The relationship between turnover and organizational effectiveness is not simple. It is often assumed that the lower the turnover rate, the more effective the organization is likely to be. Turnover is expensive. Replacing an employee can cost at least five times his or her monthly salary (Macy and Mirvis 1976). However,not all turnover is harmful to organizational effectiveness. Organizations may actually profit from losing poor performers. In addition,if replacement costs are low, as they may be in unskilled jobs,it can be more cost effective to keep wages low and accept high turnover. Thus,the effect of turnover depends on its rate, the employees affected, and their replacement cost.