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High Turnover

High Turnover

Turnover is an important facet of any business. It is necessary to a certain extent, but when it costs more than it benefits… it's deemed as unnecessarily high. The average turnover rate for businesses is around 12% to 20% (Stowers), making anything above that a call for attention.

Involuntary turnover, when a company lets go of an employee, has many types. These range from poor performance and unsatisfactory background checks, to insubordination and lay-offs. These types are considered functional because they are saving the company from distress in the long run. Voluntary turnover, on the other spectrum, is considered dysfunctional because it costs more. Examples of this are when employees find other jobs, return to school or relocate.

Reasons for high turnover vary within every company. There are even industries susceptible to it such as hospitality, food services, construction and retail. Dysfunctional turnover typically occurs due to poor work/life balance, little to no opportunity for growth, feelings of being overworked, and being part of a toxic work culture (Holliday).

The good news is that there are liable ways to combat this issue. Even companies expected to have high turnover, like In N Out, have managed to have one 4-6x less than the industry average. With flexible positioning, internal transfers are made possible so that employees are placed where suitable. Having flexible schedules also eases stress. Encouraging a healthy work/life balance by emphasizing the humanity of employees makes them feel appreciated. Employees shouldn’t be expected to behave like robots who don’t need a lunch or bathroom break. When companies encourage retention in the early stages, it will most likely be maintained (6 strategies to reduce employee turnover).


6 strategies to reduce employee turnover. Walden University. (n.d.). https://www.waldenu.edu/online-masters-programs/ms-in-human-resource-management/resource/six-strategies-to-reduce-employee-turnover

Holliday, M. (2021, January 13). Why employees leave and how to prevent it. Oracle NetSuite. https://www.netsuite.com/portal/resource/articles/human-resources/employee-turnover-causes.shtml

Stowers, J. (n.d.). Employee Retention: What Does Your Turnover Rate Tell You? business.com.https://www.business.com/articles/employee-turnover-rate/

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