It is said that the current generation of workers will have

It is said that the current generation of workers will have a very small probability of being employed by the same firm throughout their work life. In previous generations it was common for people to have just one employer. Is a more rapid turnover among employees beneficial to the firm? To the employee? Explain

Solution

High turnover is financially costly to the business because it needs to spend time and resources filling the position and training the new employee. This cost can be about 30 percent of the position\'s annual salary. In addition, high turnover can lower employee morale and cause a flood of people leaving because they see their peers doing the same thing. High turnover can also make the remaining employees more stressed out because they have to fill in the gaps until a new employee is hired and trained.

Voluntary turnover and involuntary turnover both make way for infusing talent in an organization. Employees who leave of their own volition as well as employees who leave due to involuntary discharge aren’t always high performers. Employees with subpar performance drain the company of resources and money. These turnover scenarios create opportunities for an employer to recruit new talent with new ideas and emerging skills.

Infusing talent also leads to updated work processes with technology-driven solutions. New employees bring a fresh perspective to the workplace as well as new ways of operating the business. Many of their solutions improve efficiency and, ultimately, profitability.

Involuntary turnover, as in employee termination, sends a message to other employees. It’s a testament that the disciplinary process works and that if performance doesn’t improve, they, too, can be terminated for poor performance, behaviour or misconduct. While this is a hard-line approach to seeing the advantages of turnover, it often works.