Do you know what staff turnover is? How does it affect your teams and employees? The staff turnover not only affects your business and the performance of your workers, but also influences the company culture and even your brand.

What is staff turnover?

When a worker arrives or leaves a company, we say that there is turnover. If one job (or several) is deserted, we say that there is a high turnover rate and it is important to understand the causes and seek a permanent solution. It is fundamental to consider how many people have left the company in a given period. Obviously, those who have retired do not count, but those who have found another opportunity or those who were not happy with their work. It is essential to analyze the rotation rate on a regular basis.

What are the types of staff turnover?

It is important to know that there are two types of staff turnover and that each of them can have its own causes:

• Volunteer staff rotation

It occurs when workers quits voluntarily. This may be because they have found another higher position or just another position that convinces them more. Each case is particular, but it is very important to analyze the causes to know if something is not working, as it should; the compatibility of the team, the company culture, the benefits offered to the employees, growth possibilities, etc.Many of the causes of voluntary staff turnover have to do with the image that the company gives its employees. When workers are happy with their day-to-day life, they feel valued and do the work they are supposed to do for their job, there is less chance of them leaving.Therefore, if you find that some employees decide to take another opportunity or directly stop working at the company, it is time to consider what the problem may be, and think of a solution to retain employees.It has to be taken into account if it is a root problem, such as hiring people not suitable for the organization, who do not share the same values ​​or do not feel motivated by the purpose of the company.

• Involuntary staff rotation

It is when employees leave the organization without the initiative of the workers themselves, but of the company. This may happen through a restructuring of the workforce or an unfavorable evaluation of their work, but it is not a worker’s decision. It is also important to analyze this type of rotation as it may indicate that there are problems in the template or in the selection processes

Most common causes of staff turnover

When analyzing the causes of the employees’ progress, it is necessary to analyze each particular case, but they must also analyze the general aspects of the company that can carry out said rotation. These are some of the most common causes:

  •  Poor work supervision

Sorting the work hierarchically is a way to control the performance of the company and detect when something is not going as expected. Supervisors are those who analyze the work together and detect problems or possible deviations. When there is inadequate supervision, problems may arise with employees or faults that may result in a dismissal. It is best to be clear about the work of each one to be able to focus on personal goals and, above all, company and team goals.

  •  A bad work environment

If the relationship between colleagues is not good, employees will not feel comfortable going to work. Disputes between colleagues or with bosses are a reason for labor turnover, so you have to create a healthy work environment that encourages personal growth. The collaborators spend more than 30% of their time at work, and being at ease is vital. Paying attention and nurturing the company culture will help create a good working environment.

  •   The purpose of the company does not fit

Now more than ever, employees seek to feel identified with the purpose of the company in which they work. To give a clear example, if you are a person who fights against global warming, you would like to work in a company that fights for the environment, otherwise you will not mind leaving at the slightest opportunity.

  •  Lack of personal and professional growth

Those workers who are in a company where they cannot fulfill their aspirations, in which they do not feel fulfilled or are not growing professionally, can get tired and look for another opportunity. If they do not offer them a job that motivates them and makes them grow as professionals, the company is in danger of looking for a better opportunity.

  •  An unfair salary

If employees have another opportunity, where the salary is higher and there are no other aspects to stay for, such as the purpose of the company, benefits or affinity with colleagues, they will probably leave.

  • An inappropriate selection process

When the profile of the worker does not fit in the job, in the culture of the company or with the values, it may be that the most appropriate solution for the company and employee is the dismissal, and this means a significant loss of time and money. It is essential that the selection process is organized and focused on the ideal candidate, taking into account not only the functions but also the culture and purpose of your company.

The consequences of high turnover

Once we have seen the possible causes that can lead to staff turnover, we will analyze the consequences and all that this entails taking into account the development of the company and that workers. The consequences of a high turnover rate are;

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  • Changes in productivity

Labor turnover affects the company’s productivity in different ways. For example, a person leaving the company involves opening a selection process to find the ideal candidate for their position. This process can take days, weeks or even months. In addition, the new employee has to learn and take in practice the dynamics; this will reduce productivity the first days of their incorporation. Therefore, it is very important to retain employees and thus avoid drastic changes in productivity.

  • Changes in the team

The rotation of personnel not only affects the company as a business, but also leaves a mark on the employees as they lose one of their colleagues. Moreover, regain the pace of the previous work environment will take time.

  • The image of the company and employer brand is affected

If the talent that is interested in working in the company sees that there is a high turnover of staff, a bad impression

of the company will be taken and therefore the employer brand will be affected. This could make very interesting and valuable profiles for the company decide not to sign up for the offers. Showing that the company is a good place to work and being transparent with talent is a great tactic to undo this effect.

  • Associated costs

The costs of high labor turnover can be very high. It is necessary to take into account that there is not only the cost of possible dismissal in the case of involuntary rotation, but also of the new selection process and a new training for the worker

Do you know how to calculate the turnover rate?

It is simple; the staff turnover rate measures the relationship between people who join the team and those who leave. That is, the percentage of high and low in relation to the number of employees in a given period. Here is an example: Imagine that there are 200 workers in your company, and that in the last year 20 new people have joined, and 10 have left. The turnover rate would be ((20-10) / 200) * 100. It gives us 5%. How to interpret the results:

Low index: If it gives a low result, it can mean that you are doing a great work at gaining the loyalty of your employees or that your staff is at ease. If it is too low or directly 0% you should think to attract and hire new people to give a new air to both your business and your team.

High index: If the effect is the opposite, the consequences we mentioned above will occur, such as decrease in productivity or increased costs, and this could be a problem for the company and the team.

How to minimize staff turnover

The key is in an efficient management of the selection processes. It is important to hire the ideal candidate and avoid that the selection of profiles is incorrect, it is necessary to make successive processes until finding the worker that fits perfectly. Hiring the wrong candidate would mean a waste of time and money for your company, so keep in mind the purpose of your company, the talent you already have inside and the culture you want to achieve and maintain.

In Motiv we are convinced that the salary is not enough to attract and retain the best talent. So what do you have to do to retain your employees? Now days, the purpose of a company and its rationale are determining factors. Think that everyone has reasons to work in a particular company at a time of their life, and that not only the salary or growth opportunities. Today, more than 50% of the candidates think the job of their dreams has to be motivating.