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Question: HWR is the second largest realtor in China. The company focuses on building customer relationships and pursues a growth strategy. The overall turnover rates at HWR office are 5 to 10 percentage points above industry benchmarks, ranging from over 40 percent for sales and operations to between 3 to 8% for professionals and management. Traditional turnover analysis suggests that HWR should be haemorrhaging money. Instead, the company substantially outperforms its competitors.
(a) How will HWR be able to outperform its competitors given its high turnover rates?
(b) What are the financial benefits and costs of applying HWR's turnover strategy?
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