they will tend leave, either due to retirement, relocation or even due to changes in their lives.

Staff turnover occurring in any organization might be either voluntary or involuntary. Voluntary turnover refers to termination initiated by employees while involuntary turnover is the one in which employee has no choice in the termination as it might be due to long term sickness, death, moving overseas, or employer-initiated termination. (Heneman, 1998).

Turnover differs across

It also paves the way for needed changes and fresh perspectives.

3.2 Negative effects of Employee Turnover

The reason why most employers are eager to hold onto their workers is that losing a worker costs money. Costs related to employee turnover include covering the vacancy, advertising the position and training new hires. The loss of knowledgeable employees can also lead to a "brain drain," which can make the company less competitive. In addition to these obvious costs, there are hidden costs of employee turnover. These include stress on existing staff, lower productivity and reduced customer service.

As researcher Dan Bobinski M. Ed reports on the website Leadership Development, in 2006 the average cost or replacing an employee was calculated as $17,000, with the cost of replacing high level workers well above this