Turnover rates have been on the rise since the beginning of the pandemic, but it’s not just staff headcount that is being impacted.
Now, current employees at companies with high turnover are experiencing their own setbacks, mainly with productivity levels.
For instance, when robotics company W.H. Bagshaw saw a 30% turnover rate last year, new hires were quick to find, but expensive and time-consuming to train. As a result, production decelerated, normally punctual deliveries were late and customers began to notice.
“All that turnover, all that hiring, all that training you have to do — that takes away from your day job,” said Sarah House, an economist at Wells Fargo. “So it’s essentially less output at the end of the day.”
Experts worry that lagging productivity at companies like W.H. Bagshaw will bleed into the economy, which is already on the brink of a recession.
Historically, some turnover has been seen as healthy for the economy according to economists, as it shows that professionals are right-sizing their careers and finding jobs that are best suited for their skills.
However, when turnover continues to churn at its current pace, companies face a whole new slew of problems. In these scenarios, remaining workers are left to pick up the slack, thus leading to decreased motivation, productivity and eventually, burnout.
Although turnover has seen a slight dip from its record-high in 2021, experts believe that their levels will continue to be unprecedented. While the decline allows some companies to play catch-up, white-collar jobs that lean into remote work are likely to see employees coming and going at a higher rate.