by Barry Marcus

Created on: April 15, 2010   Last Updated: August 14, 2010

Every organisation has its share of employee turnover. It is usually a good thing to get some new blood into the organisation, but when employee turnover reaches epidemic proportions it is usually a sign that something is wrong. But there may be situations where a high level of employee turnover is both appropriate and desirable.

Organisations consist of people. Employees leave an organisation for a variety of reasons. Perhaps they are unhappy where they are or a better opportunity has presented itself. Women may leave to have babies. Some leave to relocate, to retire or simply because they need a change.

What are the pros of high employee turnover?

-       Employee turnover promotes change

Turnover helps to keep an organisation alive, allowing it to grow or to recover from setbacks in the market and in the economy. A moderate level of employee turnover usually ensures that there is an element of change within an organisation.

-       Seasonal businesses need high employee turnover to survive

For some types of business, high employee turnover is both inevitable and a necessity. This applies to businesses where work is seasonal or sporadic. This type of business cannot maintain a commitment to long term workers. The answer is to use casual labour as the need arises. At the beginning of a new season fresh employees are recruited. They work in the trade for a number of months or years and then leave.

This can benefit the employer by avoiding having to long term employer-employee relationships when the work-force is not required throughout the year.

-       Project drive organisations

A project driven organisation uses skilled human resources to achieve its projects. People with the right skills are recruited for the duration of each project. At the end of the project, the team members leave to find something new. This has the advantage of not having to incur long-term costs for resources that are only required for a limited time. The construction industry is an example of one that is project driven. Workers are recruited to build roads, stadiums or buildings.  

-       Provide a signal to management

The positive side of high turn-over in a stable environment is that management is likely to receive the signal sooner or later. The reasons that people keep leaving must be investigated and the underlying causes of the high turnover changed.

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