---
title: The true costs of indirect staff turnover (5 considerations)
description: In this blogpost find out five ways in which indirect staff turnover can contribute towards cost and disruption within a business.
image: https://grassgreener.global/hubfs/Blog/gg-blog-The%20true%20costs%20of%20indirect%20staff%20turnover%20(5%20considerations).webp
---

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# The true costs of indirect staff turnover (5 considerations)

Jun 5, 2023 11:17:51 AM

[Emily](https://grassgreener.global/blog/author/emily)

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Indirect staff turnover refers to the cost and disruption to a business caused by the departure of a new employee who has not been with the company for at least 12 months.

Here are 5 points to explain the impact of this on a business:

1. ##### [Recruitment costs](https://grassgreener.global/blog/the-true-costs-of-indirect-staff-turnover-5-considerations#one)
2. ##### [Reduced productivity](https://grassgreener.global/blog/the-true-costs-of-indirect-staff-turnover-5-considerations#two)
3. ##### [Decreased morale](https://grassgreener.global/blog/the-true-costs-of-indirect-staff-turnover-5-considerations#three)
4. ##### [Lost knowledge](https://grassgreener.global/blog/the-true-costs-of-indirect-staff-turnover-5-considerations#four)
5. ##### [Reputation damage](https://grassgreener.global/blog/the-true-costs-of-indirect-staff-turnover-5-considerations#five)

 

##### What could making the wrong hire actually cost you?

##### [Let our FREE bad hire calculator do the maths for you here](https://grassgreener.global/bad-hire-calculator)

 

#### **1. Recruitment costs**

When an employee leaves within the first year, the business incurs recruitment costs again to fill the position. These costs include advertising, recruiting, interviewing, and training the new hire.

 

#### **2. Reduced productivity**

The process of recruiting, hiring, and training a new employee can take time, leading to reduced productivity and missed opportunities for the business. This can impact the overall performance of the team and the company.

 

#### **3. Decreased morale**

High turnover rates can decrease employee morale, as it creates a sense of instability and uncertainty within the team. It can lead to other employees questioning their own job security and reduce their commitment to the company.

 

#### To have a chat about how GrassGreener Group can help save you time and money when it comes to your recruitment process, [click here](https://outlook.office365.com/owa/calendar/GrassGreenerGroupCalendar@grassgreener.co.uk/bookings/)

 

#### **4. Lost knowledge**

When an employee leaves, they take their knowledge, skills, and expertise with them. If the employee has been with the company for less than a year, this loss can be particularly damaging, as they may not have had the opportunity to fully transfer their knowledge to their colleagues.

 

#### **5. Reputation damage**

High turnover rates can harm a company's reputation, both among potential candidates and customers. Prospective employees may be wary of joining a company with a high turnover rate, while customers may lose trust in a company that is unable to retain staff.

 

#### Closing thoughts…

Indirect staff turnover caused by the departure of a new employee who has not been with the company for at least 12 months can be both costly and disruptive. Recruitment costs, reduced productivity, decreased morale, lost knowledge, and reputation damage are all potential consequences. By focusing on improving retention rates, businesses can reduce these costs and create a more stable and productive work environment.

 

##### [Click here](https://grassgreener.global/blog/the-true-cost-of-a-bad-hire-exposed) to discover further 7 factors to consider when it comes to the true costs of a bad hire.

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