Business Problems Caused by High Turnover of Staff

This research paper discusses the negative impact of high employee turnover on businesses, including loss of morale among remaining employees and loss of productivity and performance. The paper suggests solutions such as staff motivational schemes and hiring new employees, and emphasizes the importance of retaining employees. The paper includes references to relevant books and journals.

Research skill
(Business problems caused by a high
turnover of staff)
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Problem one: Loss of morale among the left out employee........................................................3
Problem two: Loss of organisational productivity and performance...........................................4
Solution for problem one: Using staff motivational scheme.......................................................5
Solution from problem two: Hiring new employees...................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
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INTRODUCTION
Thesis statement: Labour turnover has many cause and effect on the organisation.
Employee turnover refers to total number of workforce leaving the company over certain
duration of time. Employee turnover includes both exiting employee voluntarily as well as
employee are being fired or laid off by the company. Employee turnover in the company is
calculated as total number of employee leaving the organisation divided by total number of
employee working in the company. High employee turnover in the company impact the
organisation in negative manner. Those company were employees are leaving the organisation
may create a significant impact on overall performance (Li, Huang and Song, 2019). Retention
of employee in the company for longer time duration is very important because it also helps in
building a strong market image as well as reputation. For the businesses it is very vital to track
the rate of labour turnover. This is because it helps in knowing the reason of employee existing
from the organisation. There are many reason for high turnover of employee in the company
some of them are: lack of career opportunity, lack of motivation. Toxic working environment,
lack of work life balance and many more (Li, Bonn and Ye, 2019). These all factor largely affect
the employee and force them to leave the organisation. Sometime employee also left the
company when organisation fired them. This happen when employee does not perform their
work as per the company policy or there is some misconduct conducted by them. In recent time
many of the company are focusing on increasing the motivation level of the employee this is
because it helps them to control the situation of high employee turnover. Some of the scheme
which they use is providing feedbacks, rewarding and appreciating, extra leaves, fun session and
many more. Thus, it is very crucial for the companies to look at the factor of high employee
turnover (Skelton, Nattress and Dwyer, 2019).
MAIN BODY
Problem one: Loss of morale among the left out employee
The foremost problem which will be faced by the company due to high employee turnover
is Loss of morale among the rest employee. The leftover employee will not feel motivated if they
see most of their colleagues and peer exist the company. Organisation is the place where
employee build relation with one another and this relationship motivates them to work within the
organisation in effective and efficient manner (Giunipero, Denslow and Rynarzewska, 2022).
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But if this relationship breaks the motivation among them to do job also reduce. Their motivation
reduce which also affect their job performance in large manner. Lack of morale among the
employee also developed due to high work pressure and work load. As the peers left the
company their work shift among the rest and this create burden on them. This may also stem
them as with high work load they face the problem of balancing their personal and professional
life in better way. High employee turnover impact the existing employee in drastic manner. Their
morale to work within the company decrease over the time and this will also create the situation
when they also think to resign from the organisation. Loss of existing staff morale also crates
negative working environment in the company (Yu, Park and Hyun, 2021). The surrounding of
the organisation becomes toxic which reduce the productivity of the company in large way. Lack
of communication, lack of trust, dishonesty much more problem will also emerge out among the
left out employee. Thus, high employee turnover impact the existing employee in wider way.
Problem two: Loss of organisational productivity and performance
Another business problem that will be faced by the company due to high employee
turnover is loss of organisational productivity and performance. Companies productivity and
performance reduce in large manner. Employees are the biggest assets of the company they are
the people who works for the company. They produce or manufacture goods and service for the
company and in the absence of them organisation can perform their business operation as well as
produce good and service. Workforce leaving the company do not mean that employee is leaving
the organisation with them knowledge, experience, skill, abilities and many more are also
existing. This all directly impact the production level (Coetzee and van Dyk, 2018). Companies
who doesn’t possess the right number of staff within the boundaries of the workplace do not
provide the required amount of good and service in the market. The supply of the business
reduce which will impact their market reputation as customer demand cannot be fulfilled. It is
very important to have the right amount of workforce in the organisation. Second impact of high
employee turnover is one organisational performance. The organisational performance will be
lower and this low performance will hinder the market reputation and image of the organisation.
Brand image means the perception of the company in the mind of the buyers and this perception
would be bad when there is high employee turnover. Lack of organisational productivity and
performance also means that the competitor can easily compete with the exiting brand in sound
way (Rajamohan, Porock and Chang, 2019).
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Solution for problem one: Using staff motivational scheme
Low employee retention in the organisation creates various issue in an organisation and
one of the problem that is created by the is low staff morale among existing employee. To deal
from this issue company need to adopt the strategy of motivational scheme. Using these scheme,
they can boost the motivation level of the staff in better way. Lack of motivation among the
employee impact the performance of the worker with their work as well as alignment of the
worker with the work will also low. So all these problem can be reducing by implementing
motivational scheme on the employee. The foremost scheme which can be used by the company
is providing flexible working hour (Aguenza and Som, 2018). Having flexible working helps the
employee to manage their work in more effective manner. This will also reduce the pressure and
workload among them as they can carry out their daily work as per their convenience. High
employee turnover also create the problem of workload among left out employee so to manage
their pressure and load flexible working hour is the best approach. This will also provide them
the time to manage their personal and professional life as well as reduce stress among
themselves. Another strategy that they can use is rewarding and appreciating the efforts put by
the employee to manage the workload and increase productivity. This will help as employee feel
valuable as well as they also feel that their efforts are appreciated by the organisation (Wan and
et. al, 2018).
Solution from problem two: Hiring new employees
The employee turnover creates problems for the company as it decreases their performance
and productivity. For dealing with these problem the company need to hire new employees in the
organisation for operating their business in appropriate manner (Becker and Bish, 2021). High
employee turnover create many position vacant in the organisation due to this company does not
perform their smooth performance. Hiring of new employees help organisation to fill their vacant
position as it helps them to make their business operation smoother. The company need to
identify that the skilled and experience level of the new employees did match their organisational
gaols and objective. It will help in increasing their productivity as well as overall performance of
their business. The company also need to provide proper training their new employees in order to
make them effective for their job. Training provide proper knowledge about the job and role in
the organisation that helps them to conduct their job in better manner. The company also need to
communicate their organisational goals and objective clearly with their new employees which
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makes them focused to work effectively in order to achieve it for the company (Mollenkopf,
Ozanne and Stolze, 2020). When the employees perform their job in effective manner then it
automatically improves the overall performance and productivity of the business in better
manner. Hiring of new employees is not only help company to deal with the high rate of
employee turnover, the company need to focus on retaining them so, they do not make decision
to leave the organisation.
CONCLUSION
From the above report it is concluded that high employee turnover negatively affects the
company as well as the employees. High employee is the situation when company is incapable to
retain their employee for longer time period. This turnover in the company largely impact them
in worse manner. Companies whose turnover is high cannot attain their vision and mission in
given time duration which also impact their performance. Some of the problem which
organisation can face due to high employee turnover are low productivity among employee, low
organisational performance, inefficient to attract new talents, low employee motivation, poor
market image and many more.
To overcome from the above problem some of the suggestion which can be provided to the
company to reduce the situation of high employee turnover are as follow:
Recognition and rewarding employee: To reduce the staff turnover rate the strategy which
can be used by the organisation is appreciating the star or top performer. They can recognise the
top performer by the tracking their performance and then rewarding them for their best
performance. The reward which can be provided by the company can be in terms of monetary
and non-monetary.
Developing their career: Another strategy to decrease employee turnover is providing them
the training and development session to build them professional. Company can also provide
direction so that they can see career within the organisation as well.
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REFERENCES
Books and journal
Becker, K. and Bish, A., 2021. A framework for understanding the role of unlearning in
onboarding. Human Resource Management Review, 31(1), p.100730.
Mollenkopf, D.A., Ozanne, L.K. and Stolze, H.J., 2020. A transformative supply chain response
to COVID-19. Journal of Service Management.
Li, Y., Huang, J. and Song, T., 2019. Examining business value of customer relationship
management systems: IT usage and two-stage model perspectives. Information &
Management. 56(3). pp.392-402.
Li, J.J., Bonn, M.A. and Ye, B.H., 2019. Hotel employee's artificial intelligence and robotics
awareness and its impact on turnover intention: The moderating roles of perceived
organizational support and competitive psychological climate. Tourism Management. 73.
pp.172-181.
Skelton, A.R., Nattress, D. and Dwyer, R.J., 2019. Predicting manufacturing employee turnover
intentions. Journal of Economics, Finance and Administrative Science.
Giunipero, L.C., Denslow, D. and Rynarzewska, A.I., 2022. Small business survival and
COVID-19-An exploratory analysis of carriers. Research in Transportation
Economics. 93. p.101087.
Yu, J., Park, J. and Hyun, S.S., 2021. Impacts of the COVID-19 pandemic on employees’ work
stress, well-being, mental health, organizational citizenship behavior, and employee-
customer identification. Journal of Hospitality Marketing & Management. 30(5). pp.529-
548.
Coetzee, M. and van Dyk, J., 2018. Workplace bullying and turnover intention: Exploring work
engagement as a potential mediator. Psychological reports. 121(2). pp.375-392.
Rajamohan, S., Porock, D. and Chang, Y.P., 2019. Understanding the relationship between staff
and job satisfaction, stress, turnover, and staff outcomes in the person‐centered care
nursing home arena. Journal of Nursing Scholarship. 51(5). pp.560-568.
Aguenza, B.B. and Som, A.P.M., 2018. Motivational factors of employee retention and
engagement in organizations. International Journal of Advances in Agriculture Sciences.
Wan, Q., and et. al, 2018. Effects of work environment and job characteristics on the turnover
intention of experienced nurses: The mediating role of work engagement. Journal of
advanced nursing. 74(6). pp.1332-1341.
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