Is It Financially Irresponsible To Have High Employee Turnover?

I think it's funny when companies hire multiple people at once in hopes that a few of them will stick around for the long haul. This is a terrible business practice that has been going on for years in various industries. The problem,  if you hire multiple people at once and spend money to train all of them without really digging into who they are, you are wasting your companies money, especially if your turn over rate is higher than average. You also risk the employment of those who have been around for a while ie... unsatisfied due to limited sales, decrease in pay if your commissioned based, or the veteran who is waiting for their raise that sees money being wasted.

It is financially irresponsible to have a continuously high turnover rate. Think about it, if you are using additional resources and time to train people who are not fit for the position then leave after a month or two, wouldn't that be a waste of money? Companies who need to fill one or two positions hire ten people to fill only those positions, why? The thought, you do not know what you are getting when you hire someone, so the law of averages come into play. I firmly do not believe that this is the best practice. You have to take the time and energy to figure out who fits the part and the team, then train them to the best of your ability. Hiring a rash of people and giving them mediocre training can also cause a high turnover rate.

When you hire someone make sure you are giving them all the tools to do the job. In a world were hands on training is minimal, you can expect a minimal out come. Instead of using videos to explain something, take the time and do it yourself. We need to invest every resource we have into the people we hire and try not to leverage the law of averages. Think about all the money a company looses by the mass hire and fire routine. Invest in your company by investing in your employees.

The question that needs to be asked when a company has a high turnover rate, how does this affect the customer experience? Customers expect a professional and knowledgeable staff. If your company is constantly training and hiring new employees, where does the knowledge and professionalism come into play? It doesn't, it causes distrust among your prospective clients, it could also cause a bad or not so great experience. Your company needs a strong core to operate efficiently and effectively.

If you expect to grow your numbers and profitability, it is counter productive to higher a mass of people expecting to get the desired results, especially when the training is minimal. Instead focus on growing the people you have. If your operation grows and you need more employees, the focus turns to hiring the right person and giving them everything you have to make them successful. This will create a happier work space, a happier new hire, and decreased turnover. Your employees are only as good as the people hiring and training them.