Turnover - Part 1 of 2

Out with the old, in with the new?

Turnover is a huge problem for NPOs. For some, turnover has become so commonplace that it is considered normal. Some turnover is good for an organization. A change in staff can mean an addition of new ideas, talents and experiences. However, when an organization has a continuously changing pool of talent, the organization gets hurt – sometimes in ways we don’t always consider.

Productivity

I want you to think of how a train starts. The whistle blows, the engine fires, the wheels start to turn, and the train begins to crawl along the tracks. As more power is generated, the wheels turn faster and faster until, finally, the train reaches cruising speed. If the train were able to continue at this speed, it would reach its destination in no time! That is the ideal scenario, but that isn’t how train travel works. Trains change pace throughout the journey. Maintaining a consistent speed isn’t possible. Passenger trains must stop when people exit and can only restart once new passengers are seated. And remember that the train doesn’t start back at full speed. It must build momentum again before cruising at top speed. Now, imagine if each time the train got to full speed, it stopped. What if the train never got to full speed because it stopped all of the time? It would take forever to get to its destination. Sound familiar? If you have ever experienced turnover, it should. Starting and stopping is exactly what happens at organizations when turnover runs rampant. An organization can’t run at full speed and reach its goals if it always stops to let people exit.

Cost

Turnover doesn’t just impact productivity. It also costs the organization money (and time, which equals money). In addition to the easily identifiable costs associated with turnover, you need to consider what else is lost when an employee departs: time, knowledge and opportunity. What does this cost the organization? These are just three of many hidden costs associated with turnover that we don’t always consider – think about how much your organization may be losing.

Morale & Company Culture

Turnover is hard on employees. The repeated loss of coworkers can be difficult for employees in a number of ways. First, employees must pick up the slack. A constant change in workload can be taxing, both physically and mentally. This, among other things, can lead to employees feeling burnt out. Secondly, the departure of a colleague means the loss of a friend, mentor, or confidant. This, too, can be emotionally exhausting for employees. Lastly, when employees witness rampant turnover, they start to question why. What is wrong with the organization that makes people leave? Are there better opportunities elsewhere? Employees see the organization not being valued by others and begin to question its value as well.

The Big Picture:

Turnover isn’t just about what goes on at the office. How does an organization with a turnover problem look to the outside world? It looks unstable. An organization that is constantly changing leadership or can’t hold on to staff doesn’t instill confidence in its stakeholders, board members, constituents, or prospective donors.