After Effects of a Poor Employee Retention

Employees are the major assets of any organization. An organization can’t survive if the individuals are not focussed and serious about their work. The success and failure of any organization depend on the hard work put by the employees to achieve the targets of the organization. It is a common observation that employees who spend a good amount of time in the organization tend to know more about it and thus contribute effectively. They develop a sense of loyalty towards their workplace and strive hard to live up to the expectations of the management.

There are several reasons as to why an employee decides to move on. Monetary dissatisfaction, a negative environment at the workplace, dirty politics, complicated hierarchies, lack of challenging work, poor supervision being the major ones.

In the current scenario almost all the leading organizations are facing the problem of employee retention. Management somehow fails to stop the high potential employees and thus face the negative consequences. It becomes really difficult for the organization to retain the employees who decide to quit for a better opportunity.

Let us go through some of the after effects of poor employee retention:

  • Every organization invests its time and money in training a new joinee to bring him at par with the existing employees. The organization is at a complete loss when the employees quit all of a sudden. Hiring needs to be done all over again and still there is no surety whether the new joinee would be apt for the profile or not? One wrong person hired and the output of the entire team and eventually the organization goes for a toss.

  • Employees who spend a considerable amount of time in any organization know it in and out and thus can perform better. They are well familiar with the company policies and adjustment is never a problem. Employees who come and go find it very difficult to settle down in a new environment and are thus always in a state of dilemma. They are not able to perform up to their potential and eventually the work and the organization suffers.

  • Individuals who have the habit of changing jobs frequently never get attached to any particular organization. They just treat the organization as a mere source of earning money. They are never serious about their work and fail to accomplish the tasks within the desired time frame. It hardly matters to them whether the organization is performing well or not? In cases of poor retention policies, employees are just not bothered about the reputation of their office and avoid taking initiative to do something new. The employees who are there for a long time in the organization are trustworthy and the management can rely on them anytime.

  • When individuals leave any organization, they are more likely to join the competitors. Sometimes they tend to take confidential data along with them to create an impression in their new organization. This way the plans of the organization get leaked even before implementation and they fail to do anything great. Employees must not share any information with an external party in any manner what so ever.

  • An organization can’t perform well if the employees speak negative about it. It is essential to have a group of loyalists who play an important role in furthering the brand image of the company.

  • Employees working with an organization for a long time never badmouth it and are somewhat emotionally attached to it. People leaving in a short span always speak ill about their previous organizations. The loyalty factor is almost zero and no one is ready to take ownership of work.

The HR department must take the initiative to discuss the several issues disturbing an employee and try to sort it out as soon as possible. An organization must work hard towards retaining those who really are important for the organization.

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The article is Written By “Prachi Juneja” and Reviewed By Management Study Guide Content Team. MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to and the content page url.