Solution

What is Dysfunctional Turnover?

Dysfunctional turnover is when you lose high performing, skilled or hard to replace people that may have negative effects on the organization (TerryBerry 2022). Functional turnover which sees underperforming or surplus staff exit whereas dysfunctional turnover creates operational problems and affects productivity.

Ways dysfunctional turnover can impact:

Increased Direct and Indirect Costs:

When ImportantParcel skilled employees leave, it suffers from visible and as well as hidden costs. Direct costs are recruitment, onboarding and training replacement staff (Bengfort, 2024). Additionally, this might be agency fees or overtime pay for a warehouse role to fill gaps. Some of the indirect costs are reduced productivity while new hire adjust, time managers spend hiring and retraining. They put a drain on the business over time as these cumulative expenses add up.

Operational Disruption and Decline in Service Quality:

The staff experience is based on role specific knowledge and knowledge of the internal process which is key for their performance as CIPD (2022a) points out. The loss of them can subsequently cause short term disruption, errors and delays in high pressure environment such as parcel delivery. This however not only internal heat efficiency but customer satisfaction also which consequently leads to reputational damage and consequently loss of business to the competitors. The inconsistent delivery service destroys the trust put in ImportantParcel by the customers.

Psychological and Cultural Impact on Remaining Employees: CIPD (2025b) highlights that high turnover can generate feelings of instability and lead to low motivation amongst remaining staff. For them,…

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