Employee Turnover Affecting Organization’s Overall Performance

Employee turnover affecting Organization’s overall performance

One of the biggest challenges that a BPO company face is the excessive turnover that creates an unstable workforce and extra overhead cost.  In a Business Process Outsourcing industry, the term turnover seems to be normal, expected and unavoidable.  I am working in a BPO industry, as part of the middle management, the toughest concern that we have now is the high attrition rate.  This is the reason why I'd like to conduct a research on its impact in organizational performance and proposed a workable solution to reduce employee turnover.

Staff turnover requires a special attention, it is one of the factors which affects the organization’s productivity; and it is also considered to be one of the challenging issues in business nowadays not only for BPO sector.

I'd like to quote the former chairman and CEO of General Electric company, Jack Welch, who said, “There are three measurements that tell you nearly everything you need to know about organization’s overall performance: employee engagement, customer satisfaction, and cash flow."  As Mr. Welch stated, no company will succeed without employees who are committed in the mission and understand how to achieve its targets.

If an organization has a high turnover rate, it is a warning sign that employees are mostly dissatisfied and disengaged with the company.  Based on studies, employees either leave their jobs voluntarily – they render resignation, or forced to leave – end of contract, terminated because of low performance.  When an employee leaves an organization, the remaining staff will have to deal with things like, problems with productivity, loss of legacy skills or knowledge, redistribution of workloads and low morale.

The effect of it to a company is substantial; this goes a long way to affect the productivity, growth and increases the company’s cost of recruiting new employees, training, developing the new staff to occupy vacancies and not to mention the time required for a new staff to be productive. Attrition has proven to be one of the most costly human resource and executive management challenges.  So it is very critical for every organization’s financial as well as overall status to manage turnover effectively.