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Leone Technologies has been serving the New Jersey area since 2003, providing IT Support such as technical helpdesk support, computer support and consulting to small and medium-sized businesses.

Churn and Burn: Employee Turnover and Burnout Hurts Business

Churn and Burn: Employee Turnover and Burnout Hurts Business

Running a business can be really hard and filled with difficult decisions. Some of the most important surround the policies that make it possible to retain your employees; and ensure that they are effective at the job you are paying them to do. In today’s article, we talk a little bit about how problematic it can be when you are forced to deal with a workforce that has a high percentage of turnover or employees that are too distracted and burnt out to be effective.

Employee Churn

Employee churn, also known as employee turnover, refers to the rate at which employees leave a company and need to be replaced by new hires. It is typically expressed as a percentage and can be calculated over a specific time period. In 2023, the average churn rate for a business was about 18 percent. That means that just about one-in-five positions you have filled will need to be refilled over a 12 month period. Of course, high employee churn can be problematic for organizations as it may lead to increased recruitment costs, a loss of institutional knowledge, and potential disruptions in workflow.

 Some of the best ways to avoid a high churn rate include:

  • Create a positive company culture
  • Make compensation commensurate with responsibilities
  • Create workplace flexibility
  • Promote employee engagement through feedback
  • Improve your diversity and inclusion

Employee Burnout

Employee burnout is a state of chronic physical and emotional exhaustion, often accompanied by feelings of cynicism and detachment from work. It is a result of prolonged stress and can negatively impact an individual's well-being, productivity, and job satisfaction. Burnout can be caused by various factors, including excessive workload, lack of control over work, insufficient rewards or recognition, and a mismatch between an individual's values and the organization's culture.

Here are some ways to improve your business culture to help your employees avoid or reduce their burnout:

  • Promote work/life balance
  • Keep on top of workloads and scheduling
  • Encourage the use of vacation time 
  • Provide outlets to promote mental health
  • Take an active interest in your workforce’s career development

While these two concepts are distinct, they can be interconnected. High employee churn may be indicative of workplace issues that contribute to burnout, and burnout may, in turn, lead to increased turnover.

If your business needs technology that will allow you to better support your employees and keep them more productive and satisfied with their work experience, give Leone Technologies a call today at (856) 524-7045 .

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