From our market experience, we’ve come across companies with alarmingly high employee turnover rates. At first, management often tried to justify it by claiming employees were “not committed,” “underperforming,” or that “no one is indispensable.”

But in reality, high turnover is not always an HR issue. Sometimes, it’s a clear indicator of systematic administrative corruption or even deliberate failure that management tries to cover up.

Case Study

In one company where we implemented an ERP system, the data revealed an abnormally high turnover:

  • Management deliberately rotated employees to hide their own failures.

  • Talented employees never stayed long, which meant projects were rarely delivered on time or with quality.

  • Some employees didn’t even receive their full dues, under the excuse of “poor performance,” despite the absence of clear workflows or fair processes.

  • The employees who remained were often those willing to settle for the minimum, resulting in near-zero productivity.

Instead of addressing the root causes—corruption, lack of fairness, and administrative chaos—the company treated turnover as a quick fix by constant rehiring.

The result? A vicious cycle:
Corruption → Employee turnover → Lack of achievements → Negative market reputation → Difficulty attracting talent → More corruption.

How to Spot a Toxic Company Through Turnover

  • Consistently high turnover rates over years, not just temporarily.

  • Frequent departures of top performers and key talent.

  • Negative reputation among candidates and ex-employees.

  • Management constantly blaming staff or searching for scapegoats instead of addressing real issues.

Advice for Employees

If you’re considering joining a new company:

  • Research the company’s reputation among current and former staff via professional platforms and industry networks.

  • Ask during interviews about turnover rates and career development plans. Vague or defensive answers are usually red flags.

  • Watch for repeated job postings for the same role—it’s often a sign of structural problems or a toxic environment.

  • Don’t focus solely on salary; consider growth opportunities, fairness, and work-life balance.

Advice for Companies

If your company is struggling with high turnover and truly wants to succeed:

  • Collect and analyze accurate data from exit interviews scientifically.

  • Invest in leadership development, since most resignations are linked to direct managers.

  • Establish internal fairness: transparent salaries, objective performance reviews, and equity.

  • Provide clear career paths: training, promotions, and performance-based rewards.

  • Acknowledge the problem early—continuous rehiring is only a band-aid that accelerates reputation damage.

Conclusion

Employee turnover is more than just a number in an HR report—it’s a vital indicator of a company’s DNA.

  • For employees: awareness of this metric can protect your career from toxic workplaces.

  • For companies: acknowledging the problem and addressing it systematically is the only path to long-term sustainability and success.

Healthy companies treat turnover as an alarm for growth. Corrupt companies, however, use it as a smokescreen to cover failure—until they collapse from within.