Solution

Dysfunctional turnover

Dysfunctional turnover occurs when skilled, experienced and top performers leave the workplace. When top talents leave, BMG will experience both direct and indirect costs of turnover.

Direct costs

Recruitment costs – When top performers leaves, BMG will need to replace them. This will incur recruitment expenses such as paying for agencies, paid ads and cost of preparing content of recruitment (Abbasi et al., 2022).

Training costs – Newly hired employees need training to understand their job requirements, roles and responsibilities (Kim and Ra, 2022). These costs include facilities fees, cost of materials for training and cost of paying trainers.

Indirect costs

Loss of productivity – When skilled employees leave, BMG’s teams will experience productivity decline. Research show that top performers are 400% more productive than weaker employees (Cosentino, 2022). The decline in productivity may be due to delays in project timeline, higher workload and lower team morale.

Loss of knowledge – Higher performers leave with their skills, experience and knowledge to another organisation (Phaladi, 2021). This can affect company’s ability to innovate and to achieve its goals and objectives.

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