Staff turnover: reasons and how to reduce it
Posted: Sun Dec 22, 2024 6:17 am
What are we talking about? Employee turnover is a normal phenomenon. It does not happen that employees, once hired, never quit, as people tend to search for better working conditions. However, a high turnover rate signals serious problems in the company.
What to do? To reduce staff turnover, it is necessary to analyze the situation: whether the salary level corresponds to the market average, whether HR employees make mistakes when recruiting personnel or managers in managing the team. Only after a thorough analysis can measures be taken to reduce the staff turnover rate.
In this article:
What is staff turnover in simple terms
Types of staff turnover
8 Main Reasons for Employee Turnover
The dangers and benefits of staff turnover
Step-by-step calculation whatsapp number australia of staff turnover
Example of calculating the turnover rate
How to Reduce Employee Turnover
Frequently Asked Questions About Employee Turnover
In-Depth Guide: How to Cut Your Ad Costs by 25% with Artificial Intelligence
Download for free
What is staff turnover in simple terms
There is such a concept as "staff turnover". It is used by employees working with personnel. The indicator shows how often people leave their place of work. If the staff turnover rate is high, management needs to take action. Low values indicate negative trends. Companies carefully monitor the causes and possible consequences of staff turnover.
What is staff turnover in simple terms
Source: shutterstock.com
How high turnover can affect the financial stability and development of a company:
the budget allocated for new employees is increasing. This includes market monitoring, searching for new employees, training them, and support at the beginning of their careers;
high staff turnover leads to people starting to leave the company following the old staff, meaning layoffs will be constant, and there will be no one to train newcomers;
the departure of professionals affects the company's work, because they are often replaced by people who do not have the necessary level of competence, which reduces overall performance, the quality of services provided and sales accordingly;
Employee turnover can help strengthen competitors, because they accept those who left and provide them with the conditions that the old company could not provide. The departed employees help develop competitors due to their knowledge of the previous company.
A specialist who is focused on a quick exit begins to work worse. He spends time and energy on searching for new offers, rejects complex tasks in order to save resources, and is engaged in training his future replacement instead of doing the main volume of work.
But the lack of regular turnover can also contribute to the slowdown of some processes in the company. Rigid principles and a lack of fresh ideas from new employees prevent the company from developing.
What are the advantages of turnover:
If an ineffective and burnt-out employee was fired, a new one will be able to quickly and effectively join the work processes, complete tasks with enthusiasm and on time. This will increase productivity and improve performance.
If there were mass layoffs, the manager can think about the principles of the company's work, reconsider the attitude towards employees, motivate them in new ways, including financial ones. If the right strategy is chosen, the changes will benefit the company.
Fresh personnel will bring new, sometimes unexpected ideas and solutions. This process contributes to the development of the company and the revision of old principles.
From the above it follows that staff turnover should be average, without a strong bias in one direction or the other.
An HR specialist monitors the normal development of personnel; in large companies there are entire departments that calculate turnover rates and help newcomers adapt.
What to do? To reduce staff turnover, it is necessary to analyze the situation: whether the salary level corresponds to the market average, whether HR employees make mistakes when recruiting personnel or managers in managing the team. Only after a thorough analysis can measures be taken to reduce the staff turnover rate.
In this article:
What is staff turnover in simple terms
Types of staff turnover
8 Main Reasons for Employee Turnover
The dangers and benefits of staff turnover
Step-by-step calculation whatsapp number australia of staff turnover
Example of calculating the turnover rate
How to Reduce Employee Turnover
Frequently Asked Questions About Employee Turnover
In-Depth Guide: How to Cut Your Ad Costs by 25% with Artificial Intelligence
Download for free
What is staff turnover in simple terms
There is such a concept as "staff turnover". It is used by employees working with personnel. The indicator shows how often people leave their place of work. If the staff turnover rate is high, management needs to take action. Low values indicate negative trends. Companies carefully monitor the causes and possible consequences of staff turnover.
What is staff turnover in simple terms
Source: shutterstock.com
How high turnover can affect the financial stability and development of a company:
the budget allocated for new employees is increasing. This includes market monitoring, searching for new employees, training them, and support at the beginning of their careers;
high staff turnover leads to people starting to leave the company following the old staff, meaning layoffs will be constant, and there will be no one to train newcomers;
the departure of professionals affects the company's work, because they are often replaced by people who do not have the necessary level of competence, which reduces overall performance, the quality of services provided and sales accordingly;
Employee turnover can help strengthen competitors, because they accept those who left and provide them with the conditions that the old company could not provide. The departed employees help develop competitors due to their knowledge of the previous company.
A specialist who is focused on a quick exit begins to work worse. He spends time and energy on searching for new offers, rejects complex tasks in order to save resources, and is engaged in training his future replacement instead of doing the main volume of work.
But the lack of regular turnover can also contribute to the slowdown of some processes in the company. Rigid principles and a lack of fresh ideas from new employees prevent the company from developing.
What are the advantages of turnover:
If an ineffective and burnt-out employee was fired, a new one will be able to quickly and effectively join the work processes, complete tasks with enthusiasm and on time. This will increase productivity and improve performance.
If there were mass layoffs, the manager can think about the principles of the company's work, reconsider the attitude towards employees, motivate them in new ways, including financial ones. If the right strategy is chosen, the changes will benefit the company.
Fresh personnel will bring new, sometimes unexpected ideas and solutions. This process contributes to the development of the company and the revision of old principles.
From the above it follows that staff turnover should be average, without a strong bias in one direction or the other.
An HR specialist monitors the normal development of personnel; in large companies there are entire departments that calculate turnover rates and help newcomers adapt.