What is the concept of turnover?

In this article we will make you aware about Strategies to reduce employee turnover and employees turnover reduction.

Rotation happens when an employee is dismissed from the company and another professional takes his place to make up for the shortage of labor.

The employee’s departure does not necessarily have to be due to a resignation, but also by retirement , dismissal with or without just cause , relocation of the employee within the company, among other forms of dismissal from the position the employee occupied before.

Such turnover is also known as the turnover rate , and it is an extremely important metric for the entire company.

In short, turnover is nothing more than the flow of hiring and firing people in a company.

What can motivate the increase in the turnover rate?

There are a number of factors that can negatively impact the company and lead to increased employee turnover.

Understanding these factors and devising strategies to avoid them within the organization can represent the maintenance of low turnover rates. In this section, we will give some examples of what can drive an increase in internal turnover.

• Remuneration below the market average: a professional who receives a monthly salary whose value is lower than the average practiced by the rest of the market may feel unmotivated, and there are great chances that this employee will seek new job opportunities in another company.

• Benefits incompatible with needs: in addition to the salary received by workers, it is important that the company offers labor benefits compatible with the needs of its employees. After all, inputs such as food vouchers , transportation vouchers , health insurance, pension plan, life insurance , etc., are very important benefits and advantages for professionals.

• Lack of investment in employees: not only labor benefits, but all forms of investment in the well-being and development of employees are ways to retain talent in a company. When professionals feel that the organization does not care about its human capital , the tendency is for teams to become unmotivated and look for new environments in which they are valued.

• Lack of recognition: As we said earlier, many workers want to be recognized for their work and there are several ways to do this. If workers feel that their efforts are not being recognized, they are likely to be frustrated and this can motivate them to look for other job opportunities and professional development.

• Problems with the work environment: it is normal that there are certain differences between co-workers, after all, each one has its own behavioral profile . However, such differences can become disagreements when respect is not practiced among workers, which causes fights and tensions in the work environment. The same can happen in relation to the company’s leadership, which can feed a climate of tension between the teams. When this happens frequently, it is very common for employee turnover to increase, as few can handle hostile work environments.

• Few opportunities for growth: when professionals feel that they are stagnant in their careers and that the company offers few opportunities for professional growth, the tendency is for dismissals to increase, as workers have the desire to develop professionally and grow in the job market.

How does employee turnover harm companies?

We mentioned earlier that employee turnover, in and of itself, is not the core issue. The big problem is when this turnover is very high in the company, as the entry and exit of employees all the time starts to cause difficulties for the business.

Among the main problems that a high rate of employee turnover can cause are:

• Increased expenses

When an employee is dismissed from the company, there is a series of severance payments that must be paid by the organization, such as the salary balance for the days worked, prior notice (worked or indemnified), the balance of vacation or vacation due (plus ⅓ of the value), proportional 13th salary , among other accounts related to the professional’s departure.

These sums alone can represent a large cost that the company will have to bear to secure the worker’s rights, not to mention all the expenses that will be made for the selection and recruitment process that will have to be carried out to replace the worker.

When made once in a while, such expenses can be allocated to the company’s budgets and are often even expected throughout the year. But if this type of situation is recurrent, the organization may find itself surrounded by expenses that could have been avoided.

• drop in productivity

When a worker leaves the company, it is necessary that their activities be taken over by another professional. This can happen through the hiring of a new employee or the distribution of tasks among the remaining team members in the company.

In any case, the company will go through a period of falling productivity: if a new employee takes over the tasks, it will take time to adapt to the new job and this can mean that, during this period, the new employee will not be as qualified. for the role as the one who left the company.

At the same time, if tasks are reassigned among the rest of the team, there is a possibility that employees will become overwhelmed with new demand being added to routines, which tends to cause more fatigue and decrease productivity. Both scenarios can represent a loss in the activities and results of the company as a whole.

• Damage to the company’s image

It doesn’t take long for a company’s high employee turnover rates to be known in the job market, because the greater the flow of entries and exits, the greater the chances that this movement will be noticed by other organizations and by the professionals themselves.

This is very harmful to the company’s image, as many may think that there are internal problems related to leadership, growth opportunities, organizational culture, work environment and even business performance.

All these factors can severely impact the company’s credibility in the job market and customers.

• Loss of internal knowledge

With a high flow of employee turnover, there is a tendency for part of the company’s intellectual capital to be lost over time.

After all, if the company has a group of talented professionals who have been improved in their tasks, the departure of these employees undoubtedly represents a loss of knowledge that was already “inherent” in the work performed.

This loss, consequently, results in financial loss with the payment of severance pay and the need to carry out new selection processes, which forms a system of losses to the company that feeds back.

How can employee turnover be reduced?

Each company must assess its internal situation to design talent retention strategies, as each business and each organization chart allows for a different approach.

In this section, however, we’ll give you some tips on what can be done to identify the causes of turnover and decrease turnover.

• Invest in organizational climate surveys

The first step may be to identify the problems that generate the turnover. Organizational climate surveys can be great allies in this investigation, as they allow the levels of satisfaction in relation to different company scenarios to be identified.

For example, the survey can include questions about company leadership, corporate benefits, workflows, team relationships, and more. The more fronts of the relationship between the employee and the company are covered by the survey, the greater the chances of identifying the source of the problems.

Having a transparent, honest and anonymous communication channel with employees can result in the collection of valuable information for the creation of strategies that avoid employee turnover.

• Invest in training

A company that is concerned with the constant development of its employees tends to have professionals who are better prepared and more engaged with their work.

Investing in employee training is a great way to show that the company cares about the growth of professionals and, at the same time, ensures that workers are always trained and up to date.

Doing research to identify employee areas of interest is a great way to understand the best training and development opportunities that can be offered.

In addition, when the company develops a culture of education, the tendency is that all employees who are hired are already inserted in a learning reality common to all, which facilitates integration with new tasks and with the team itself.

• Carry out meticulous selective processes

It is important that the entire selection and recruitment process is done carefully to avoid hiring professionals who do not correspond to the company’s needs at that time. Assessing whether the candidate fits both the job requirements and the organizational culture is essential to avoid a possible turnover.

• Invest in current personal management solutions

There are a number of solutions aimed at the Personnel Department that facilitate the implementation of routines that avoid sudden increases in employee turnover rates.

Many companies have satisfaction survey systems that are carried out completely anonymously, ensuring privacy and encouraging honesty of employees at the time of climate surveys, for example. Others already have behavioral profile mapping solutions that allow recruiters to assess whether a candidate has the psychosocial skills expected for the position.