Why I'm Happy When Our Employees Leave: A Startup CEO's Perspective on Employee Turnover

Discover why this startup CEO celebrates employee departures and how high turnover can actually benefit your company's growth and culture.

This article was originally published on October 1, 2018 via LinkedInฉบับภาษาไทย

Employee turnover is often viewed as a business failure, but what if I told you that seeing your best people leave could actually be a cause for celebration? As a startup founder who recently watched eight employees—nearly a quarter of our team—walk out the door, I've learned that employee departures can be powerful catalysts for growth, innovation, and organizational strength.

The Reality of Startup Employee Turnover

Last month, our company experienced significant employee turnover. Some team members had been with us for nearly three years, while others stayed just three months. During our final all-hands meeting, emotions ran high—mine included. But after the initial shock wore off, I realized something unexpected: I was genuinely happy about the situation.

Here's why every startup leader should embrace employee turnover as a natural part of business evolution.

1. It's About Their Career Growth, Not Your Company Retention

Accelerated Career Development in Startups

Early-stage startups offer something traditional companies can't: accelerated career advancement. The endless tasks and high-pressure environment create unique opportunities for rapid skill development and career progression.

Take Tika, for example. She started in our food operations team, transitioned to marketing where she managed customer communities, and evolved into our primary copywriter. Within months, she landed a UX copywriting role at Traveloka, one of Indonesia's four unicorn companies.

Key insight: When employees leave for better opportunities, it validates your company's ability to develop talent. You become part of their success story, not just their employment history.

Building a Talent Development Reputation

Companies that consistently produce high-performing employees who succeed elsewhere build powerful reputations in the job market. This reputation attracts ambitious candidates who see your company as a stepping stone to their dream careers.

2. Employee Turnover as a Fitness Test for Startup Culture

Separating Trend-Followers from True Believers

The startup ecosystem attracts two types of people:

  • Those genuinely excited about the mission, learning opportunities, and entrepreneurial experience
  • Those drawn by startup hype and trending workplace culture

High turnover helps identify and retain the right people. The startup journey includes inevitable ups and downs that require mental resilience and unwavering belief in the mission.

The Startup vs. Tech Company Misconception

Many job applicants confuse startups with established tech companies. They expect:

  • Structured mentorship programs
  • Clear job descriptions
  • Predictable career paths
  • Corporate-level benefits and stability

When these candidates leave early, they're self-selecting out of an environment where they wouldn't thrive. This saves both parties time and resources.

3. Turnover Creates Opportunities for Strategic Reflection

Forcing Process Evaluation

Every departure triggers a company-wide reflection period. We ask critical questions:

  • Is this role still necessary?
  • Can we approach these responsibilities differently?
  • What processes need improvement?

Most of the time, we eliminate redundant positions and redistribute responsibilities more efficiently. This continuous optimization keeps us lean and agile.

Staying Ahead of Disruption

If AI and automation will eventually disrupt traditional roles, proactive companies should disrupt themselves first. Employee departures provide natural opportunities to reimagine workflows and embrace technological solutions.

4. Understanding the Root Causes of Employee Departures

Honest Culture Assessment

Regular turnover forces leadership to examine company culture critically:

  • Are we providing competitive compensation?
  • Is our work environment engaging and challenging?
  • Do employees feel valued and heard?

No company is perfect. These moments of introspection help identify and address systemic issues before they become major problems.

Implementing Feedback-Driven Improvements

Each departing employee provides valuable feedback about their experience. We've implemented numerous policy changes and cultural improvements based on exit interview insights.

5. Building an Extended Network of Brand Ambassadors

Creating Your "Extended Family"

Departing employees don't have to become strangers. We maintain relationships with former team members, creating a network of external brand ambassadors who continue supporting our mission from different companies.

The Power of Alumni Networks

Our former employees now work across various industries—food, travel, logistics, and technology. They become:

  • Partnership facilitators
  • Customer referral sources
  • Talent acquisition channels
  • Industry intelligence providers

The business world is smaller than you think. Today's departing employee might become tomorrow's strategic partner or client.

6. Raising the Bar Through Strategic Hiring

The Amazon "Raising the Bar" Philosophy

Jeff Bezos taught Amazon employees to "always hire someone better and smarter than yourself." This philosophy ensures continuous organizational improvement.

Every departure creates an opportunity to upgrade. When we replace team members, we look for candidates who bring:

  • Fresh perspectives
  • Enhanced skill sets
  • Different industry experiences
  • Higher performance standards

Welcoming New Perspectives

In the past three months, we've hired 26 new team members. Each brings unique viewpoints that challenge our existing processes and push us toward innovation.

The Hidden Benefits of High Employee Turnover

1. Cost Optimization

Regular turnover prevents salary inflation and benefit escalation that can strain startup budgets.

2. Cultural Renewal

New employees bring fresh energy and prevent organizational stagnation.

3. Skill Diversification

Different backgrounds and experiences create more robust problem-solving capabilities.

4. Market Intelligence

Employees from various companies share industry insights and best practices.

What We Can't Offer (And Why That's Okay)

As a startup, we acknowledge our limitations:

  • Competitive salaries compared to established corporations
  • Comprehensive benefits packages
  • Job security guarantees
  • Structured career progression paths

But what we can offer is invaluable:

  • Accelerated learning opportunities
  • Direct access to leadership
  • Meaningful impact on company direction
  • Entrepreneurial skill development
  • An experience of a lifetime

Conclusion: Embracing Employee Turnover as Growth Strategy

Employee departures shouldn't be viewed as failures—they're natural parts of organizational evolution. When people leave your startup, celebrate their growth, learn from their feedback, and use the opportunity to strengthen your company.

The goal isn't to keep every employee forever. The goal is to create an environment where talented people can grow rapidly, contribute meaningfully, and move on to bigger opportunities when they're ready.

Yes, I miss the team members who've moved on. But I'm excited about the fresh perspectives our new hires bring and the continuous improvement their predecessors made possible.

Ready to build a career-accelerating startup culture? Visit our careers page to learn why working with us might be the experience that transforms your professional trajectory.

Casper Sermsuksan

Head of kuFamily | Founder of SEA Bridge

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