A high employee turnover rate has numerous damaging effects on the entity. It can result in low workplace morale when the remaining employees are overworked due to the lack of an active workforce caused by the turnover. When employees leave the entity, the remaining staff members may be left feeling demoralized, especially if the gone employees are close to them (Saridakis & Cooper, 2016) . The remaining workers may decide to leave themselves, and when word spreads that others are leaving, negativity is likely to arise in the workplace. Hearing about a colleague's plan to quit might cause the most experienced workers to consider whether they should also quit.
High employee turnover can also lead to low productivity among the employees. Employee turnover contributes to the loss of experienced and trained employees that know the entity’s policies and goals. The workforce may become distracted from the entity's mission if team leaders or employees holding top positions leave. New employees may take considerable time to learn the required roles. Consequently, having inexperienced employees leads to reduced workplace productivity. In other cases, the entity may find it difficult to fill the specialized roles leading to a loss in its output and productivity. In turn, reduced productivity can lead to a reduction in product or service quality (Miller, 2017) . If the workers are unproductive, it means their tasks will not be completed efficiently. Resultantly, there is a high chance of the products being defective or the services being of poor quality. A high turnover causes an increase in inexperienced employees at the entity, and, in effect, they end up yielding sub-par quality work.
Delegate your assignment to our experts and they will do the rest.
High employee turnover is also detrimental to the entity since it reduces its profitability. There is a significant cost involved in replacing the employees who leave. The replacement expenses may be in the form of advertisement placement in the external labor market, candidate selection, induction, and training. Research carried out by The Center for American Progress showed that the median expense of turnover was twenty-one percent of a worker's yearly salary for all positions, excluding the executive and physician positions. In addition, the study showed that the cost of turnover for workers earning below $50,000 yearly was twenty percent of their salary (Boushey & Glynn, 2012). The high turnover costs lead to a reduction in the firm’s net profits.
The high turnover may lead to a reduction in overall customer satisfaction. When experienced employees leave and inexperienced employees are hired, the new hires may fail to meet the customers' current needs due to their lack of experience. Moreover, the new hires may provide poor-quality products or services, leaving the customers dissatisfied.
Type of Data
The entity should collect and analyze different types of data to identify the reasons for employee turnover. One type of data is employee reviews. Various platforms such as Glassdoor offer past and current workers the opportunity to share their experiences at the entity (Fazey, 2020) . The reviews can offer valuable information regarding the reasons why employees leave. The entity can also examine salary data and compare it to other companies operating in the industry. In this case, it can determine whether the employees leave due to better pay. Another type of data is employee benefits data. The entity can gather data about the benefits it offers to employees and compare the data with those of companies operating in the same industry. It can also gather data regarding work-life balance and, in this case, determine whether the employees are overworked. It can also collect and analyze data regarding the career ladders and paths of the employees to determine whether the employees are being offered the opportunity for growth and development. Survey data can also be helpful in identifying reasons for high employee turnover. If the entity is planning to make a significant change in its operations, it may administer a survey to determine the employees' opinions and concerns regarding the impending change. It can also assess the change in the worker’s level of morale and engagement.
Best Practices
The entity should implement best practices to reduce employee turnover. For instance, the entity can offer competitive pay and benefits. The entity can perform market research on wages and benefits and match or exceed the wages and benefits offered by competing companies. The competitive salaries and benefits can deter employees from leaving the entity for other companies. Such compensation packages increase employee motivation since they ensure the employees feel valued and appreciated by the entity. When employees feel valued, they feel better going to work daily. The motivation extends to the work they perform, and the presence of benefits such as bonuses incentivizes them to continue working for the entity. When the workers are being paid well, they become happy and focused on staying at the company (Allen, 2012) . In this sense, they become loyal to the organization and, this scenario leads to the reduction in the employee turnover rate.
Another best practice to reduce employee turnover is offering praise and recognition. When employees exceed expectations, the entity should show its appreciation. When they complete a difficult project, the management should congratulate them. The management should also recognize and appreciate such employees in front of other employees. Showering employees with praise in front of the entire workforce allow the workers to feel valued (Allen, 2012) . It also allows the other employees the product of working hard and exceeding expectations. The recognition creates an encouraging and positive work environment. Employees also feel desired by the entity and, in this case, become motivated to work for the entity. Resultantly, there is an increased likelihood that they will stay at the entity.
The entity can reduce its high turnover rate by offering growth opportunities to its employees. The growth openings can be in terms of career, professional or personal growth opportunities. The entity should provide employees with career growth opportunities by promoting them to higher ranks in the company. It can also provide the employees with more important duties, more impressive job titles, or bigger offices. The company should offer professional growth opportunities such as training, conferences, mentoring initiatives, or online courses (Fazey, 2020) . Such openings will allow the employees to sharpen their skills and abilities. Employees can feel more competent and are likely to appreciate the entity by working at the entity for a long time. Personal growth opportunities can improve the employee's social skills and enable them to become better individuals. Such opportunities may include social gatherings outside the workplace, remote working opportunities, and flexible work schedules. Growth opportunities, whether career-based, professional, or personal, allow the employees to meet their personal goals.
Hiring the right individuals can go a long way in reducing the entity’s high employee turnover rate. The entity should hire workers who fit its business culture. Such employees are likely to settle in well at the entity. They are also likely to thrive alongside other employees by having friendly relations with them. In this case, they are less likely to feel lonely. Resultantly, such employees are likely to stay at the entity for long. On the other hand, if employees do not fit in, they will have difficulty fitting in and, as a result, will seek other companies in which they fit.
References
Allen, D. G. (2012). Managing employee turnover: Dispelling myths and fostering evidence-based retention strategies . Business Expert Press.
Boushey, H., & Glynn, S. (2012). There are significant business costs to replacing employees . Center for American Progress. https://www.americanprogress.org/issues/economy/reports/2012/11/16/44464/there-are-significant-business-costs-to-replacing-employees/ .
Fazey, M. (2020). Human resource policy: Connecting strategy with real-world practice . London Anthem Press.
Miller, O. (2017). Employee turnover in the public sector . Taylor & Francis.
Saridakis, G., & Cooper, C. L. (2016). Research handbook on employee turnover . Northampton, MA: Edward Elgar Publishing, Inc.
