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Which outcome is least likely to result from high employee turnover?

  1. Increased training costs

  2. Decreased team morale

  3. Improved workplace diversity

  4. Loss of organizational knowledge

The correct answer is: Improved workplace diversity

High employee turnover typically leads to several detrimental outcomes for an organization, and one of those outcomes is a loss of talent and knowledge that can significantly hinder business operations. When employees leave frequently, organizations must invest more in training new hires, which contributes to increased training costs. Team morale often suffers as remaining employees might experience stress, increased workloads, or distrust toward the organization’s stability, resulting in decreased productivity. Additionally, the departure of skilled employees can create a knowledge gap that is difficult to fill quickly. In this context, the outcome that is least likely to result from high employee turnover is improved workplace diversity. While diversity can increase because new hires may bring varied backgrounds and perspectives, this is not a direct or guaranteed outcome of high turnover. In fact, frequent turnover can sometimes lead to a more homogenous workplace if new employees continue to come from similar educational or industry backgrounds. Therefore, while diversity can be affected by turnover, it is not a direct consequence and is least likely to be seen as a result of this phenomenon.