What is a common result of high staff turnover within a business?

Prepare for the HSC Business Studies Exam with flashcards and multiple choice questions, each with hints and explanations. Get exam ready!

High staff turnover within a business often leads to higher training costs. This is due to the constant need for the organization to recruit and train new employees to replace those who leave. When turnover rates are high, existing employees must spend time onboarding new staff members, which can detract from their regular duties and hinder overall productivity. Additionally, frequent hiring incurs costs related to advertising job openings, conducting interviews, and administering training programs for new hires. Therefore, the increased financial burden of these training and recruitment processes is a significant consequence of high staff turnover.

The other options do not accurately reflect the typical outcome of high turnover. For instance, increased innovation is generally linked to stable teams that can collaborate effectively and build upon each other's ideas over time. Improved employee morale is often compromised when turnover is high, as remaining employees may feel overworked or discouraged by the constant change. Similarly, better customer service typically relies on experienced staff who understand the company’s operations and customer needs, which is more challenging to achieve in a high-turnover environment.

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