Relationship Between Excessive Employee Turn-Over and Performance of the Company

There are many small scale companies in the world who conduct their business opetations by a small number of employees. Job rotation seems to be very high and normal in those companies, therefore every employee knows or gets opportunity to know every single operation, business processes of the companies.

But excessive job rotation in a given period may hamper the quality of the services offered by the companies. It might create depression among employees and drive them towards switching their jobs. Thus, creates employee turn-over rate high. Again, high employee turn-over sometimes shows negative impacts on the company image . People feel lower job security there due to frequent change in their responsibilities.

Excessive employee turn-over in a company is closely related to the overall performance of the company. It almost shows inverse relationship with performance of the of the company. That means, if the turn-over is low, performance will be high and vice-versa. Arguments in favor of this is: when an old employee drops out, a new employee comes in; but he cannot instantly understand all the processes related to the responsibilities of the old employee. So, the services become delayed which ultimately degrade the performance of the services. Think about the collective impact if 10 such employees leave and 10 new employees come in their positions.

In this regard, there might be different views and arguments by different people but practically it is true that less the employee turn-over, more the performance of the company. More turn over often deteriorates the quality of the services provided by the company. It also reduces employee morale and barrens motivation, increases grivance and depression.

Therefore, we advise to reduce excessive employee turn-over and increase the performance of the company.

Show More

Related Articles