Embracing Healthy Turnover

Team member turnover in the workplace is inevitable and often associated with challenges. However, healthy turnover can revitalize a team and promote growth. By understanding turnover’s dual nature and managing it wisely, leaders can create an environment where both team members and the organization thrive.

Understanding Turnover from an Employee’s Perspective

There are many reasons why team members leave, and not all are negative.

Negative reasons for turnover include:

• Lack of belonging: People want to feel valued, included, and part of the culture.
• Toxic environment: A negative culture or unhealthy workplace dynamics push people out.
• Stagnant growth: Without career development or investment in their growth, employees lose motivation.
• Compensation issues: Employees who feel underpaid compared to their contribution often look elsewhere.
• Limited advancement opportunities: If there’s no clear path upward, team members may leave to achieve their ambitions.

On the other hand, positive reasons for turnover can be a sign of a thriving organization. These include:

• Life changes that shift priorities or availability.
• External recognition: High performers may be recruited by other organizations.
• Outgrowing roles: Skilled team members may seek opportunities unavailable within your organization.
• Financial opportunity: Competitive offers can reflect the market value of a team member’s contributions.

From a leader’s perspective, positive turnover can also be healthy:

• Talent evolution: As the organization grows, new perspectives and skill sets bring fresh energy.
• Fighting complacency: Long-standing employees sometimes grow too comfortable, while new team members challenge the status quo.

The goal is not zero turnover but a balanced, healthy amount driven by positive motivations. Leaders can play a key role by minimizing negative turnover while welcoming the positive.

Strategies for Leaders to Manage Turnover

1. Set Clear Expectations and Accountability Every team member deserves clarity in their role, objectives, and responsibilities. A crystal clear job description, well-defined KPIs, and clear accountability create a fair and rewarding environment. A loose, unstructured job might seem freeing at first, but the lack of direction can quickly turn frustrating. People want to be rewarded for their good work, and a strong framework helps them know where they stand and what success looks like.
2. Listen to Your Team In the evolving post-COVID-19 workplace, expectations are changing. Regular listening sessions, such as skip-level interviews and direct team conversations, are invaluable. Leaders often don’t see front-line frustrations, and small grievances can become big if unaddressed. Listening is a two-way street that reveals both the opportunities to improve and the subtle signals about team morale.
3. Make Tough but Necessary Decisions Pleasing everyone isn’t feasible, and sometimes unpopular decisions are essential for the organization’s health. It’s vital to be transparent, meeting in person to explain the rationale behind tough choices. While not everyone will agree, they’ll appreciate the honesty and respect your commitment to the bigger picture. Remember, your role is to earn respect, not just be liked.
4. Promote Continuous Learning and Career Development A culture of continuous learning benefits everyone. Team members need to know their career paths within the organization. What steps and competencies are needed for advancement? We haven’t always excelled here at Goodwill, but we’re making improvements, including a dedicated learning and development role in 2025. When team members see a clear path and receive training to reach it, they’re more engaged and less likely to look elsewhere.
5. Celebrate Successes A simple “thank you” or a moment to celebrate success goes a long way. This area can be a struggle, especially for leaders focused on pushing forward. It’s not about caring less; it’s just about keeping up with the pace. Yet skipping recognition can derail morale. I rely on my senior team to remind me to pause and acknowledge successes, and I’m grateful for that support.
6. Prepare People for Their Next Role Many organizations hold back on developing team members because they fear losing them. This mindset is short-sighted. Talk with your team about their hopes and dreams for the future. Where do they want to be in two or five years? Investing in their aspirations makes them feel valued, and instead of losing them, they often stay longer. Training your team for their future is one of the best investments you can make.
7. Prioritize Fit over Convenience in Promotions Promoting someone simply because they’re “next in line” can lead to disappointment if they aren’t ready. Leaders must engage in tough conversations, ensuring they place “the right people in the right seats.” Promoting convenience over capability harms both the company and the individuals who aren’t set up for success. It’s a hard truth, but it’s essential for long-term growth.
8. Organizational Growth Can Sometimes Outgrow Current Talent Companies evolve, and sometimes outgrowing talent—especially in senior positions—is part of that growth. While some team members will grow with the company, others may not. Invest in your senior team, offering coaching, feedback, and resources. If a team member can’t align with the company’s trajectory, it’s in everyone’s best interest to help them transition to a role where they can thrive.

Embracing Healthy Turnover

Turnover, when guided thoughtfully, becomes a strategic asset that fuels innovation and progress. Leaders who foster an environment of support, transparency, and growth inspire their teams to reach new heights. It’s not just about keeping people—it’s about cultivating an ecosystem where everyone has the opportunity to flourish, evolve, and contribute to a greater vision either within your organization or elsewhere. Both can be a healthy option. By focusing on the growth of each individual, leaders can empower their teams to soar beyond expectations and embrace new challenges with confidence.

As John C. Maxwell wisely said, “A leader is one who knows the way, goes the way, and shows the way.” When we focus on building up others, we don’t just retain talent; we create a legacy of growth, resilience, and purpose. Embrace healthy turnover as a powerful tool for transformation, and together, let’s build organizations where people don’t just work—they thrive.

Soar, Don’t Settle!