Lack of Turnover Hurts Your Business – Including Your Family Business

Turnover is hard. It’s painful. It means change and loss. It is the inconsistent with the sentiment of rewarding loyalty and hard work with loyalty and longevity.

Advocating for turnover flies in the face of advocating for building trust and predictability–at least superficially. It’s akin to advocating to burn a forest with all the dangers of a forest fire.

There is a reason why it sometimes makes sense to start a forest fire, however. After such a planned fire, old growth is cleared and new growth emerges.

Turnover in a business, including a family business, can have the same effect. It can lead to new responsibilities for those that remain. It often opens the doors to new ideas and ways of doing things. New employees often bring high levels of energy and engagement and their enthusiasm can be contagious.

Perhaps most importantly, adding people from the outside can add their “different” experience to the mix. There is nothing quite like inside knowledge about how other organizations do things when figuring out how to improve. The perspective such a new employee brings is often missing when turnover is low.

We’re not quite ready to say something like, “15% of your management staff should turnover every year” or that, “anyone who’s approaching their 20th anniversary should be let go.” We are saying that there is a price to pay for low turnover and that the occasional planned “burn” has tangible benefits.

Contact us if you have questions, feedback or want some assistance planning turnover.