How many times have you received an employee's resignation?
How many times have you had to start all over again in staff training?
Maybe there is something wrong in the company...
Staff turnover is a problem that should not be underestimated . But let's go step by step and try to better understand first of all what company turnover is, what the causes are and how to remedy it.
What is company turnover?
The term " turnover " can refer to different contexts, mainly in the world of work, finances and commercial activities.
Among all these meanings of the term, we focus today on staff turnover.
In the context of human resources and personnel management, turnover refers to the rate at which employees leave an organization and are replaced by new hires; it is an important indicator for companies, as it reflects stability and job satisfaction within the organization.
The definition of “turnover” or “attrition rate”
Literally translated from English as " turnover " or "turnover" , company turnover, also known as "staff turnover" or "staff turnover rate ", is a measure of the number or percentage of employees who leave their place of employment. job and are replaced by new hires in a given period of time.
Turnover is therefore defined as the process through which a company's employees leave (voluntarily or involuntarily) their jobs and are replaced by new hires.
Turnover is often also defined as "attrition rate" or "churn rate".
This indicator is expressed in percentage terms and calculated on a monthly, quarterly or annual basis.
How is the turnover rate calculated?
There is a simple mathematical formula for calculating staff turnover.
Turnover Rate = (No. of employees leaving / Average No. of employees) × 100
Where the number of departed employees is equivalent to the total number of employees who left the company in a given period and the average number of employees corresponds to the average of the number of employees present in the company in the same period of time.
Different types of staff turnover
However, the reasons why a worker leaves a company can be very different; consequently, there may be various types of staff turnover, which - based on the causes - can also be distinguished by "severity".
● Voluntary Turnover
When employees choose to leave the company for various reasons, such as better job opportunities, dissatisfaction, or personal changes.
● Involuntary Turnover
When employees are fired or removed by company decision, for performance reasons, staff reductions, or other corporate causes.
● Functional Turnover
When the turnover concerns low-performing employees.
● Dysfunctional Turnover
When the turnover concerns high-value or high-performance employees.
In most cases, in short, staff turnover does not have a positive meaning... Let's see why.
Negative consequences of excessive staff turnover
Although often underestimated, staff turnover - in addition to being a litmus test of company attractiveness and the level of well-being of workers - can have several negative implications for companies.
● Costs of recruitment, selection, training and integration of new employees.
● Decline in productivity , due to loss of experience and skills.
● Attrition of morale and motivation of remaining employees.
● Waste of time to train new hires.
On the other hand, a moderate turnover rate can also bring a breath of fresh air, with new ideas and skills, contributing to innovation and organizational renewal , but without exaggerating!
Another company turnover rate can only indisputably be an indication of some form of "malaise" on the part of the employees.
Turnover is a symptom, like fever: the causes must be identified to remedy it.
What causes turnover?
As we have already said for the phenomenon of disaffection at work and the burnout syndrome , the causes that lead to dismissal are often linked to shortcomings, shortcomings or incorrect or poorly incentivized work policies present within the company. .
If staff turnover is caused by the "malaise" and dissatisfaction of the staff, the only possible solution is, by contrast, the search for the "well-being" of the workers and - consequently - also of the company.
The word "welfare" itself therefore contains within itself the solution to the problem.
How to reduce staff turnover and manage, evaluate and motivate human resources in the company?
Companies can change, adopting different strategies to manage staff turnover effectively, through:
● monitoring of turnover rates , to identify the causes and develop targeted strategies.
● Retention policies , implementing programs aimed at increasing employee satisfaction and loyalty, such as professional development, recognition and benefits.
● Creating a healthier , inclusive, collaborative and positive work environment.
● Concrete support for employees' work-life balance , also enhancing free time .
● Economic supports.
Based on what has been said so far, the activation of a corporate welfare plan , with an adequate corporate wellbeing and welfare marketing plan , can therefore represent a unique solution to the problem.
Staff turnover is a key indicator of a company's working dynamics and whether or not it can retain talent .
Effective management, through welfare policies , is therefore crucial for the success and stability of the organization.