It’s a widely known fact that high employee turnover costs companies a lot of money. First, and most expensive, is the cost of the employee’s contribution to his function in the whole process of the organization. From production line employees to high level executives, employees that have been in their job have developed skills and their own effective processes to do their jobs efficiently. If they leave their job then their function automatically becomes more expensive.

Why? Because their function still has to be performed by someone and that someone will not do it has cost effective has the person who left. They might not be has knowledgeable, they might be a little slower in production, they might not be as good with customers and in addition they still have their job to do.

Then you have the secondary cost of turnover. Now the employee has to be replaced. So Human Resources gets involved and spends time and money for a new employee. Then the new employee has to be trained and there is also a learning curve with new employees. So for each employee who leaves you can expect 2 to 4 months at least of low efficiency and higher costs.


Another very serious issue is the damaging costs that can occur in the sales and business development area. What if a high producing Sales executive leaves their position and takes some highly profitable customers with him? While this is unethical it happens very often. With many customers it may not be the company they are loyal to or feel like they’re buying from but the sales employee.

So how do you keep your best performing employees and keep your employee turnover low? One of the biggest factors is how to motivate employees and keep morale high. Let’s face it, the main reason people work is to earn money. But they also have to be happy and satisfied with their position, supervisor, fellow employees and the president/owner of the company.

What are some of the causes of low morale and no motivation?

Demeaning Communication From Supervisors
Extreme Salary Disparity
Lack of Continuing Education
No Advancement Potential

These are just a few of the causes of low morale and employee turnover. To address these issues and get employees motivated and boost morale, management must put into place programs that give the best results for these issues. Motivation training for managers is also a key ingredient in the process. You can’t motivate employees if your not motivated.

Motivating employees in today’s business climate is critical to a company’s success. Great tips, techniques, articles and programs for managers and HR personnel to motivate employees, keep turnover low and help your company be successful. Visit us at <A rel=”nofollow” onclick=”javascript:_gaq.push([‘_trackPageview’, ‘/outgoing/article_exit_link/5144691’]);” href=””>How To Motivate Employees</a> for more great articles, programs and training.
Everett Fournier is a employee relations practioner and publishes the blog “How To Motivate Employees
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