Blog. The Psychological Toll of High-Turnover Workplaces and How to Fix It.
July 02, 2025 | Author Guest Blogger
High staff turnover is a drain on resources - it erodes team morale, strains customer relationships, and creates a cycle of burnout that harms both employees and businesses. For every employee who leaves, the ripple effects are felt across your workforce, operations, and bottom line.
When colleagues leave, the employees who remain are left to pick up the slack. This leads to increased workloads, heightened stress, and ultimately, burnout. Chronic understaffing forces teams into “survival mode,” damaging collaboration and creating an environment where even the most committed staff can feel overwhelmed and more likely to consider leaving themselves.
New hires can take months to reach full productivity, during which mistakes are more common and service quality can suffer. Managers and team leaders have to spend significant time on recruitment and training - time that could be better used elsewhere. Frequent turnover disrupts team cohesion, and experienced staff often grow fatigued from repeatedly mentoring newcomers.
Inconsistent service and errors inevitably increase as new employees learn the ropes. This can impact customer loyalty and damage your business’s reputation, as it takes time for new team members to deliver the same level of service as seasoned staff.
Replacing an employee costs between 6-9 months of their salary (source: EAPA ROI report 2022). High turnover in hospitality brings a significant administrative and financial load. Beyond the obvious recruitment and training expenses, businesses face hidden costs such as lost productivity, overtime for remaining staff, and recurring outlays like uniforms and system access for new hires. These factors add up quickly, making staff retention not just a people issue, but a critical business priority.
High staff turnover is a drain on resources - it erodes team morale, strains customer relationships, and creates a cycle of burnout that harms both employees and businesses. For every employee who leaves, the ripple effects are felt across your workforce, operations, and bottom line.
The Hidden Costs of Constant Churn
Emotional Exhaustion for Remaining Staff - When colleagues leave, the employees who remain are left to pick up the slack. This leads to increased workloads, heightened stress, and ultimately, burnout. Chronic understaffing forces teams into “survival mode,” damaging collaboration and creating an environment where even the most committed staff can feel overwhelmed and more likely to consider leaving themselves.
The Strain of Endless Training - New hires can take months to reach full productivity, during which mistakes are more common and service quality can suffer. Managers and team leaders have to spend significant time on recruitment and training - time that could be better used elsewhere. Frequent turnover disrupts team cohesion, and experienced staff often grow fatigued from repeatedly mentoring newcomers.
Customer Experience Decline - Inconsistent service and errors inevitably increase as new employees learn the ropes. This can impact customer loyalty and damage your business’s reputation, as it takes time for new team members to deliver the same level of service as seasoned staff.
Administrative and Financial Burdens - Replacing an employee costs between 6-9 months of their salary (source: EAPA ROI report 2022). High turnover in hospitality brings a significant administrative and financial load. Beyond the obvious recruitment and training expenses, businesses face hidden costs such as lost productivity, overtime for remaining staff, and recurring outlays like uniforms and system access for new hires. These factors add up quickly, making staff retention not just a people issue, but a critical business priority.
How to Break the Cycle: Mental Health Support as a Retention Tool
High turnover is often a symptom of poor wellbeing. In hospitality, the mental health crisis is well documented – with a staggering 76% of hospitality workers experiencing mental health challenges in their adult life (source: HA Mental Health Survey 2024) - a figure that continues to rise. A quarter of respondents indicated they experienced mental health challenges in the last year, with another fifth experiencing issues in the last 1–2 years. Hospitality Action’s Employee Assistance Programme (EAP) is designed to tackle the root causes of these challenges by providing sector-specific support that is accessible whenever your team needs it most.
Proven Impact on Retention and Morale - EAPs are widely recognised by UK employers for reducing sickness absence, improving productivity, and supporting staff with personal and workplace issues. Managers also gain resources, guidance, and support that enable them to identify and manage employee stress or workload issues - helping to prevent crises before they escalate.
Affordable, Industry-Specific Support - Starting at just £6.95 per employee annually, Hospitality Action’s EAP offers 24/7 counselling, financial advice, and crisis support tailored to the unique challenges of hospitality. For every £1 invested, businesses can see up to an £8 return through reduced turnover, absenteeism, and productivity gains.
What Are You Waiting For?
What Are You Waiting For?
Staff wellbeing and retention are more than just HR concerns - they’re essential to your business’s success. See for yourself how much you could save by investing in your team’s wellbeing.
Get in touch today or use our ROI calculator to find out what a difference Hospitality Action’s EAP could make for your business.
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