If you have worked in HR long enough, you will be very familiar with workforce metrics and the conversations that surround them. Few metrics attract as much attention as employee turnover.
When turnover rises, organisations want answers. Leaders look for patterns, review exit interview data and consider what may need to change. At the other end of the spectrum, long-serving employees are often viewed as evidence that everything is working well.
As a result, many organisations develop a simple view of workforce movement. High turnover is bad. Loyalty is good.
The reality is more complicated.
Retaining good people matters, but a workplace where nobody leaves is not automatically thriving. Equally, a resignation does not always signal organisational failure. Long tenure may reflect engagement and growth, but it can also reflect comfort, habit or a lack of alternatives.
Perhaps the better question is not how many people leave or how long they stay. It is whether employees continue to learn, contribute and create value while they are part of the organisation.
There are certainly situations where turnover should concern employers. If talented people are consistently leaving because of poor leadership, workplace conflict, excessive workloads or limited career opportunities, organisations need to pay attention.
However, not every departure belongs in that category.
Work has changed significantly. Few people now expect to spend an entire career with one employer. Career paths are often shaped by movement between organisations, industries and roles.
People leave jobs for many reasons that have little to do with organisational shortcomings. They relocate, pursue study, seek advancement or simply want a different experience. What may once have been viewed as disloyalty is now often considered a normal part of career development.
An employee can make a meaningful contribution, build valuable skills and leave on excellent terms. Their departure may simply reflect that they are ready for a new challenge.
In some cases, they may even return. The rise of the boomerang employee highlights that a resignation does not necessarily end the relationship. Sometimes it is simply a different stage of it.
One of the risks of treating turnover as inherently negative is that it overlooks the benefits workforce movement can bring.
Over time, workplaces naturally develop established ways of working. Processes become familiar and assumptions go largely unchallenged. While stability brings consistency, it can also make organisations less likely to question whether current approaches remain effective.
New employees often bring a different perspective. They draw on experiences from other organisations, industries and leadership environments. They ask questions that others may no longer think to ask and can identify opportunities that have been overlooked.
Importantly, workforce movement can also increase diversity of thought. Teams made up of people with different experiences, backgrounds and career journeys are often better equipped to challenge groupthink, consider alternative solutions and respond to change.
Someone who has worked in a different industry may approach a problem in an entirely different way. A new hire may identify an outdated process that everyone else has accepted as normal. Often, innovation comes from bringing together people who see things differently.
This does not mean organisations should welcome constant turnover, but some level of workforce movement can strengthen a team through fresh ideas, new perspectives and renewed energy.
Loyalty is widely viewed as a positive workplace characteristic, and often for good reason. Long-serving employees can provide stability, organisational knowledge and a deep understanding of customers, systems and culture.
The challenge is that tenure and engagement are not the same thing.
An employee may remain because they feel challenged, valued and committed to the organisation's success. Another may stay because the role feels comfortable, change feels risky or there are limited alternatives available.
From the outside, both employees appear equally loyal.
A long service anniversary tells us how long someone has stayed. It tells us very little about whether they are still growing, learning or contributing at their highest level.
This is why loyalty should not be measured solely in years of service. The more meaningful question is whether employees continue to develop and create value. Loyalty that grows alongside capability, curiosity and contribution is incredibly powerful. Loyalty driven purely by comfort or routine may be less beneficial for both the employee and the organisation.
There is also a risk that organisations romanticise loyalty without considering its broader impact. A workforce that never changes may retain valuable knowledge, but it can also become resistant to new ideas and different perspectives. The strongest organisations find a balance between experience and evolution.
Most organisations invest heavily in retention strategies which is understandable. Recruitment is expensive, onboarding takes time and replacing experienced employees can be disruptive.
The risk is that retention becomes the objective rather than the outcome.
Healthy organisations do not simply focus on keeping people. They create environments where employees can develop, feel connected to their work and contribute in meaningful ways. When those conditions exist, retention often follows naturally.
Attempting to retain employees at all costs can also prevent honest conversations about career aspirations. Some employees may have outgrown their role or be seeking experiences that the organisation cannot provide.
In those circumstances, supporting an employee's next step may be a better outcome than persuading them to stay.
A resignation handled well can preserve relationships, strengthen an organisation's reputation and create future opportunities. Former employees often become advocates, customers, referral sources and in some cases, future employees.
Rather than focusing solely on retention rates, organisations may be better served asking different questions.
These questions provide a far richer picture of organisational success than tenure figures alone.
The strongest organisations are not necessarily those where nobody leaves. They are the organisations where people grow, contribute and leave with positive experiences to reflect on.
Because while turnover is not automatically bad and loyalty is not automatically good, both should contribute to a healthy, productive and sustainable workplace where people and organisations continue to evolve.
And if someone's goal is to stay long enough for the gold watch, that is certainly something to be applauded. Others may choose a career that takes them in different directions, across employers, industries and opportunities. Neither path is inherently better than the other. The real measure of success is not the watch itself, but whether people continue to learn, contribute and create value along the way.
For assistance with your workplace matters, members of Australian Industry Group can contact us or call our Workplace Advice Line on 1300 55 66 77 for further information. Australian Industry Group has an extensive range of training courses to support employers on their learning and development journey.
Georgina is Senior HR Content Editor – Publications at Australian Industry Group. With more than 25 years' experience in human resources and leadership, she has demonstrated her expertise across a diverse range of industries, including financial services, tourism, travel, government, agriculture and HR advisory. She is an accomplished writer and editor who creates engaging content that educates and informs. Georgina's writing includes a variety of formats, such as blogs, articles, policies, templates and guides.
