What could be a potential downside of high employee turnover?

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Study for the UCF MAN3025 Management of Organizations Exam. Prepare using multiple choice questions, flashcards, hints, and explanations. Enhance your readiness and improve your performance!

A potential downside of high employee turnover is increased recruitment costs. When employees leave an organization, management faces the challenge of finding and hiring replacements. This process often involves significant financial resources, including advertising job openings, conducting interviews, and onboarding new hires. Additionally, the organization may incur hidden costs related to lost productivity, as remaining employees might need to pick up the slack until new hires are fully trained and acclimated to their roles.

The other options focus on positive aspects of a workplace dynamic that typically do not accompany high turnover. Better team dynamics, enhanced workplace culture, and greater employee satisfaction are more likely to occur in stable environments where employees feel secure and valued, rather than in situations defined by frequent turnover, which can disrupt relationships and create an atmosphere of uncertainty.