BY Kirk McCarley
Unless filled with apples or cherries, the concept of turnover is generally negative.
Statistics support that assumption. In an NFL game, for example, each team will possess the football an average of 10 to 12 times. Scoring is already difficult in the league, given that the average tally per team is a mere 24 points a game. Were a side to fumble the ball twice and on top of that throw two interceptions, the ability to achieve average will be significantly compromised if not impossible.
In our work environments, the notion of turnover is also troubling. When considering the many ingredients that go into the process of hiring and onboarding a new employee including temporary staffing shortages, the recruitment replacement process, training, and the loss in productivity incurred while the new staff member reaches a comfortable level of competency, some estimate the cost to be at least $15,000 per position!
Still, despite the negative stigma associated with it, organizations do want to strive for an optimum level of turnover. Why would that be?
Consider a company that has a very low employee turnover rate, such as 5% or less annually. That means that on average a staff member is going to remain with that organization for about 20 years. Not a bad thing you would think at first glance, as it suggests a large proportion of that workforce will one day lay claim to “the gold watch.” Contrarily, however, what of that new employee who joins the team with aspirations of working their way up the corporate ladder? With so many of those rungs securely occupied, advancement opportunities are limited. The most highly motivated may leave.
Chronic high turnover also presents hardships to work units. Those organizations so afflicted are never fully staffed, for one, and on top of that the bench strength of those waiting to advance is weak and ill-prepared.
So, is there a sweet spot, and where does it lie?
Miami University in Oxford, Ohio, had a long reputation as a powerful “mid-major” football program in the Mid-American Conference. What made it perhaps most unique was the list of coaches from this university who achieved later success in larger environments. Miami gained a reputation as the “cradle of coaches”, the place from which renowned NFL and college coaches such as Weeb Ewbank, Paul Brown, Woody Hayes, and Bo Schembechler emerged. If any of those legends had not moved on, those who followed would not have had their opportunities.
Former Alabama football coach Nick Saban was also recognized for the coaching tree he developed. Though his staff turned over with some comparative abundancy, there are currently four head coaches leading teams in the 2024 college football pre-season top ten who coached under Saban:
- Kirby Smart, Georgia.
- Steve Sarkisian, Texas.
- Lane Kiffin, Ole Miss.
- Dan Lanning, Oregon.
Achieving the “right” turnover rate is a quantity I can’t answer. It’s a number that varies based on a number of factors, including industry type. What I can say is that for the greater proportion of us who work in corporate environments, there are more critical considerations such as how effectively you are preparing not only your potential successors but those who eventually may be developed for opportunities in other organizations. In your small business, who is being groomed for a more responsible role or for the day when they may be ready to accept the reins of leading your company?
In our families how well are we preparing our kids or grandkids to “fly the nest” to becoming independent and contributing members of society? Though for most of us, the day that happens and they leave the house to go on to the university or their own careers can be saddening, it is an aim as parents.
At work and at home, what can you be doing to create an environment conducive to learning, growth, development, and eventually successful independent living? How well are you carrying out that age-old credo to “teach others to fish so that they may feed themselves for a lifetime?”
A graduate of the University of North Texas, Kirk McCarley is a Certified Professional Coach as well as a Professional in Human Resources (PHR) and SHRM-CP Certified. He also is a Production Assistant for both college football and basketball for ESPN and leads group cycling classes as a Certified Spinning instructor. Contact kirk@theseedsowercoach.com, theseedsowercoach.com, or call 314-677-8779.
Author: Sowal Editor
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