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CareersUntil recently, HR and line managers focused on maintaining a low employee turnover (the rate at which employees leave an organisation and are replaced by new ones). However, research conducted by the Right Management Consultancy earlier this year reveals that when poor performers resign of their own accord instead of being terminated, or when employees with outdated skill sets retire, turnover is classified as ‘desirable’, and improves organisational profitability in a number of ways and therefore has several benefits.

These include:

Infusing talent. Turnover makes way for new employees. The ‘new blood’ brings varied perspectives and innovative solutions that add value to the organisation. Additionally, they are open to learning new skills and adapting to change, and are usually equipped with skills that are crucial for competing effectively in a constantly evolving business world.

Reevaluating the existing setup. When employees leave, line managers usually maximise the potential of existing and new employees by assigning projects according to their employees’ skill-sets. This is also the ideal time for line managers to redefine job descriptions and restructure departments, and eliminate redundant hierarchies; this saves costs and optimises efficiency in the long run.

Boosting morale. Disengaged employees sap enthusiasm, energy and productivity from the workplace. When these marginal performers leave, it increases motivation among the employees who have stayed at the organisation and they then tend to be more focused, driven and dedicated to meeting and surpassing goals. Line managers should conduct periodic performance appraisals after experiencing a turnover; this will boost morale among employees as these appraisals will help them be more aware of their strengths and weaknesses, and the changes that need to be incorporated in their work practices to achieve their objectives.

Ultimately, turnover results in a new workforce that brings new ideas and perspectives. This enables organisations to spot changing industry trends, break out of the status quo and take risks to adapt and succeed in a constantly changing environment.

– Sahr Nadeem
The writer is a project coordinator at a multinational company. sahrnadeem@gmail.com

First published in the Careers Section of The DAWN National Weekend Advertiser on June 1, 2014.