Employee turnover in organizations is usually considered as a
negative thing that impacts the productivity of the firm. But this
process, just like any other instance, has got both advantages and
disadvantages. Both bad and good impacts of employee turnover are
as follows:
Disadvantages of employee turnover:
- The overall performance and the productivity of the
organization can be affected by employee attrition. The risk is
increased when the employee leaves the organization suddenly.
- More time is required for providing training to the new
employees, which is a time consuming and costly task.
- Task management sometimes becomes negative with the reduced
number of staff. This can make it difficult for the current team to
manage things efficiently.
- Excess cost is incurred under the name of attrition cost and
recruitment cost, which is apart from the regular recruitment
process.
- When employees who have stayed for a longer period and are one
among the best performers in the organization leaves, the firm
experiences a lack of knowledgeable employees.
- An organization with higher attrition rates is supposed to gain
a bad brand reputation in the industry. It will be assumed as a
firm with a not so good environment to work.
Advantages of employee turnover:
- The employee who stays in for the longest can be considered as
employees with a sense of belongingness and commitment. Hence such
employees can be identified and rewarded nominally for their
loyalty.
- It is better that those employees who might bring in a negative
impact on the company and those who are against the work culture
leave the organization. This helps the organization to stick on to
its values and culture, which is an advantage of employee
turnover.
- When there isn’t enough number of employees to attend to a
task, the chances of thinking about new and innovative ideas are
more. This can open the gates to a breakthrough change in the
organization and implementation of new technologies.’
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