We frequently encounter organizations who tell us turnover is part of their business model.
While we understand and advocate training low performers and setting an expectation of increased performance, we believe high turnover often is a symptom of not hiring right in the first place.
Turnover can also be a symptom of under trained management and leadership.
There is management concept of unknown origin: "The firings will continue until morale improves".
We believe this simply is a bad business practice. Low performers who do not improve do need to be assigned elsewhere or counseled "off the bus" to paraphrase Jim Collins. This is a normal part of growing an organization and there are acceptable rates of performance based staff reductions for most organizations. However dismissing high turnover as part of the business model, sugarcoats its true economic cost.
Recruiting and training new people is expensive. The greater cost may be the high numbers of former employees, especially ones who feel mistreated by lack of training or dictatorial management and leadership styles, who become ambassadors for your competition.
If you are experiencing high turnover, we advocate that you look closely at hiring for job fit, so you get it right the first time. We also advocate ongoing training for direct reports and especially their managers and leaders.
Great management and leadership takes skill and is not necessarily an innate trait. We believe these skills need to be taught proactively and not left to chance.