Turnover in organizations has been steadily growing in recent years. But, what is turnover? In human resources management, turnover is the number of employees that a company has to hire to replace the ones who left during a 12 month period. In this article, we will learn more about its causes, consequences and the solutions we can set up to reduce turnover in organizations.
Elements which causes turnover
The most common causes of a high turnover are hard working conditions, lack of integration among employees and a lack of career perspectives. The collaborators need to feel that they can improve their work thanks to internal trainings and to seek a promotion inside his company. A lack of communication inside the departments, a lack of company attractiveness compared with competitors and a human resources mismanagement can also increase the turnover of the company.
Consequences on your business
The most important loss for your company when employees quickly leave the organization, is the skills and experiences developed in your company which can be transferred to your competitors. On the one hand, your organization loses the knowledges developed, on the other hand, it is a gain for the competitors.
A high turnover can have a financial impact on the company because significant and too frequent costs are involved in recruiting and training of new employees. Moreover the recruitment costs involved for employees who rapidly left the company also impact the financial statement.
But a high turnover does not only have financial consequences. It can also impact the employee morale when they have to learn knowing a new collaborator too often. Furthermore, these employee can interpret those departures as the sign that the company is in trouble and decide to leave it too before conditions get even worse.
How to reduce turnover
There are different solutions to reduce the turnover of your organization. The first one is to focus more on human work valorization. To achieve this goal you can, for example, offer a competitive compensation, specific advantages to your employees, to provide more flexibility by allowing them to work from home and retain employees by offering them career perspectives. The second one is to be as transparent as possible with the collaborators. A lack in this area can be harmful for the company and its employees. Finally, a HR manager who places the employee at the center of the HR preoccupations is necessary to improve management quality and to reduce turnover.
You also have to manage the human resources from the employee’s arrival until his departure or retirement. You can set up different simple actions to retain them like valuing skills and seniority, supporting proximity management, strengthening feedback, interactivity, trust, active listening,…
All these actions can help your company to reduce its turnover. It is important that the employees feel involved in the human resources process, that they are valued and listened inside their organization. It is still the best way to acquire the good skills in your company and to retain them.