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The Cost of High Churn

August 18, 2022

A small leak can sink a giant ship. The same concept can apply to a company that loses a number of employees. A company will lose several talents and skills, forcing a restart of the business operation.

A high turnover means a position is frequently vacant. If several positions have high turnover, it is detrimental to the company’s reputation because it can suggest a problem with employee engagement or the leadership team.

A churn of employees costs a tremendous amount of money.

According to Workstars companies will spend an estimated $40,000 to entirely replace an employee, including advertising, recruitment fees, training time needed to get new personnel to full working capacity, and skipped productivity. If you think about the cost of turnover, it’s about 6-9 months to replace them.

Example: If an employee is making $70,000 a year, that’s $35,000 to $50,000 to replace them if we consider all of the costs involved with replacing someone. All aspects of recruiting and training expenses.

The great resignation has shed a lot of light on what it means to balance employee engagement. People have taken the last 24+ months to analyze their work-life balance and decide on what is truly important to them. It is crucial to act on the ground and uncover the triggers of high turnover.

Toxicity in the Workplace

Employees don’t quit their jobs or a company; they leave toxic environments, poor management, and a non-proactive workplace. They want to feel valued.

Tribe-vibe, micromanagement, belittling, and criticizing are all examples of toxic behaviors that lead to toxic environments. These negative actions create a hostile work atmosphere, undermining team morale and productivity. In the absence of proactive leadership intervention, these toxic behaviors can become ingrained, perpetuating a culture of toxicity within the organization. As a result, the toxic environment slowly erodes motivation, causing individuals to view their work as a burdensome ordeal rather than a source of fulfillment.

Nothing is more frustrating than working at a company that you like but seem to get lost in internal toxicity, deflection, and egos. It creates an unnecessary high-stress environment that will ultimately be riddled with errors, work that is less than par, and, yes, high turnover. The constant struggle with navigating office politics, managing conflicting personalities, and dealing with a lack of transparency can drain one’s enthusiasm and hinder productivity. Finding a balance between individual growth and organizational success becomes a delicate dance in such a challenging workplace setting.

Major indicators to look for. There are four common symptoms of a high turnover. Unfortunately, these have remained under the radar for a long time, and they have been infecting the company’s ecosystem by being wrongfully perceived as a normal part of the business operation.

The first symptom is that the work environment becomes more and more toxic. The second one is when employees stop challenging themselves to improve, as they feel their efforts are not recognized or valued. The third sign of high turnover is when communication from management to employees starts to falter, leading to a lack of transparency and trust. Finally, excessive absenteeism and employee burnout can indicate a high turnover rate. These indicators should be taken seriously and addressed proactively to prevent further damage to the company’s culture and success.

  1. Inadequate Technology: When an employee takes four times longer to complete a basic task due to a lack of proper materials, it becomes unrealistic to expect them to work faster or without errors. Resorting to manual workarounds only heightens the risk of human mistakes. What’s even more challenging is that simple tasks suddenly become arduous to accomplish. A leadership team that neglects outdated technology will eventually encounter the need to replace employees, leading to detrimental consequences for the organization. After all, who would willingly remain in a workplace where their workload triples due to inadequate tools and resources?
  2. Cumbersome Process: Inefficiency in processes often leads to frustration among employees. A common scenario illustrating this is when an employee is required to seek approval from multiple individuals across various departments of the organization. While the intention behind this procedure may be to thoroughly verify necessary details, it raises the question of whether all those approvals are truly essential. Employees can feel demotivated when they are tasked with following procedures that seem illogical to them. The cumbersome nature of such processes not only results in delays but also signifies a missed opportunity for productive work. Simplifying or redesigning these processes could significantly reduce the time lost in waiting, allowing for more efficient task completion and a smoother workflow.
  3. Behavior Amongst Employees: An employee replicates their actions based on evident behavior in his working environment. When employees are undervalued, they show a decline in interest and effort. It’s a domino effect; the vibe they feel in the workplace is directly proportional to how they perform their respective roles. Not everything is about money. Employees are frequently seeking a supportive environment where they do not have to engage in conflicts with inconsiderate superiors. This kind of space allows them to focus on their work and contribute effectively to the team without unnecessary stress or tension.
  4. Unsatisfied Customers: Customers expect a seamless service, but when their expectations aren’t met, employees will have to act as the last point of contact for that person and absorb the stress and heat of emotions coming from a dissatisfied client. Employees will need to focus on effectively managing customers’ emotions when they are dissatisfied with the service provided. This scenario can be particularly demanding, especially when staff members encounter such situations regularly. It is crucial to acknowledge that appropriate tools can enhance productivity beyond what humans can achieve alone. These tools not only facilitate tasks but also empower employees to execute their responsibilities with unparalleled efficiency, ultimately leading to improved customer experiences.

Company leaders need to prioritize observing the dynamics within the current work environment. Addressing high turnover rates requires a strategic approach rather than a temporary solution. Therefore, upon recognizing the symptoms of high turnover, it is advisable to seek assistance from experienced professionals in the field to develop effective strategies for improvement. Additionally, continuously monitoring and updating processes and technologies can help prevent toxic behaviors from taking root in the organizational culture.

Creating a Positive Work Environment

Toxicity in the workplace is avoidable when leaders prioritize creating a positive work environment. This includes fostering open communication, promoting a culture of mutual respect and appreciation, and ensuring that employees have the necessary tools and resources to perform their jobs effectively. Leaders should also actively listen to their employees’ concerns and address any issues promptly.

It’s crucial to highlight that fostering positive change in the workplace is an ongoing endeavor that requires dedication. Leaders play a pivotal role in this process by consistently monitoring and evaluating the company culture to ensure a supportive and thriving work environment for all employees. By prioritizing regular assessments and actively promoting a culture of growth and inclusivity, organizations can cultivate a positive workplace where employees feel valued and motivated to excel.


In conclusion, high turnover rates can be indicative of underlying toxic behaviors within an organization. It is crucial for company leaders to address these issues through strategic solutions and by creating a positive work environment. By prioritizing employee satisfaction, organizations can benefit from increased productivity, lower turnover rates, and a more positive company culture overall. Ultimately, investing in a healthy work environment is an investment in the success of the organization as a whole.

So if you’re experiencing high turnover rates within your company, don’t ignore the symptoms – take action and work towards creating a positive work environment for your employees. It will not only benefit them but also contribute to the success of your organization in the long run. Remember that happy and satisfied employees are key to a successful business.

Also, consistently evaluating and updating processes and technology is crucial to prevent toxic behaviors from establishing themselves in the organizational culture. By placing emphasis on employee satisfaction and fostering a welcoming work environment, organizations can experience a boost in productivity, reduced turnover rates, and an overall improvement in company culture. This approach not only enhances employee morale but also contributes to long-term success and sustainable growth for the organization.

It is crucial to consistently monitor and evaluate your company’s dynamics to maintain a healthy work environment for all employees. If you are facing high turnover rates in your organization, consider seeking guidance from seasoned professionals and focus on implementing effective improvement strategies. Investing in a positive work atmosphere is ultimately an investment in the overall success of your organization.

Remember, nurturing high-quality content creation and ensuring employees feel valued and supported are crucial elements for a flourishing business. By prioritizing their well-being, providing growth opportunities, and fostering a positive work environment, you can witness your company not just succeed, but truly thrive in today’s competitive landscape.

Still have questions? Connect with one of our consultants today for a no-obligation consultation.