What Does The Higher Employee Turnover Mean?

Higher Employee Turnover

Employee turnover can be a major challenge for any organization, particularly when it is higher than desired. The constant departure of employees can lead to reduced productivity, increased costs, and a loss of institutional knowledge. In this blog post, we will explore the causes and consequences of higher employee turnover and discuss strategies that organizations can use to reduce turnover and retain their valuable employees.

What Is High Employee Turnover?

High employee turnover refers to the rate at which employees leave an organization over a specific period of time. It is typically a percentage of the total workforce or the number of employees who leave during a given period, such as a month or a year. While there is no universally accepted definition of what constitutes high turnover, it is generally a turnover rate that is higher than the industry average or higher than the organization’s historical turnover rate.

What Causes The Higher Employee Turnover?

What Causes The Higher Employee Turnover

There can be many causes of higher employee turnover, some of which are:

  • Poor management: Employees who feel they are not being managed effectively or are not receiving the support they need are more likely to leave an organization.
  • Lack of growth opportunities: Employees who feel there are no opportunities for career growth or skill development within an organization may seek opportunities elsewhere.
  • Uncompetitive pay and benefits: Employees who feel they are not being compensated fairly for their work or who lack access to important benefits such as healthcare or retirement plans may seek employment elsewhere.
  • Poor company culture: A negative work environment, lack of employee engagement, and an absence of shared values and purpose can contribute to high employee turnover.
  • Inadequate training and support: Employees who feel they are not adequately trained or supported in their roles may feel overwhelmed or underprepared, leading to job dissatisfaction and ultimately, turnover.
  • Limited work-life balance: Employees who are unable to balance their work and personal lives due to long hours, inflexible schedules, or a lack of work-life balance policies may seek employment elsewhere.
  • Commute and location: Employees who have to travel long distances or who work in undesirable locations may seek work closer to home or in more desirable locations.
  • Career transitions: Employees may leave an organization due to a desire to change careers, relocate, or pursue other personal or professional goals.

These are some of the common causes of higher employee turnover. It’s important for employers to identify the specific causes of turnover within their organization and take steps to address them in order to retain valuable employees.

How Does A High Employee Turnover Rate Affect Your Business?

A high employee turnover rate can have several negative impacts on a business. Here are some of the ways in which a high employee turnover rate can affect your business:

  • Increased recruitment costs: High employee turnover means that businesses have to spend more time and money on recruitment efforts, such as job postings, screening, and interviewing candidates.
  • Decreased productivity: When employees leave an organization, it takes time to replace them and train new hires. This can lead to decreased productivity as existing employees take on additional responsibilities and new hires get up to speed.
  • Reduced institutional knowledge: When employees leave, they take with them their knowledge and experience, which can be difficult to replace. This loss of institutional knowledge can affect the quality of work and customer service.
  • Reduced employee morale: High employee turnover can create a sense of instability and uncertainty among remaining employees, leading to decreased morale and job satisfaction.
  • Decreased customer satisfaction: When turnover leads to a reduction in institutional knowledge, it can also impact the quality of customer service, leading to decreased customer satisfaction and potential loss of business.
  • Negative impact on company culture: High employee turnover can create a negative perception of the organization among remaining employees and potential hires, making it difficult to attract and retain top talent.

Overall, high employee turnover can have significant negative impacts on a business, including increased costs, decreased productivity and morale, and a negative impact on company culture. Therefore, it’s important for businesses to take steps to reduce employee turnover and retain their valuable employees.

How To Reduce A High Employee Turnover?

Reduce A High Employee Turnover

Reducing high employee turnover requires a strategic and proactive approach. Here are some steps that organizations can take to reduce employee turnover:

  • Improve employee engagement: Engaged employees are more likely to stay with an organization. Employers can improve employee engagement by offering opportunities for professional growth, recognition programs, and encouraging open communication and feedback.
  • Competitive compensation and benefits: Employers should ensure that they offer competitive compensation and benefits packages to attract and retain top talent. This includes fair salaries, healthcare benefits, retirement plans, and other perks such as flexible schedules and remote work options.
  • Create a positive work culture: Employers should focus on creating a positive work environment by fostering a sense of community, encouraging teamwork, and promoting work-life balance.
  • Provide opportunities for skill development: Employers should offer training and development opportunities to help employees grow and advance in their careers within the organization.
  • Improve management practices: Employers should invest in management training to improve communication and leadership skills among managers and ensure that employees are being managed effectively.
  • Offer employee benefits and perks: Employers can offer additional benefits and perks to improve employee satisfaction and retention, such as wellness programs, gym memberships, or discounts on products and services.
  • Conduct exit interviews: Employers should conduct exit interviews to understand why employees are leaving and identify areas for improvement.

By taking these steps, employers can create a more positive and engaging work environment, retain their valuable employees, and reduce high employee turnover.


In conclusion, high employee turnover can have a significant negative impact on a business, including increased recruitment costs, decreased productivity, reduced institutional knowledge, decreased employee morale, reduced customer satisfaction, and a negative impact on company culture. By reducing high employee turnover, businesses can retain their valuable employees, improve productivity, and create a positive work environment that fosters success and growth.

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