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Elsa,
A lack of employee retention also impacts your students. Students feel that instability and confusion that you mention and it makes it easier for them to walk away when the going gets rough. Student attrition, of course, impacts your revenue. Employee morale can be impacted, too. When employee attrition occurs, other employees must pick up the responsibilities of the person who left, sometimes with no additional compensation. Employees will accept this for a brief period of time because they feel the commitment but when the position remains vacant for a long period of time, employees feel used and morale suffers.
Pat

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