High Staff Turnover – How It Affects You & Your Business

It’s important that diversity is welcomed and embraced in the workplace: diversity of gender, race, age, background, among other things. What people sometimes forget, however, is diversity of workplace experience and staff longevity within a company.  High staff turnover refers to the number of staff being employed within a company and the length of time they stay employed there. A company with high staff turnover employs many people, while also dismissing a large number. While this approach can have its benefits, it can also affect the company in negative ways.



There are numerous negative effects that high staff turnover can have on a company. The constant hiring and firing procedure can lead to a workplace being populated by a high percentage of novices and newcomers. When highly skilled or long term employees leave, they take their knowledge (and customers) with them, resulting in a loss of business and loss of knowledge. If knowledgeable long term staff leave before new staff are fully trained, you have suddenly lost knowledge, time and money and in return have a business full of half-trained inexperienced staff.

Another way businesses are affected by high staff turnover is the stress on existing employees. It’s important that new employees learn from the best and who better to train new staff than your top performers? But the cost can be damaging. Once your top performers are taken out of circulation and being side-tracked, the company can fall behind in numerous ways. Productivity, customer satisfaction and employee morale all suffer when a team is short of staff.

There can also be decrease in workplace morale. Overworked employees can get frustrated due to short staff/staffing issues. This can result in a decrease in productivity or sub-par quality of work due to stressed employees doing various roles they aren’t qualified for or alternatively,  inexperienced new employees without complete training.



  • Training facilities wasted by staff not lasting the probation period
  • Financial loss on job advertising, time taken out to interview, induction process etc
  • Financial loss on severance pay
  • Existing employees start doubting their jobs – is the grass greener on the other side?



If high staff turnover is something that hits close to home for you, as an employer, then you’re undoubtedly looking for a way to change this. Aside from hiring the right people the first time and for the right reasons, there are ways to you can cut down on the hiring and firing on your team.

Perhaps the most effective way to ensure your staff stay in the company is to “repair, not replace” them. If your staff are under-performing, there might be a reason why. Take the time to find out why and support them through it – you don’t always know what’s going on behind closed doors.

Another way to lower the staff turnover is to offer flexibility. If money is a factor that is making people leave, try and offer something else that could make them stay. Things could include flexible hours, free parking, remote work privileges, onsite fitness facilities/day care, discounts on services or travel and employee assistance programs. That way you can keep your employees satisfied without blowing your budget.

Finally, you can prioritise employee happiness and make sure your staff feel valued, a seemingly an easy task that is often overlooked by employers. By ensuring your staff are happy, you raise the workplace morale and make the environment a better place for them to be. Your staff will want to be there, want to do the right thing by you and therefore produce better results. Once they feel valued, they are more likely to perform to their best ability and stay with the company that values them.

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