Turnover: Tasty Treat or Company Cost
Tasty Treat or Company Cost?
In the bakery world a turnover is a small pie with the pastry folded over a sweet filling. In the work world, turnover is not so sweet.
For a small business owner, calculating and managing the rate at which people leave your workplace and are replaced (turnover) is important to business success. Why? When your rate of turnover is high (for the industry),
Money is wasted onboarding, orienting and hiring;
Employee morale is affected by distruptive team changes;
Customer service suffers from lack of knowledge and continuity;
Owner and manager stress levels increase and strategic goals are put on the back burner to deal with immediate problems.
The other side of turnover - if you turn it over - is retention. Retaining employees (happy and productive ones) adds to company success.
So, if you focus on increasing your retention rate your turnover rate will go down. In a positive organizational culture the focus is on developing and retaining instead of minimizing loss.