Turnover is often regarded as a negative aspect of the recruitment process and the fear of high turnover encourages many employers to obsess over reducing it to the lowest point possible. However, this may have gone too far. The reality is, a workforce with incredibly low turnover is likely not the paradise you expect. Although a low turnover may help you to feel more confident about retaining your employees and costs for recruitment and training can be saved, your employees will seriously lack motivation and ambition as they no longer have something to fight for. To help you realise the benefits of turnover, here are four ways it can help to boost productivity and profitability.
Increase employee satisfaction.
It’s not healthy for an organisation to have employees present in the workplace who are unhappy/want to leave as their negative attitudes infect other employees. Therefore, whether it happens involuntarily (discontinuing contracts) or voluntarily (resignations), turnover is able to enhance the working environment as the bad influences are removed and what’s left is employees who are committed and productive. This is a more favourable form of turnover as it can improve the overall working environment.
Discover new talent.
When employees move on it creates space for new staff to enter with new ideas and perspectives. The need to recruit these new employees also encourages the recruiters/employment specialists to revise and revamp the recruitment method, in order to stand a better chance of finding the best candidates for your vacancies. This may lead to you hiring someone you may not previously have considered and as a result, they could provide a significant change/improvement to your business. The truth is, although the hard work of long-term employees is much appreciated by employers, a business cannot grow without the innovative ideas that fresh meat provides.
When you recruit someone for a vacancy you offer them a starting wage which will be considerably lower than the wages you’re paying long-term employees. The money you save by offering starting wages can then be put towards improving your benefits packages which will inevitably establish employee loyalty and help you to retain the talented and high-performing individuals.
Boost employee motivation.
When people in relatively high positions leave, their roles are often filled by current employees who have established trust and impressed you during their time at your company. By having progression within the company as an option and making your employees aware of this, you are giving your staff something to aim towards and this goal will motivate them to work at a high standard. The positions your current employees vacate to move into higher positions can then be filled by the fresh talent you need for your business to progress. By recognising your staff via the opportunity for advancement within the company, you will retain talented individuals as well as inject innovative ideas via new employees.
So when it comes to revising your recruitment strategy, don’t obsess over the level of your turnover. Of course, if it’s high, then this indicates there is a problem that needs to be addressed. But don’t unnecessarily strive to get it to the lowest point possible as this could actually do more harm than good.