The Domino Effect: UBC Study Shows Impact of Employee Turnover

Employee turnover can have a significant ripple effect on businesses, according to new research from the University of British Columbia (UBC). The study found that turnover not only impacts the employee who leaves but also affects their colleagues, their team, and even the organization as a whole.

Key findings: Employee turnover, in the form of terminations, layoffs or voluntary quitting, can influence a business in number of ways.

• When a large layoff occurs, there is a strong increase in voluntary turnover among those who remained at the company. There is a heightened feeling of job insecurity, leading to decreased morale, motivation, engagement and team cohesion that could lead to more employees quitting.
• When an employee leaves, their expertise and knowledge leave with them. This can impact the quality of work, productivity, and overall performance of the team.
• A departing worker’s responsibilities often fall to their colleagues. This can lead to increased workload and stress, which can impact employee well-being and work-life balance.
• The costs associated with turnover, such as recruitment and training expenses, can add up quickly. In addition, turnover can also lead to lost productivity, missed deadlines, and decreased customer satisfaction, all of which can impact a company’s bottom line.

Additional conclusions: UBC’s study revealed the difference between an employee being let go and someone who voluntarily resigns.

• Voluntary departures result in fewer turnovers over a longer period of time. While remaining workers sense that there are better opportunities elsewhere, they won’t leave immediately, but will begin researching alternative employment.
• When a disruptive or problematic worker is fired, their exit has a relatively small impact, and may even reduce voluntary departures in the near future. High performers tend to stay longer in this case.
• If a well-liked or high performing employee is let go without a good reason or justification, it can send the wrong message to other workers, who will start heading for the door. It can also trigger wrongful dismissal claims.

What they say: The study’s co-author, Associate Professor Sima Sajjadiani, notes that “the research sends a clear message to organizations that they should be extremely careful when they make exit decisions, or they risk destabilizing the whole organization very quickly.”

To combat the negative effects of turnover, companies should consider:

• Developing strategies to retain employees. This can include providing opportunities for growth and development, offering competitive compensation and benefits, and creating a positive work environment.
• Fostering a culture of learning. Encouraging employees to share knowledge and skills can help mitigate the loss of expertise when a team member leaves.
• Planning for turnover. Creating a succession plan can help ensure a smooth transition when an employee does leave.

What happens if I am fired from my job?

If you are fired, laid off or involuntarily let go from your job, you are owed compensation in the form of a severance package. Non-unionized employees are entitled to severance pay when they are terminated without cause, and in many “for cause” scenarios as well.

How is severance pay calculated?

For non-unionized employees, the main factors in a severance package include age, length of service, position, bonuses, benefits, and the ability to find new work.

For employees working in Ontario, Alberta and B.C., full severance can be as much as 24 months’ pay.

To figure out how much compensation you may be entitled to, use our firm’s Severance Pay Calculator.

ADDITIONAL RESOURCES
• Severance Pay in Ontario
• Alberta severance packages
• Understanding severance in B.C.
• Layoffs in Canada

Don’t sign on the dotted line!

Do not accept any severance offer, termination papers, or exit agreement that your employer provides you with. Once you sign back these documents, you eliminate your ability to negotiate a fair and proper severance package.

You can also ignore any deadlines that your employer places on a severance offer. You have two years from the moment of termination to file a claim for severance pay. Your rights to proper pay don’t end after 24 hours, two days or a week.

If your employer fails to offer you the correct amount of severance, you can file a wrongful dismissal claim for full compensation through an employment lawyer at Samfiru Tumarkin LLP.

Do I get severance if I quit?

No, you are not entitled to severance pay if you voluntarily quit your job. You can’t access Employment Insurance benefits, either.

Severance pay is compensation that provides someone with financial support until they can secure new employment.

What if I’m forced to quit?

Sometimes you may have no choice but to walk away from your job due to significant changes to your employment or the effect a hostile, toxic work environment. Before you quit, talk to an employment lawyer at Samfiru Tumarkin LLP immediately to determine what your rights are.

You may be able to claim constructive dismissal and receive a full severance package.

Protect your rights

The experienced employment law team at Samfiru Tumarkin LLP has helped tens of thousands of non-unionized individuals across the country.

Our lawyers in Ontario, Alberta, and B.C. stand ready to help you solve your workplace issues.

If you are a non-unionized employee who needs help with an employment issue, contact us or call 1-855-821-5900 to get the advice you need, and the compensation you deserve.