Employee turnover can significantly affect an organization’s operations and long-term success due to its financial impact and delay in hiring and onboarding new team members.

While most organizations try to manage high rates of retention and keep current employees stay longer, it comes with downside, high rates of retention can also have unforeseen consequences for organizations when disengaged employees make up a significant portion of the overall number of retained employees.

Too many percentage of disengaged employees is a potential downside to retention that many leaders don’t consider until it’s already a problem.

Employee retention can directly affects performance, productivity, culture, profitability, and customer satisfaction of an organization in positive and negative ways. While the high costs of turnover make retention essential for an organization’s future success, retaining the wrong employees can have negative impact on performance and the organization as a whole. 

Building engagement strategies that help organizations retain the best employees requires a thorough understanding of the pros and cons of retention and how they impact organizations.