Most businesses define a certain level of turnover that is normal and
             acceptable if not even desirable. In many instances, a healthy exit of
             employees presents opportunities for phasing out unnecessary positions,
             hiring less expensive replacements and infusing innovation by obtaining
             employees with more current training and education. And, often the
             organization can consider more attractive staffing options such as
             outsourcing, the use of temporary employees and overtime that provide the
             ability to more cost efficiently accommodate cyclical labor demand caused
             by economic conditions, seasonality, etc. than do full-time workers.
             On the other hand, undesirable rates of attrition or the exit of
             needed employees can be extraordinarily expensive and unproductive. First,
             the cost of the exit can be expensive both in terms of separation and
             vacancy costs. There are administrative costs to process the employee's
             exit and productivity losses for the interval is takes to hire and train a
             replacement. Further, recruitment costs such as advertising, fees for job
             search agencies, time and money spent on interviews, sign-on bonuses and re-
             location fees easily add up to considerable sums of money. Highly
             specialized job functions may be difficult to acquire and a business may
             have to pay a higher salary for the replacement employee. Training is
             expensive and it may take some time for the new employee to acquire the
             company-specific intellectual capital that the previous employee learned
             after years of service with the company. Last, but not least, large
             amounts of unwanted turnover may negatively impact employee morale, causing
             a viscous cycle of even more turnover.
             In summary, a 100-percent retention policy is not beneficial to most
             organizations. Instead, businesses must make all efforts to retain the
             right employees while recognizing that the attrition of other employees is
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