What is characterized as dysfunctional turnover?

The departure of effective performers that the company would have liked to retain is recognized as dysfunctional turnover because it has a negative impact on the organization. This type of turnover reflects the loss of valuable talent and skills that contribute to the overall performance and success of the organization. When high-performing employees leave, it can disrupt teams, lead to knowledge gaps, and potentially reduce morale among remaining staff. Organizations strive to minimize this type of turnover as it can be costly both in terms of lost productivity and the expenses associated with recruiting and training new employees.

In contrast, other types of turnover, such as departures for personal reasons, due to relocation, or reaching retirement, may not necessarily indicate a failure on the part of the organization to retain key talent, as these outcomes can sometimes be anticipated and planned for.