If your employee turnover rate is high and employees don’t stay long, you are always rebuilding your company from scratch. Recruiting and training are expensive and getting people to know and trust each other and work well together is almost impossible.
A little employee turnover is good. Especially if they weren’t the right person in the first place, or if they are stuck, a drag on culture, or not growing with the position – especially in key roles. New employees bring fresh energy, skills, and perspective.
Assuming you hire well in the first place, the “goldilocks turnover rate” is a low one.
The last company that I worked had over a 100% turn rate in the 2 years that I worked there. In that 2 years, the company of 18 employees had 22 employees come and go. I was shocked to see that. The owner of the company came to me when he found out that I had mentioned the extremely high turnover rate to my helpers. He knew that he had a high turnover rate but didn’t seem to have a care in the world about it.