Business – 2.1 HRM – Workforce planning | e-Consult
2.1 HRM – Workforce planning (1 questions)
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Low labour turnover tends to produce a stable workforce, which can have both positive and negative effects:
- Organisational culture: continuity reinforces shared values, strong team cohesion, and a clear corporate identity.
- Knowledge retention: institutional memory is preserved, aiding consistent service quality.
- Innovation: a homogeneous, long‑standing staff may become complacent, reducing the influx of fresh ideas and limiting creative problem‑solving.
- Risk of stagnation: without new perspectives, the business may struggle to adapt to market changes.
Thus, while low turnover can strengthen culture, it may also dampen innovation unless the firm actively encourages continuous learning and external input.