Which method is typically cheaper for organizations: low turnover or high turnover?

Organizations benefit financially from low turnover because it generally leads to reduced costs associated with hiring, onboarding, and training new employees. When turnover rates are high, the organization incurs substantial expenses related to recruiting replacement workers, training them, and potentially losing institutional knowledge that experienced employees bring.

Low turnover, on the other hand, allows organizations to maintain a stable workforce. This stability not only saves money in recruitment and training costs but also enhances employee morale and productivity. Employees who stay longer often develop better skills, can mentor newer workers, and foster a strong company culture, contributing positively to the organization's success. Therefore, the cheaper method for organizations, in terms of overall costs related to employee turnover, is low turnover.