I build and facilitate roundtables for business owners. In a recent meeting a member shared, “A long-term employee just quit.” A chorus of sympathetic groans rose from around the table. Good employees are hard to find and losing a valued, long-term staff member can be hard.
But there might be an upside. Conversation around the table pointed out several advantages.
Advantage 1: Employees who quit aren’t always the high performers. This is the opportunity to discern whether this employee had been an asset or not. If not, subpar performance drains the company of resources and money. Their turnover creates opportunities to develop new talent, new ideas and new skills.
Advantage 2: New employees bring fresh perspective to the workplace as well as new ideas on operating the business. Their solutions may improve efficiency and, ultimately, profitability.
Advantage 3: With thoughtful management, turnover may improve morale. Disengaged employees drain the workplace of enthusiasm, energy and productivity. When marginal (or exceptional) employees leave organizations, remaining workers may find new focus and enthusiasm for their work.
Advantage 4: When losing a long-term employee, compensation can be restructured with less experienced people coming in at lower salaries.
Advantage 5: Although this wasn’t the case with my member, when a company has involuntary turnover, as in employee termination, it sends a clear message to other employees: if your performance needs improvement, work on it or you too could be looking for another job. While it’s a hardline approach, it often works.
It may take time and effort to replace a long-term employee, but that change can bring benefit and growth to your business.