The Cost Of High Turnover

The Cost Of High Turnover

In recent years, turnover has increased in the hotel and hospitality industries. Employees often leave due to boredom, repetitive tasks, and feeling overworked. Let’s consider the costs and intangibles associated with turnover, and take a look at some hospital and hotel warehouse management tips for boosting retention and employee performance.

Employee Turnover: Direct and Indirect Costs Add Up

Replacing any worker requires a significant investment — interviewing, on-boarding, training, and a great deal of lost productivity. Consider how your company loses time and money replacing an employee:

  • Picking up the slack: Productivity suffers as tasks go undone, coworkers struggle to fill in the gaps, and the new hire begins a learning curve.
  • Training: In addition to formal training sessions, new employees will require hours of precious time from management and coworkers. Someone will need to walk the new hire around campus and stop to answer their questions for weeks or months.
  • Continuity: The old employee may have been performing important but undocumented tasks, so you may notice a drop-off in team performance as everyone scrambles to move forward without them.
  • Workplace culture: Turnover can breed a domino effect. Other employees may grow unhappy with changes and increased workloads. Ultimately, turnover lowers morale and makes it difficult to maintain consistent performance.

Hotels and hospitals can minimize turnover by empowering workers. Communicate and engage, offer routes to raises and promotions, and prevent employees from wearing out due to repetitive tasks. Our Hospitality Cart Puller helps reduce the physical strain on workers — and that leads to greater job satisfaction.

Follow our blog at DJ Products, Inc. for more hospitality and hotel warehouse management tips.