The Costs of Turnover

High turnover is like having a tapeworm.  No matter how many new people the organization hires, they never grow. Here are a few of the less obvious costs:

Training costs
Think about the amount of attention a new person needs. New associates are a drain on the manager’s most scarce resource, time. And think about the value an experienced top performer brings to your team. They can teach others their best practices, efficiencies, and ways to avoid pitfalls. New people charge managers time, experienced top performers give managers more time.

Knowledge costs
People take their knowledge with them when the leave the organization. If your team lost twenty people this year, with an average tenure of five years, you lost a century of knowledge. Tribal knowledge is irreplaceable.

Customer costs
New associates initially struggle delivering the customer experience.  You may lose customers during the learning curve period.  Also, experienced top performers have loyal customers.  People buy from people.  Your top performers may take their book of business with them!

My previous post discusses free ways to boost associate morale.  The stakes are high – turnover is expensive!

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