Call me crazy, but I think turnover on your SAP team can be good.

Jack Welch agrees…

Sure, ask any HR consultant about the cost of turnover, and they’ll tell you that the true cost of turnover can be 2-3X’s the cost of that employee’s annual salary.

And I agree. Turnover’s expensive. You’ve got the the hard recruitment costs, decreased productivity and morale, training and on-boarding costs, lost institutional knowledge…

I could go one, but you get the point.

To make things even worse, a new study by Ladders has found that 67% of workers earning over $100,000 see themselves quitting in the next six months.

Think about that number for second… 67%. That is a full 2/3’s of your team who could see themselves (potentially) walking into your office and handing you a resignation letter in the next six months.

That’s a nightmare scenario for a lot of leaders.

So if 2/3’s your team will consider leaving in the next 6 months, and that the cost of turnover is 2-3X’s the amount of an employee’s annual salary, in an industry (tech) with the highest turnover rate out of any business sector (and that is verifiably true), it may seem like the sky is falling.

But know this. Turnover is good.

Or at least, the right turnover is good.

Executives are always sounding off about how bad turnover is, but is it really? I think they say this blanket statement because it’s just such widely-held, sacred cow belief that very few leaders are willing to publicly challenge.

I’ve always thought that sacred cows make the best burgers.

The way I look at it, turnover costs are significant, but they still pale in comparison to the cost a misfire can have on your team.

If Homer Simpson were on your team, would you really be upset if he were to walk in one day and hand you a resignation letter?

Admit it. There have been times in your leadership career where you’ve had certain employees who, if they handed you a resignation letter, you wouldn’t miss. In fact, you’d breath a sigh of relief, knowing that you could now work to replace them with a top-performer.

Take a lesson from one of my business idols, Jack Welch (of General Electric fame):

“The team that wins fields the best players. A leader’s job is to sweep away the action blockers, the change resisters, the process obsessives … these people are nothing more than self-appointed, self-righteous scolds. They drain energy,” Welch wrote in his 2015 book “The Real Life MBA.” Even if an employee isn’t in the bottom 10% of performers, know when they’re dragging others down.”

My message is simply this…your job as a leader is to hire the best people, and get out of their way.

…and the ones who want to jump ship? Unless they’re a top-performer, show them the door.