Another major issue is the quality of product being produced as the high employee turnover threatened product quality at MexFabrics as inexperienced employees fill the positions vacated by the experienced staff. This can lead to customer dissatisfaction as customers are likely to experience dips in the quality of products.
Another issue is MexFabrics reputation is threaten by the high turnover rate, the cost of employee turnover focuses on production and quality, as experienced staff are leaving the organization, the ability of MexFabrics to maintain a qualified workforce that can consistently produce quality products is challenged thereby negatively affecting the reputation of the company which is known to produce high quality product.
Root Causes
The major root cause of employee turnover in MexFabrics is their organizational structure which involves their reward system, the strength of leadership, the ability of the organization to elicit a sense of commitment on the part of workers. Other root causes