I disagree. A higher turnover rate means paying the new guy less money. You’ll see this more often when they want to annoy people into quitting so they don’t need to pay unemployment.
They’re using the psychology correctly. It’s just awful for people as a whole. But it can temporarily make their books look good (high sales, low expenses) and justify bigger bonuses for the board.
Generally the people that can leave of their own will are the people you don’t want to leave though. You might save 20% or more on salary, but you also loosing far more in productivity.
High turnover only works when it doesn’t take long for employees to reach a productive level. Now that the market is tightened and there isn’t free money everywhere, companies that survived despite turnover are going to struggle as that cost becomes more obvious.
I disagree. A higher turnover rate means paying the new guy less money. You’ll see this more often when they want to annoy people into quitting so they don’t need to pay unemployment.
They’re using the psychology correctly. It’s just awful for people as a whole. But it can temporarily make their books look good (high sales, low expenses) and justify bigger bonuses for the board.
Generally the people that can leave of their own will are the people you don’t want to leave though. You might save 20% or more on salary, but you also loosing far more in productivity.
High turnover only works when it doesn’t take long for employees to reach a productive level. Now that the market is tightened and there isn’t free money everywhere, companies that survived despite turnover are going to struggle as that cost becomes more obvious.