Don't Worry, Turnover Is Good!
Well, maybe it’s good. At least some of it is good. As HR experts, we feel it is important to clarify that not all turnover is bad. Tracking voluntary vs. involuntary turnover and rehires provides insights on "good" vs "harmful" attrition.
There is another reason turnover might be good (even if it's the bad kind). It means you recognized it and now you can work to fix it.
For a more comprehensive discussion about turnover and what it is, you can read our Ultimate Guide To Turnover
Here's a simple breakdown:
Voluntary turnover is when employees resign of their own accord. This can be further categorized as:
Regrettable voluntary turnover
means losing top performers you want to retain. This is the most damaging turnover.
Non-regrettable voluntary turnover
describes lower performers leaving who don't meet expectations even after coaching. Some degree of this turnover can indicate effective performance management.
Strategic voluntary turnover
is when we allow poor culture fits to resign while focusing retention efforts on your stars.
Involuntary turnover
is dismissing employees due to poor performance or misconduct issues.
Some level of essential involuntary turnover is expected. To go further, it is necessary and often welcomed by managers. A good HR team will facilitate involuntary turnover when it benefits a team, department, or the company as a whole. When this happens, it really should not be viewed by management as bad turnover or incorporated into analytics that try to tell a story about disruptive turnover.
Tracking rehires also provides context.
For example, boomerang employees returning indicates your workplace or pay may still be competitive.
The key metric is your rate of regrettable, voluntary turnover of high performers.
This signals retention problems needing action. A really good HR expert can help you analyze who is leaving and why; and then develop targeted initiatives enhancing culture, pay, development opportunities and management support.
The goal isn't zero turnover, but minimizing regrettable loss of talent. With rigorous HR analytics, you can determine if turnover trends are constructive or destructive - and turn harmful patterns around.
If you want to start tracking and calculating your turnover correctly, read our next post here.
Want more Employee Turnover topics? We've got 'em! Check out our entire series available through the links below.
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Joseph Campagna, SPHR, SHRM-SCP is president and owner of My Virtual HR Director, a human resources outsourcing company serving small and medium sized businesses nationwide. My Virtual HR Director provides an executive level HR advisor to companies that can’t afford or can’t justify hiring a fulltime HR professional on staff.
With twenty years of experience dedicated to the HR profession, Mr. Campagna has honed his skills as an expert in compliance, talent management and employee relations. Bringing human capital management experience from start-ups, IT and biotechnology companies, employee leasing, and fortune 100 behemoths Mr. Campagna has filled his tool belt through generalist work, executive positions, and consulting opportunities with companies such as ADP, Merrill Lynch, and Johnson & Johnson. As Vice President of HR for biotech company Hemo Concepts, as well as the head of HR for the global IT solutions company, the Galaxy Group, Mr. Campagna created rich and successful organizational development and employee engagement programs.
Having worked with a diverse group of companies and clients in a broad spectrum of industries and environments, he brings a unique HR philosophy to every organization he works with. “HR is not the picnic department,” he says “but instead bears the full responsibility and the unlimited potential for a highly productive and efficient workforce. If HR systems are successful, the organization’s revenue should be increased.” From mergers and acquisitions, to IPO’s, to new product development, to divestiture Mr. Campagna has a true business background to support his HR Architecture.
Mr. Campagna is certified as a senior professional through both the Human Resources Certification Institute (HRCI) and the Society for Human Resource Management (SHRM). The HRCI designation of Senior Professional in Human Resources (SPHR) is an experienced-based examination certification. The SHRM certification is a competency based examination certification. Each is a premier designation in the world of HR and recognized by the Society for Human Resource Management of which Joe is a national member and former chapter president.
Mr. Campagna brings decades of helping small and medium sized businesses create HR structures such as employee handbooks, performance systems, talent management, training programs, and employee engagement. He knows how to deliver business results through HR aligned objectives.
Nearly 30 years of expertise and HR executive authority combined with a group health insurance license and certifications from the Society for Human Resource management and the Human Resources Certification Institute have given Joseph Campagna the guru status that has earned him leadership roles, board of director roles, and speaking engagements related to human resources.