Considering all the drawbacks that workforce attrition presents to the organisation, you might be surprised to learn that some types or amount of staff turnover can be good for business. For example, internal turnover – which is the movement of personnel from one project or function to another – can be positive since you’re able to retain your highly skilled and trained employees within your company.

The key is to use employee turnover as an opportunity to improve your recruitment and management policies and turn it into a means to further grow and develop your organisation.

Here’s how you can take advantage of your company’s fair share of turnover:

1. Improve your talent

A bit of turnover can be healthy if it allows you to get rid of undesirable employees in favour of someone who can add value to your business. It’s a strategy that worked well for General Electric and its former CEO, Jack Welch, who made it part of the company’s annual performance policy to replace employees who were at the bottom 10% of the workforce. In effect, GE became an industry leader and a profitable enterprise for years.

Today, more organisations are following suit, engaging in employee ranking to further identify the top 20% and middle 70% of their workforce which they use as basis in giving out employee compensation and training benefits.

2.Prevent complacency

This has also something to do with the mindset of certain employees, who don’t work hard enough to be able to keep up with the company’s vision to always try to innovate its products or services.

Such employees are hesitant to take things to a higher level because they’re too comfortable with their current status or position. It goes without saying though that a stagnant company and workforce can be a bad recipe for business success.

3. Review your manpower costs and incentive allocations

You might be incurring high manpower costs without you realising it, and dealing with employee turnover can give you an opportunity to revisit your compensation or retention policies. An appraisal system that evaluates your employees’ performance is primarily aimed at helping you identify which of your employees is deserving of salary increases or bonuses or which ones need mentoring.

Employee appraisal and ranking can even assist your managers in addressing performance issues among unproductive workers and coming up with appropriate interventions to help someone improve before the need for termination of employment arises.

4. Broaden your perspective

Bringing new employees on board gives you a chance to discover a new breed of thinkers and doers who may have a different set of perspectives that are unconventional with your current workforce.

A diverse set of employees can provide the balance that you need to honestly evaluate which ideas can drive growth for your business. Your new hires might also have relevant experience learned elsewhere that can help shape new directions for your company.

5. Stay competitive

In today’s era, where technological innovations are becoming the norm, you need employees who can adapt to changes that are taking place in real time. Otherwise, you might find yourself stuck with employees with no understanding of how important it is to readily grab the opportunity to learn new ways of doing things in the workplace, so you could be a game changer in your industry.

From Employee Turnover Rates: An Industry Comparison by Nathan Kitto originally posted on Recruitment Buzz

Looking to recruit via an agency?
Read our report “The Ultimate Guide to Finding a Recruitment Partner

Not yet benefiting from flexible workers?
Read our guide “Why Using Temporary Workers Will Grow Your Organisation”

How can you be sure you’re doing all you can to attract the right talent for your organisation?
Read our guide “The Ultimate Guide to The Recruitment Process”