A CEO problem – The domino effect of high turnover at the teller line
Often, the only time the C-Suite becomes involved in recruiting is during the search for a strategic leader. This makes sense, but it is also vital that the C-Suite fully appreciate the impact of high turnover lower in the credit union’s hierarchy and approach these challenges strategically. This deeper dive is essential because high turnover, even at the entry-level positions, has a domino effect across the entire enterprise. Here are seven organizational impacts of high turnover:
- Disrupted Service Continuity: Tellers are the face of the credit union, often forming lasting relationships with customers. When turnover is high, these relationships become fragmented, leading to inconsistencies in service delivery. When members encounter new faces at every visit, the rapport and trust built over time are disrupted. Continuity is vital in fostering customer loyalty, and frequent turnover undermines this crucial element.
- Increased Training Costs: Constantly onboarding new tellers incurs significant training expenses. Each new hire requires time and resources, from teaching operational procedures to instilling the credit union’s values and service standards. High turnover amplifies these costs, diverting funds from other areas of the credit union’s operations, such as technology upgrades or community outreach programs.
- Diminished Employee Morale: High turnover breeds instability and insecurity among existing staff. When colleagues frequently depart, remaining employees may feel overburdened by the extra workload or demoralized by the lack of team cohesion. Low morale can lead to decreased productivity, absenteeism, and perpetuation of the turnover cycle as disillusioned employees seek greener pastures elsewhere.
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