Over the weekend, I was explaining what I do to a few friends. In describing what we do, I emphasized the need for strong company culture, employer brand, and talent strategy because these elements of a business affect the bottom line in the long run. By not caring about these things, companies risk high turnover, among other consequences. Costing between 25% and 250% of a single employee’s annual salary, high turnover has a profound effect on the bottom line. While explaining this to my friend, he asked, “is there ever a time when turnover is good?” I had to think about this one for a bit. According to Software Advice, new employees who replace those who left can bring new ideas; however, high turnover is traditionally thought of as a negative indicator. That said, there are some industries where turnover inevitably is, and likely always will be, high. For example, retail, food service, or customer service are all industries with high turnover. These jobs consist of a workforce that is typically compensated on an hourly basis.
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