Six Signs That You Should Run — Not Walk — From Your New Job is an article I easily remember reading once over the last couple of years. Kate Lorenz provides observations that a new employee can use to perform a quick evaluation of a company. These observations can also be useful to seasoned employees. In her article, Lorenz brings up high employee turnover. Being one of a couple of individuals with the most seniority is not a problem. There is a problem when seniority is gained at an alarming pace. Increasingly high turnover should be a significant hint that the company is no longer a great place to work, and witnessing high turnover should encourage action.
The moment that a better opportunity is made present is the best time to act on it. If not simply for the benefit of the individual, it should be done purely to promote good economic principles. These principles strive for the optimal allocation of limited resources, such as a worker’s time and skills. Employees, not only consumers, determine the fate of companies. Like consumers, employees are drawn to great companies and help them secure a good position in the marketplace. Good companies keep good workers, which develop good products or services, and draw good customers who pay good money that can be used for good worker compensation to promote good business growth. Less than good companies do not experience such a great positive-feedback cycle and ultimately perish. The economics are that simple.