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POPin Blog

The Price of Turnover

We here at POPin know the value of a stable and energized team – we love ours! POPin has grown so much since our inception in 2013, and we have our incredible employees to thank. They work tirelessly to drive us ahead and consistently improve; we know that their feedback is critical to staying ahead in this age of innovation at lightning speed. We can only hope the same for other organizations, but many let high turnover rates create huge obstacles, whether or not they are expected. Here are just four of the resources that turnover depletes from even the richest companies:
  • It takes a ton of time for new employees to get acquainted (more than 90 days, statistically), and even more for new managers. That is time that new employees, instead of contributing their best work, are still getting up to speed with the ins-and-outs of their new workplace. Their coworkers and managers become swamped taking on tasks from their former colleagues, and thus will perform slower and more poorly. Before you know it, the whole team will be progressing at a much slower pace than before. Meanwhile, your organization is still paying the same salaries and expenses, drastically decreasing your profits. And we all know that “time is money.”
  • Money – lots of it. In addition to severance pay, replacing just a minimum wage employee can cost upwards of $3,500! That’s money that could be put to good use elsewhere – advertising, client dinners, office renovation, taxes, and even Christmas bonuses. By losing capital, your organization will lose its traction, leading to instability and immobility.
  • New ideas are coming – fast – and your team needs to keep up with the pace. But let’s face it, people need to get comfortable with each other before they can really get some critical thinking and brainstorming done. For new employees, shedding the fear of embarrassment in front of their new team takes time, as does cultivating an environment supportive of developing ground-breaking ideas. If you’re facing high turnover rates, you’re allowing companies with a solid team to wiz by.
  • A bad rep. Word always gets out, and with the world-wide web, it can get out farther more quickly. Unsatisfied former employees can warn others, either in their own network or through sites like Glassdoor. The best professionals are in demand and know that they have lots of choices. They won’t want to take the risk of interviewing at an unfamiliar organization with bad reviews.
Your company should turn heads, not employees. You’ve accomplished so much, but you’re only getting started. A solid team is key to taking your organization to the next level, but this can only happen when team members feel valued and supported. POPin is designed on the simple concept that corporate communication is critical to maintaining and gaining success. With POPin, your company empowers employees to contribute feedback and ideas in an easy-to-use mobile platform. By engaging your team in a constant dialogue, you can avoid turnover and its costs.