Introduction
Employee turnover not only
affects the organization by losing its employee, but also has broader
implications for organizational growth and various stakeholders. This article
aims to explore the impacts on the organizational growth, employees and
external parties due to the employee’s turnover.
Impact on Organizational Growth:
Harter et al., 2002 stated that
the High employee turnover can cause impact in the organizational growth by
causing negative impacts to the work flow, productivity and recruitment cost.
Once the employees who gained knowledge and skills for the organization leaves
they leave the company with the experience which they have gained from the
organization, this creates a major gap in the organization and finding another
employees who matches the same energy is also a challenging. This result in the
delay of the project completion and it creates a major negative impact to the
organization to achieve its strategic objectives.
Impact on Other Employees:
Rate of the Employee turnover can
also cause impact to the remaining employees by creating feelings of
uncertainty, insecurity, and demotivation (Ellemers et al., 2004). Frequent
departures of the employees can erode morale and confidence, which affects the
productivity of the remaining workforce and cause conflicts. Additionally, the
loss of skilled employees can increase workload and stress levels for those who
remain, which cause negative impact on employee well-being.
Impact on External Parties:
Employee turnover can have ripple
effects on external parties, including customers, suppliers, and investors. For
example, Cascio, 1991 stated that frequent turnover (increased rate in the
employer turnover) affects the services which is provide by the organization
which creates an impact in the satisfactory and loyalty level of the customers.
Additionally, delay in the product or service delivery may also cause major
impact to the suppliers. This will creates an instability and inefficiency
within the organization, the reflection of this can affect the investor’s
confident and financial performance.
Conclusion:
Employee turnover has major
implications for organizational growth and various stakeholders. By
understanding and finding the root causes of employee turnover, organizations
can mitigate its negative impacts and create a more stable and productive
working environment. Implementing retention strategies; providing opportunities
for professional development, fostering a positive workplace culture, and
offering competitive compensation and benefits, can help organizations to gain
top talent and drive sustainable growth.
References:
Harter, J. K., Schmidt, F. L., & Hayes, T. L. (2002). Business-unit-level relationship between employee satisfaction, employee engagement, and business outcomes: A meta-analysis. Journal of Applied Psychology, 87(2), 268–279.
16 Comments
As per my understanding, Consequence of high employee turn over can be serious issue for quality, profitability, productivity at organizations at all size. Further, voluntary turnover, is typically costly proposition (Heneman and Judge, 2009). In other hand, some stake holder have to badly suffer from the negative consequence's due to this issue. So it is wise to say that, Retention strategies must focus not only on how many
ReplyDeleteemployees are retained but exactly who is retained (Heneman and Judge, 2009)
Agreed with you, The departure of skilled employees not only signifies a loss of knowledge and expertise for the organization but also creates a significant void that is challenging to fill. As noted by Raziq and Maulabakhsh (2015), this departure leads to delays in project completion and hampers the organization's ability to achieve its strategic objectives.
ReplyDeleteThe impacts of employee turnover on organizational growth highlighted in the article are significant and far-reaching. It's crucial for organizations to recognize the implications of losing experienced employees and the challenges in filling their roles, as this can hinder progress towards strategic objectives (Harter et al., 2002).
ReplyDeleteAbsolutely, the loss of skilled employees can disrupt workflow and delay project completion, ultimately affecting the organization's ability to achieve its goals. By addressing turnover issues proactively, organizations can mitigate these negative impacts and foster a more stable and productive work environment (Harter et al., 2002).
DeleteThe article's discussion on the impact of employee turnover on external parties, such as customers, suppliers, and investors, sheds light on the broader implications of turnover beyond the organization itself. Indeed, frequent turnover can disrupt service delivery and create instability that affects stakeholders beyond the organization (Cascio, 1991).
ReplyDeleteAbsolutely, organizations must recognize that turnover can have ripple effects throughout the broader business ecosystem. By prioritizing employee retention and stability, organizations can uphold their commitments to customers, suppliers, and investors, fostering trust and confidence in their operations (Cascio, 1991).
ReplyDeleteAgree. Additionally, frequent turnover can incur substantial recruitment and training costs, diverting resources that could otherwise be allocated toward innovation and expansion (Allen, Bryant, & Vardaman, 2010).
ReplyDeleteAbsolutely, the costs associated with frequent turnover extend beyond just recruitment and training. These expenses not only drain financial resources but also consume valuable time and energy that could be invested in driving innovation and growth initiatives within the organization. By reducing turnover rates, companies can redirect these resources towards more strategic endeavors, thereby fostering a culture of stability and progress.
DeleteThe conclusion of the article emphasizes the importance of understanding and addressing the root causes of employee turnover. By implementing retention strategies and creating a supportive work environment, organizations can mitigate the negative impacts of turnover and drive sustainable growth (Harter et al., 2002).
ReplyDeleteIndeed, proactive measures to address turnover are essential for fostering organizational stability and growth. By investing in retention strategies and prioritizing employee well-being, organizations can create a positive workplace culture that attracts and retains top talent, ultimately driving long-term success (Harter et al., 2002).
DeleteThe article rightly points out the detrimental effects of employee turnover on remaining employees, such as increased workload, stress, and decreased morale. It's essential for organizations to consider the well-being of their workforce and take measures to prevent burnout and maintain a positive work environment (Ellemers et al., 2004).
ReplyDeleteIndeed, the impact of turnover extends beyond the departing employees to affect the overall morale and productivity of the entire workforce. By implementing strategies to support and empower employees, organizations can mitigate the negative consequences of turnover and promote employee well-being (Ellemers et al., 2004).
DeleteThe discussion on the impact of turnover on organizational growth resonates with real-world challenges faced by businesses. Losing experienced employees can indeed hinder progress towards strategic objectives and disrupt workflow, underscoring the importance of addressing turnover issues proactively (Harter et al., 2002).
ReplyDeleteIndeed, the loss of skilled employees can have far-reaching implications for organizational growth and success. By implementing strategies to retain top talent and foster a positive work environment, organizations can mitigate the negative impacts of turnover and drive sustainable growth (Harter et al., 2002).
Deletehe article effectively highlights the ripple effects of employee turnover on external parties, including customers, suppliers, and investors. It's crucial for organizations to recognize that turnover not only impacts internal operations but also has broader implications for stakeholders outside the organization (Cascio, 1991).
ReplyDeleteAbsolutely, the consequences of turnover extend beyond the organization itself to affect its relationships with external parties. By prioritizing employee retention and stability, organizations can uphold their commitments to stakeholders and maintain trust and confidence in their operations (Cascio, 1991).
Delete