#18a: Turnover loses not just the person but their knowledge.

Since organisational knowledge lies within its people, there is great hidden cost in layoffs and high turnover. Laid off staff take with them part of the organisation's learning; this partially offsets whatever expense is saved in salary cost.

An organisation with high turnover has both less opportunity and less incentive for individuals — and hence the organisation — to learn.


Related: 3d, 18