How Employee Turnover Crushes Small and Mid-Sized Organizations

Summary:

Employee turnover can be especially costly and disruptive for small and mid-sized organizations. Not only do they lose valuable team members and institutional knowledge, but they also face significant expenses and productivity dips during the hiring process. Dr. Jim emphasizes the importance of effective managers and engaged employees in mitigating turnover and building a successful organization.

Key Takeaways:

• Employee turnover is more expensive and impactful for small and mid-sized organizations due to the loss of institutional knowledge and the scramble to redistribute work.
• The hiring process is costly and time-consuming, representing a significant portion of the budget for smaller organizations.
• Productivity suffers when employees are overworked and morale declines after turnover.
• Relationships within the organization and with clients are also damaged when key employees leave.
• Small and mid-sized organizations must prioritize effective management and employee engagement to reduce turnover and become elite organizations.

Quotes:

"Every time an employee leaves, it's not just the person that you're losing, it's a vital team member that just walks out with a lot of institutional knowledge with them as well." - Dr. Jim

"Each step of the hiring process is expensive, not only in hard dollars, but also in soft dollars and time spent." - Dr. Jim

"The longer you keep people in house and develop them, the faster you'll become an elite organization." - Dr. Jim

Timestamp

[0:00:00] Employee turnover is a big problem for organizations.

[0:00:24] Turnover is more costly for smaller and mid-sized organizations.

[0:02:09] Turnover leads to lost productivity, hiring costs, and damaged relationships.

[0:03:12] Effective managers and engaged employees can mitigate turnover costs.