Employee Turnover & Job Security

CORE CONTENT | 1.1 min read

Turnover refers to the rate at which employees leave a company and are replaced. High employee turnover can be a red flag, indicating potential issues within the company, such as poor management, lack of growth opportunities, or an unsatisfactory work environment. Entering such a situation comes with uncertain job security. Low turnover, on the other hand, often reflects general worker satisfaction.

Of course, some roles may see constant replacements for innocuous (and even positive) reasons. Perhaps there is an entry-level role that sees its hires quickly promoted or offered better opportunities. Many internships are short-term by design and see a new hire every few months. In other cases, newly merged companies or companies experiencing industry shifts may have seen a large but unusual spike in employee turnover (e.g., layoffs). This can still be a reason to be weary, but it is different than a company seeing consistent resignations due to toxic workplace culture.

There are a few ways to assess a company's turnover rate and job security. You can start by doing basic research on the company's history and reputation. Look for news articles, employee reviews, and industry reports that might shed light on the question. You can also ask directly during the interview process. Ask questions about the average tenure of employees, opportunities for growth and development, and the reasons for the departure of the previous person in the role. Additionally, inquire about the company's prospects, as these can be indicators of job security. If you know someone who already works for the company, you may be able to get a clearer picture from them.

REAL WORLD EXAMPLE | 0.4 min read

Mason, concerned about Acme Corporation's high turnover, decided to take a proactive approach. He reached out to current and former employees on professional networking platforms and engaged in conversations to gain insights into the company's work culture. After gathering opinions and experiences, he conducted online research, reading reviews and company information. Mason was able to narrow down the possible causes to those of work-life balance and lack of community. Feeling that these aspects were not priorities of Mason’s, being a new college graduate with no kids and seeking a remote position, he decided to proceed with his job application to Acme.

KEY TAKEAWAYS | 0.1 min read

• The rate at which employees leave a company may be a signifier of the company’s health or culture and should be considered when considering a job at that company