What is optimal turnover?
A)It is the lowest turnover that a firm can achieve.
B)It produces lowest level of long-term productivity.
C)It produces the highest level of long-term business improvement.
D)It sees any employee turnover as a loss for the company.

Question

Quizplus · Accepted Answer

Optimal turnover refers to the turnover rate that leads to the highest level of long-term business improvement. This means that companies need to find a balance between retaining valuable employees and making room for new talent and ideas. High turnover can result in loss of institutional knowledge and skills, while low turnover may lead to complacency and lack of innovation. The optimal turnover rate varies by industry and company, depending on several factors such as business cycle, competitive environment, and workforce demographics.

What Is Optimal Turnover