The Impact of Employee Turnover in Telecommunication Industry

 

The telecommunications industry, which is defined by its rapid advancement of technology, demanding nature, and intense competition is facing a significant challenge in retaining its top talent and maintaining a healthy organizational workforce. The implications of employee turnover is far-reaching than the human cost.  

·     Financial Impact:

  • Recruiting and Onboarding Costs: 
Replacing employees is expensive as it involves different types of costs such as advertising, hiring recruitment agencies, background checks, and the onboarding process.
  • Training costs: 
Newly recruited employees require training and development to thrive to become productive whilst adapting to the face-paced Telecommunication industry.
  • Loss of Productivity: 
New hires take time to meet their full productivity and efficiency levels, which impact the overall organizational efficiency.
  • Reduce Customer Satisfaction: 
Frequent staff turnover may cause inconsistencies in service quality, increase in customer dissatisfaction.
  • Knowledge Loss: 
the loss of experienced employees who possess knowledge about the organizational processes, customers, and industry trends may cause the loss of critical information.

·         Impact on Employee Morale, Productivity and Culture: 

High employee turnover may create a sense of instability among the existing workforce, affecting their morale and productivity. Further, the increased workload can also cause burnout and job dissatisfaction amongst the existing workforces. Furthermore, employee turnover may cause hostile and negative work environment. 

·         Operational Challenges:

Higher employee turnover is identified to cause operational challenges such as service disruption as it affects the drop in quality of service delivered and project delays as turnover of key project roles can cause delays in meeting project timelines. These factors may further cause the drop in overall organizational productivity as well. 

·         Competitive Disadvantages:

Higher employee turnover creates a negative outside perception and damages the reputation of the organization as an employer, resulting in the organizations facing difficulties in recruiting top talent. Further, it creates a hostile and negative work environment impacting the organizational reputation as an employer. This may result in competitors in the same industry or other industries acquiring and retaining the top talent workforce. 


References:

  • Odunayo, H. A. (2022). The effect of employee turnover on organizational performance in the telecommunication industry in Nigeria. Management and Human Resource Research Journal, 11(9).
  •  Griffith, B. R., & Arthur, W. (2007). The impact of job satisfaction on intent to quit: A meta-analysis comparing employed and unemployed samples. Journal of Applied Psychology, 92(2), 483-492.
  • Hom, P. W., & Griffeth, R. W. (1995). Attrition: Causes and consequences. Sage.


Comments

  1. SS Wimalakeerthi6 August 2024 at 19:50

    This write up provides a broad overview on the employee turn over in the telecommunication sector. Aren't there any positive impacts of this turnover situation? Like by getting young fresh blood, some positive impacts might also could be there

    ReplyDelete
    Replies
    1. Mirzab Sheriffdeen7 August 2024 at 18:53

      Thank you for raising an important point. While my blog primarily focused on the negative impacts of employee turnover, recruitment of new talent can bring fresh perspectives and innovation. However, it is important to note that the effectiveness of talent management strategies is critical to maximize these benefits and mitigate potential drawbacks.

      Delete
  2. Maneesha Gamage6 August 2024 at 20:20

    I think well structured exit interview can identify the root cause of high turn over in the industry. Then, the management can develop a strategic plan or strategic change within the company to mitigate the high turnover ratio.

    As you mentioned the financial impact to the company should address wisely. to reduce the new recruitment cost and the cost which is going to train new employees of cause is an additional cost to the company.

    ReplyDelete
    Replies
    1. Mirzab Sheriffdeen7 August 2024 at 18:59

      You have highlighted a critical aspect of addressing high employee turnover. Conducting thorough exit interviews is indeed crucial for identifying the factors that cause employee turnover. By analyzing the employee feedback given during exit interviews, the organizations can implement targeted strategies to address the concerns and improve employee retention. Your point about the significant financial impact on turnover is well noted. Reducing recruitment and training costs is essential for overall organizational health in terms of cost.

      Delete
  3. Sadeesha Kalhara7 August 2024 at 08:54

    As telecommunication engineer, we are currently facing these challenges and organization need to implement HRM strategies to reduce this issues to be actively competitive in the industry. So this blog is explain well and clearly on this matter that every organization need to consider. Implementing a comprehensive action plan that includes leadership training, enhanced communication, participative decision-making, will lead to improved employee engagement, customer satisfaction, and overall organizational performance.

    ReplyDelete
    Replies
    1. Mirzab Sheriffdeen7 August 2024 at 19:05

      Thank you for your valuable insights. It is encouraging to hear that this blog resonates with the challenges faced by telecommunication engineers. Your emphasis on the need for effective HRM strategies to enhance organizational competitiveness is spot on. Implementing a comprehensive action plan that prioritizes leadership development, practice open communication, and employee engagement is indeed critical for boosting employee engagement and organizational performance which will impact positively to lower the employee turnover.

      I would love to hear more about what has worked for you in the telecommunication industry. How do you keep your top performing people from leaving? Your ideas could be helpful to me, my blog and others to know the best practices.

      Delete
  4. Udesh Roshan9 August 2024 at 21:20

    In this highly competitive market, managing employee turnover is critical for maintaining efficiency, customer happiness, and the organization's reputation. Investing in methods to promote staff retention is a strategic essential for long-term success.

    ReplyDelete

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