Employee turnover rates are closely correlated with an organization’s overall trajectory, but it’s not always cut and dry. There are different types of turnover and different circumstances that create it. Understanding the fundamentals will help organizations understand where they actually stand, and what steps, if any, need to be taken to address it. First, there are two primary differentiators when it comes to turnover. Voluntary turnover happens when employees decide to leave a company of their own volition. This could be due to retirement, relocation, or a better job offer. Involuntary turnover occurs when an employee who would otherwise keep working at a company is terminated. This could be for poor performance, committing an offense, or absenteeism. Once these types of turnover are understood, it can be determined if an organization's turnover rate is healthy or unhealthy. Not all turnover is bad. A great employee could reach retirement age, opening up room for a talented successor, or a good employee could reach the peak of her contribution before becoming frustrated and stagnant, bringing down the morale of those around her. Sometimes when an employee leaves, it’s the best thing for both parties. This is why the knee-jerk reaction of “turnover is bad” might not be the best mantra.
Not all Turnover Is Bad