The Positive Side of Staff Turnover

Source: Partner’s Report

If an employee’s performance is slightly less than adequate, it may be wise to help him or her improve. However, if improvement is not likely, replacement is more effective. There are other positive aspects to turnover:

• Opportunity to improve the quality of staff exists.
• Without turnover, everyone drifts to the top end of the pay scale.
• Turnover reduces total salaries.
• Turnover provides opportunity to promote skilled staff.
• Turnover brings people with new ideas to the firm.
• Turnover allows the firm to create better compatibility between staff and jobs to be done.
• Employees who don’t fit with the firm’s culture, or who have poor attitudes, are better terminated than retained in the name of low turnover.

From Partner’s Report—the Monthly Update for CPA Firm Owners, October 2006, p. 9. For subscription information contact Institute of Management & Administration, Inc., 3 Park Avenue, 30th Floor, New York, NY 10016-5902. One-year subscription $349. 212-244-0360, [email protected].