Can Employee Turnover be Too Low?

Andrew shares 5  reasons why employee turnover can be a good thing.

  • Employees who are not meeting expectations are replaced with people that can
  • New employees bring new ideas to your company
  • New employees often challenge management and offer suggestions
  • Gives companies a way to restructure and phase out unnecessary positions
  • Shows your top people that there is no culture of entitlement



Can employee turnover be too low?

To continue to build off of my post from a few weeks ago, today I want to talk about employee turnover. Can employee turnover ever be too low?

The short answer to that question is, “Yes,” employee turnover can be too low.

There can be a lot of discussion about what the right number is, but just like an economy’s unemployment rate, the turnover rate should never be zero or close to it. “But this goes against everything we’ve ever learned,” you might say.

Here are some reasons why employee turnover can be a good thing:

  • Employees who are no longer meeting or exceeding expectations can be replaced with people who can.
  • New employees breathe new ideas into the organization, bring new energy and a different perspective.
  • New employees aren’t afraid to challenge the way the company operates if they have a better way of doing things.
  • It gives the organization the opportunity to re-create the structure and accountabilities of various job functions.
  • It shows your top people that there is no culture of entitlement. People need to continue to earn their positions.

Having loyal employees who stay with an organization is not a bad thing, as long as those employees are growing with the organization. The way an organization operates now is different than it did 15-20 years ago. Without new ideas and people who are able to adapt to the changing environment, companies will fall behind their competitors.