Turnover
The rate at which people leave an organization and must be replaced is known as turnover. That amount can get surprisingly high. For example, there are companies with turnover rates that run 20 to 30 percent and higher. On the high end, that means every year, you're replacing close to a full third of the people in the organization. If you've ever had to recruit people, you know that's a painful prospect.
People Have Choices
There's a saying in smart business: No one owes you an order. It's true, and the concept is actually broader. No one owes any organization loyalty, hard work, or constancy. To expect that people must remain loyal to their employer is as outdated as the concept that a company will take care of the fiscal needs of its employees for life.
For corporations, when the economy is booming, it becomes increasingly difficult to retain people, who always assume that there is something bigger and better waiting for them elsewhere. The tough thing for the corporation is that this is almost always true when the industry is doing well.
When the economy isn't doing so well, companies can't afford the inefficiencies that get masked in better times. Knowledge and experience going out the door can cripple an enterprise. And the problems aren't limited to the for-profit world. When all is right with the economic world, people have lots of options for their spare time. Crank back household income, and you might find volunteers thinking more carefully about how they handle their time.
Not long ago, companies thought outsourcing was the solution to all their problems. Moving work overseas would drop costs and reduce the need to deal with their own employees. But now those outsourcers are actually outsourcing their work — back to the United States. Dealing with employees didn't go away — it just got more difficult.
Turnover Happens
No matter what, you will always experience turnover, and often it's good. You want people to learn and then to move on to greater opportunities and responsibilities. Such growth is actually the sign of a healthy organization. Sometimes team members want more growth and responsibility than you can offer. That is healthy turnover.
However, it is unhealthy when an organization effectively pushes people out. It's a pity, but this is by far the more common type of turnover. Sometimes the
