Recent research has shown that employee satisfaction and engagement are in a tailspin. At the same time, HR departments are making sweeping updates in processes and technologies. As a result, some of HR’s biggest concerns these days are both keeping morale up among existing staff and improving talent retention.
So when a key team member resigns, the tendency may be to hyperventilate a little. In general, we don’t like turnover. The search for replacements takes time and money. The more vital the role, the more crucial it is to place the right candidate.
But remember, turnover is normal. Good, even, in the right circumstances. Managers probably don’t lose much sleep when an under performer hands in his notice. Apparently, there is a rate of turnover at which productivity is actually optimized. The University of Melbourne conducted a study that found that the optimal turnover rate for maximizing productivity is between 0.27 and 0.38, depending on the industry.
Keeping this in mind may help to quash some anxiety about turnover in your company. That it exists isn’t an issue, but if turnover levels at your company deviate significantly from industry norms, there may be cause for concern.
Read more here.Published by Conselium Executive Search, the global leader in compliance search.