Organizational Turnover

1 Organizational Turnover Turnover is an inevitable part of an organization, considering that employees are constantly leaving in search of beer ventures or due to violation of organizational standards. In the case scenario, the departure of the sales associate and the termination of the newly hired contractor present two distinct cases of organizational turnover that can be viewed from both positive and negative perspectives.

The positive impacts of turnover due to the departure of a sales associate for a competitor include the potential to recruit and hire a more skilled sales associate with innovative and inventive skills that would improve sales strategies and team dynamics (Chen & Yu, 2014).

Also, considering that the sales associate was only slightly above the average, the organization now has an opportunity to hire a more experienced sales associate at a similar cost. This would maximize utility to the organization while minimizing operational costs.

2 Nevertheless, the departure of the sales associate to a competitor introduces the risk of losing institutional knowledge. The associate is expected to have a lot of information and knowledge about the company that may be lost or exposed to competitors. The latter may cause the competitor to gain strength relative to the company. The departure of the sales associate would adversely affect the work morale of other team members, hence compromising organizational efficiency.

The other turnover of a newly trained contractor illuminates the organization's high standards for effective customer service. It also serves as a general deterrence for other employees to uphold the high standard. The turnover could improve the city’s relationships with the local contractors who value and uphold high customer care standards. On the contrary, losing the newly trained contractor could lead to investment loss as the city had invested money, time, and other resources for the inspector's training during the year. The organization may also face challenges recruiting another contractor. Besides, recruiting another employee would attract other hiring costs, reducing profitability.

The general benefits of turnover include the ability to hire staff with more competent expertise in the field. The new employees are likely to be equipped with new knowledge relevant to the contemporary market, new ideas, and better team dynamics (Chen & Yu, 2014). Turnover also allows an organization to remove underperforming employees and adjust the human resources to fit organizational needs and other financial resources.

Nevertheless, turnover can be unhealthy, especially when high-performing employees are lost to competitors. This can potentially increase organizational vulnerability to competitors by, for example, sharing organizational secrets with competitors, disrupting team dynamics, and losing institutional knowledge (Michele Kacmar et al., 2006). Recruiting and orienting

3 employees is also costly in terms of time and money. Besides, unhealthy turnover may hurt organizational reputation, adversely affect employee job security, and correspondingly, job morale and loyalty to the organization.

References Chen, C. F., & Yu, T. (2014). Effects of positive vs negative forces on the burnout-commitmentturnover relationship. Journal of Service Management, 25(3), 388-410.

Michele Kacmar, K., Andrews, M. C., Van Rooy, D. L., Chris Steilberg, R., & Cerrone, S. (2006). Sure, everyone can be replaced...but at what cost? Turnover as a predictor of unitlevel performance. Academy of Management Journal, 49(1), 133-144.