Losing an employee costs time and money, but you also must consider the effects of employee turnover on the rest of your team. It can negatively impact company culture, productivity, and overall satisfaction for both managers and employees. Let’s dive into the various ways turnover can hurt your business and discuss the best options for avoiding them.
How Employee Turnover Affects Your Team
The Employee Experience
First of all, a lackluster recruiting process that results in new hires that don’t fit the company culture, or are otherwise unqualified, puts stress on the current team. Existing team members lose time with their direct manager to the interview and onboarding processes. The time spent on the hiring process is generally carved away from the time managers would typically spend developing their current teams. Administrative and other time-sensitive tasks will likely take precedent over the current team’s development needs. Many development opportunities are lost, and existing employees may feel less valued.
As the poorly placed employee moves toward their eventual exit, the core employee base is forced to take on a heavier workload. In the case of absenteeism, employees must pick up more slack. In the case of poor performance, they face more work in the form of both rework and time spent resolving a series of poor customer experiences caused by poorly performing coworkers.
The Manager Experience
This redirection of energy can negatively impact the manager’s experience at work as well. The loss of development time is not just a problem for their employees. The process of creating relationships while developing individuals and teams is the primary source of professional growth for a manager. When this process is neglected, managers don’t have opportunities to build upon their coaching skill set. The team’s performance improvement efforts will suffer, and the drag on productivity will worsen. Now, the manager faces a new-hire learning curve as well as a slower improvement process for the existing team.
Another consideration is the impact on a company’s culture. Most companies are very conscious of the culture they are trying to create. Creating an environment in which teams are positioned to perform well requires a lot of education and reinforcement. Consistent reinforcement provides the traction needed for a positive culture to be formed and, consequently, take on momentum. A constant stream of departures and replacements makes the task infinitely harder than it already is.
All great cultures are about creating a sense of team as well as the belief that employees have a productive place to work and perform. When employees experience turnover around them, they tend to doubt both elements. They are faced with the tasks of rebuilding a positive team dynamic and learning to trust new team members. In the case of voluntary attrition, employees will wonder whether their environment is as good as they believe it to be. They might assume people are leaving for better opportunities and working conditions. This is a real risk to the state of employee morale.
Reduce Employee Turnover With Sprockets
Your hiring process has a significant influence on employee retention. The challenge is to differentiate between the factors that bring the strong, consistent performers and those that result in poor fits. By focusing on logic, data, and decision quality, you can mitigate the impact of employee turnover on company morale, culture, and productivity.
This is where Sprockets can help. Our AI-powered software predicts the likelihood that applicants will fit with your company’s culture and perform similarly to your most valued employee base. The combination of artificial intelligence, natural language processing, and over 80 years of psychological research ensures that hiring managers make consistent, high-quality decisions. These decisions will play a huge role in slowing the churn in the employee base and allow teams to get back to the business of development and innovation.