A company discovers that a poorly performing factory has a significant level of voluntary turnover compared to other locations. The company is not sure if it is a symptom of poor management or something else. Is there an optimal voluntary turnover rate and what are the costs and benefits of it?

As discussed in the Manager’s Notebook, “Voluntary Turnover in China,” voluntary turnover is a problem faced by organizations in China. This turnover is particularly a problem in managementlevel positions and in areas such as sales, marketing, and human resources.
The issue is expected to continue, even though the growth in the Chinese economy may be slowing.
Facing voluntary turnover is a problem in more areas than China. For example, companies in India face high levels of voluntary turnover. The common element to the level of voluntary turnover is a demand for labor that exceeds the supply. The demand creates job opportunities for the too-few employees who have the desired competencies.