Translated from Português (Brazil) • View original Talking a little about company management, there is a term called Turnover that measures the company's turnover rate. We can say that it is a metric that indicates the level or percentage of employees who leave and enter an organization in a given period. Many companies go through this situation and still don't know how to deal with it because they don't have a good strategy. We know that a good professional doesn't tend to choose to work in a company that can't keep its employees for a long time. Let's understand a little more about this subject.
High turnover rate and its consequences
It is normal and healthy to a certain extent to have a level of turnover. But a high rate can indicate management problems in the company and have consequences. Do you know what the main causes of turnover are? According to research, we can cite the following as main causes: - Poor management of the company; - Job description that differs from what is asked of the employee; - Inadequate infrastructure and lack of resources; - Remuneration incompatible with the job market; - Lack of professional motivation; - Not offering adequate training and not giving feedback with a certain frequency; - Offering poor leadership, where employees do not feel comfortable exposing their point of view; - Lack of recognition and career plan. As a consequence, we can say that the company's budget is harmed. Having a high turnover rate means higher expenses, such as admission and dismissal exams, training, and there are also expenses paid to advertise open positions on some platforms. The productivity of other employees can also be affected due to the need to pay more attention to the new employee or be overloaded when a co-worker leaves the company. We know that having an unhappy employee within the company is not productive for either side. If the employee is unmotivated, he will certainly not put in as much effort when performing his daily tasks and consequently may not pass on a good experience to the end customer. The company's credibility can be affected, since the employees who are hired are not retained. We are not just talking about providing new courses, training and offering a good salary. One of the things that keeps an employee motivated within the company is proximity and a good relationship with management. Productive support is needed, in a light way that maintains engagement between both parties.
How to calculate turnover
The calculation of turnover is in a way, simple. It is necessary to have at hand the number of employees who left and entered the company in a certain period of time. In addition, we also need to know the current number of employees. Having this data, the calculation works as follows: Sum of the number of admissions with the number of dismissals, divided by 2. In the end, it is necessary to divide this result by the current number of employees in the company. Thus, we can know the percentage of turnover within your company. But is there an ideal percentage?
Optimal turnover level and its benefits
It is difficult to say that there is an ideal turnover, we can say that it is relative because it depends on the company's retention policy and its segment. Some experts in the field of people management recommend that this percentage vary between 5% and 10% per year. Maintaining an acceptable level of turnover, we can highlight some benefits for the company: - Reduce the team's self-indulgence: when professionals work together for a long time, there is a greater tendency to self-indulgence, resulting in low delivery of results. Therefore, a low degree of turnover helps keep employees away from their comfort zone; - Renew the workforce: Those employees who do not fit the company's profile end up leaving, leaving room for new professionals with new ideas, power of renewal and more willingness to learn and work; - Allow those who are not aligned with the company's culture to leave: Turnover helps to drive away these employees who do not feel part of the cultural fit and consequently feel unmotivated in relation to productivity. Want to know more news about management, goals and objectives? Visit our blog.