I recently read an article about the indirect costs of a high turnover rate. I understand the costs involved with the hiring, training, and insuring processes. I also realize the costs involved with those processes are honestly intended to add value and usually do. A high turnover rate is almost always due to a lack of a quality effort at managerial levels. Arrogance, incompetence and a poor hiring/firing technique is usually why good employees leave and you find your organization filling up with "C" players. A high turnover rate usually consists of good employees leaving and "Managers in Disguise" as leaders not recognizing their role in it or even worse, recognizing the high turnover rate and ignoring it.
A high turnover rate is not due to the C players creating a mass exodus. There's no chance of them even considering looking for another job as long as the "Managers in Disguise" are willing to tolerate their dysfunction. The C teams do have unrealistic expectations about what they should be able to get away with.
A low turnover rate is also expensive. If you do not turnover the C teams regularly, your good employees are still going to be looking for better places to work. Places that they think might just have their best interests in mind. Places that wouldn't tolerate poor behavior and poor performance issues. A regularly scheduled turnover of the C teams is a win-win for everyone. You'll be sending the C players on their way with instructions to find something they're truly passionate about and at the same time, proving to your A and B teams that you have heard their expectations and are delivering on those expectations in a timely manner. You'll find that letting go of the employees that aren't as passionate about your work as you and your teams need them to be is a motivational experience for all, especially the C teams. Moving them on is usually the best thing that ever happened to them in regards to their working lives.
Controlling the turnover rate is accomplished by having only the right people on the bus and all those people in the right seats combined with a well thought out hiring/firing technique and consistent discipline. Willingly handing paychecks to people who aren't doing their jobs does not a successful organization make.
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