#12c: How high turnover damages performance and culture.

More damaging than direct loss of investment in your employees, but less visible, is the effect of high turnover on team performance and company culture. A team that loses a key member not only loses their expertise, but also suffers a loss of cohesion. They must go through the process of team development again before they are functioning at their highest level. Meanwhile, you bear the cost of a less productive team.

The cultural impact of a high turnover environment is also profound. These companies develop a culture of short term thinking; many employees are unlikely to remain long enough to benefit from actions that trade short-term gain for long-term success. And so, few long-term trade-offs are made.

Related: 3a, 12

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