by: Peterson Loftin
In the short term, turnover is decidedly negative. As the separation date draws closer, productivity decreases at a steady rate. The ramp down process begins as soon as 3 months before separation, with productivity dropping as low as 40% during this period. Since cost remains the same while productivity decreases, employers are getting less for their money as an employee ramps down. But turnover is not always bad. The key to finding value in the turnover process is finding a replacement whose productivity is higher than the departing employee. Although a ramp up period exists, the new hire will eventually exceed the old hire in baseline productivity, making the transition a net positive.
