Financial impact of voluntary turnover on small businesses a focus on management of human capital and organizational culture
Talented employees are leaving small businesses in the search for more lucrative opportunities where their talent is acknowledged, valued and able to grow. Dealing with voluntary talent turnover decreases profitability and becomes a roadblock for achieving strategic goals. Businesses incur additional costs to find and replace talent to maintain continuity. However, the time and money spent replacing talent does not guarantee turnover will vanish. What were the stimuli that caused disengagement? Were they strategically managed? Did employees leave because the initial stimuli were not addressed? These are all questions that can lead to decisive actions focused on reducing talent departure.
The goal of a small business should be to find a balance where employee values are met and human capital levers are strategically managed; consequently adding value to small businesses by reducing unnecessary costs due to turnover.