What commonly results from high employee turnover?

High employee turnover typically leads to higher costs associated with hiring and training new employees. When employees leave an organization, it creates a gap that needs to be filled promptly to maintain productivity and ensure that operations run smoothly. The hiring process often involves significant expenses, such as advertising job openings, conducting interviews, and performing background checks. Once a new employee is hired, additional costs are incurred for training them to perform their role effectively.

Moreover, the time investment needed to train new employees can divert resources away from existing team members and management, leading to further indirect costs. This cycle of high turnover and the subsequent need to recruit and train new employees can strain an organization's budget and impact overall operational efficiency. Therefore, the link between high employee turnover and increased hiring and training costs is a well-established phenomenon in workforce management.