Business – 2.1 HRM – Workforce planning | e-Consult
2.1 HRM – Workforce planning (1 questions)
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Both extremes of turnover influence competitive advantage in distinct ways. The table below outlines the main effects:
| Turnover Level | Potential Advantage | Potential Disadvantage |
|---|---|---|
| High | Fresh skills and ideas can be introduced quickly, allowing rapid adaptation to market trends. | High recruitment and training costs, loss of tacit knowledge, and possible damage to brand reputation. |
| Low | Strong brand loyalty, deep organisational knowledge, and consistent service quality enhance reliability. | Risk of complacency, reduced innovation, and difficulty responding to changing consumer demands. |
In practice, a balanced turnover rate—enough to inject new talent while retaining core expertise—generally provides the most sustainable competitive edge.