Low Morale

• Whenever a company has a high turnover rate, employee morale usually takes a dive. Employees often become frustrated with all the constant changes taking place and become disillusioned. This feeling is exacerbated when there is a high turnover rate in management and not just with the employees themselves. With each new manager comes new rules and a new way of doing things, and after a few regime changes, the employees may become frustrated or even confused as to what they are supposed to do. When this happens, morale goes down and employees give up.
  
  

Constant Training

• Training is a huge issue in companies with high turnover rates, which is not only very costly for the employers but is also very time consuming. Depending on the position, weeks or even months are taken to properly train new employees to work on their own. Customer service satisfaction levels also plummet whenever new employees are factored in. Mainly, this is due to the fact that new employees are just learning the ropes and aren't knowledgeable or efficient enough to handle complex customer issues right away.
  
  

Lower Productivity Levels

• New employees need time to become efficient at what they do. When they're first hired, they need to learn how to do the tasks at hand and gradually build up speed. In the meantime, productivity levels at the company significantly decrease, costing the employer even more money. Another issue is that new employees are more likely to make mistakes that could potentially cripple an operation. For example, a new employee on a factory production line may get behind and cause a chain reaction that slows the entire plant down.
  
  

Lack of Teamwork

• As coworkers get to know each other over time, they begin building relationships. With this comes a certain level of trust and rapport. Employees in these situations are more likely to work better as a team and help each other out as needed. However, when new employees are constantly thrown into the mix, veteran employees may become resentful and unwelcoming to the new members, which can create internal divides in the company that may hinder productivity and even enhance the likelihood of negative confrontations.