Turnover: The Real Bottom Line

Abstract

Turnover is the rotation of workers around the labor market; between firms, jobs, and occupations; and between the states of employment and unemployment.1 “In-house engineering,” “revolving door policy,” and “management by turnover,” are a few of the many colorful and euphemistic terms used to describe this organizational phenomenon. By whatever name or form, labor turnover is one of the most significant causes of declining productivity and sagging morale in both the public and private sectors. Management theorists say it lies behind the failure of U. S. employee productivity to keep pace with foreign competition.2