What defines functional turnover?

Functional turnover refers to the exit of employees whose performance is below the expected standards for their roles. This type of turnover is considered beneficial for the organization because it allows for the replacement of lower-performing individuals with potentially higher-performing talent. By focusing on retaining high performers and allowing the departure of those who are not meeting performance expectations, organizations can improve overall productivity, morale, and effectiveness in their workforce.

In the context of the other options, while the departure of high performers can be disruptive, it does not fit the definition of functional turnover. Similarly, departing for better opportunities may indicate a need for the organization to improve its retention strategies, but it also does not align with the idea of functional turnover. Lastly, turnover due to organizational changes can be necessary and might involve a mix of performers, but this is more about restructuring than performance-related turnover. The crux of functional turnover lies in the performance quality of the employees leaving, making the departure of poor performers the defining characteristic.