Staff turnover is a general concept that refers to all types of labor movement, from migration within one enterprise to transitions between different sectors of the economy.
This indicator reflects the effectiveness of management, and also indicates the stability and integrity of the organization. This article will describe the existing varieties of this phenomenon, what causes it, statistical analysis with evaluation of the results, and possible strategies for solving this problem.
There are several varieties of this phenomenon and each of them has its own characteristics.
- Physical – the actual number of employees who leave the enterprise for various reasons.
- Internal – movement between different positions, departments and branches within the same company. If this indicator is high, then we can draw conclusions about high mobility within the organization. This can facilitate the exchange of experiences, and in some cases have a positive impact on the psychological climate.
- External – the number of personnel who move from one company to another, as well as move between industries and even areas of the economy.
- Natural is a normal constant turnover of personnel and it amounts to 3-5% per year and is a normal process through which personnel are renewed without harm to the organization and the labor process.
- Excessive – a high turnover rate is an unfavorable socio-economic indicator, indicating the instability of the company and the ineffectiveness of the personnel policy.
Main reasons for staff turnover
With all the variety of reasons for high staff turnover, they can be divided into two main groups – external and internal. External ones include the deterioration of the socio-economic situation in the region or the policies of competing companies. Such circumstances usually do not depend on management, but this does not mean that you need to sit idly by – you can find the best way out of any situation.
On the other hand, there are internal factors, and they most often prompt people to change jobs. Here are the most common ones:
- non-competitive wages, instability of payments;
- poor working conditions (no air conditioning, strict work schedule);
- unfavorable climate in the team (conflicts with superiors and colleagues);
- lack of career growth and professional development;
- low chances of salary increases in the future;
- ineffectiveness of management;
- initiative and creativity are not encouraged.
Staff turnover norms
An average annual turnover of 3-5% of all personnel is considered normal. However, these are very general figures and acceptable ranges can vary greatly depending on the industry, the position in question and many other factors.
- Senior management – the norm is no more than 2% per year;
- Middle managers – 10%;
- Ordinary employees – 20-30%;
- Low-skilled – up to 50%;
- In trade up to 35%;
- In the IT sector – 5-10%;
As you can see, there is a clear pattern: the more responsibility and qualifications a position requires, the lower the percentage is considered normal for it.
Result evaluation
When an employee decides to quit, it is very important to find out his real motives. Many Western companies conduct interviews before dismissal, as this helps to establish a kind of feedback and correct mistakes.
Also in our country, there are quite common cases when, in order to avoid unpleasant situations, the director “offers” to write a letter of resignation of his own free will. In this case, it will be more difficult to figure it out, but if possible, you need to find out what the real motive was, even if it is done behind the scenes.
Ways to solve the problem
Before you act, be sure to understand why you have high staff turnover. To do this, they do special research or hire specialists from relevant agencies who will help understand and solve this problem. Here are some general tips:
Select quality personnel
Management often perceives an empty workplace as a loss and strives to fill the vacancy as quickly as possible. However, it is better to wait a little and wait for the ideal candidate. Always pay attention to the life principles and values of the applicant; they should be as consistent as possible with the corporate ones. Give preference to sociable people, as they will be able to quickly learn everything they need from their colleagues and go through the adaptation period more easily.
Create ideal conditions for newcomer adaptation
Statistics show that the first three months in a new job are the critical period during which most layoffs occur. The probationary period is precisely the time when a person determines his attitude towards a new job, and if the loyalty of his subordinates is important to you, then it is better to make every effort to adapt him. An example would be the introduction of mentoring programs, incentives, or gamification of the work process.
Adequate professional development programs
Development must be accompanied by corresponding career growth. Any person feels satisfaction when he develops and becomes more qualified and in demand. And it is you who must give him such an opportunity, since it is in your interests.
Ensure competitive working conditions and salaries
To do this, you need to conduct a study of the working conditions of your competitors down to the smallest detail – from cool water in the office to social conditions. package. Introduce a benefits and compensation system that would protect your employees and their families. For example, for manufacturing, an expanded insurance system would be a big advantage.
Provide ongoing training and professional development for managers
These can be either full-time trainers and coaches, or some external courses. No one will doubt that high-quality and professional management at all levels not only helps to increase profits and reduce costs, but also significantly improves the environment in the team.
Give your subordinates space for creativity and encourage creative initiative in every possible way
In order for a person to become a truly loyal employee, his duties must become for him something more than just work; he must feel that his ideas are important for the common cause. You can introduce a system of bonuses and rewards for showing initiative, but it is more important to simply respect the suggestions of your subordinates and demonstrate in every possible way that this is valued by your superiors.
Take steps to improve interpersonal relationships
A variety of team building and corporate events are well suited for this. However, you shouldn’t go too far – if a company has organized a banquet for employees, then it’s better to let people socialize and take a break from everyday work. At the same time, the practice of conducting training during corporate trips to nature has proven itself very well.
Experienced managers understand what high staff turnover means – this is a very serious problem for any enterprise, and it always entails large losses. It is necessary to constantly monitor and, if possible, identify the weaknesses of your personnel policy and work on mistakes. After all, any commercial organization, be it an office or a production facility, is, first of all, the people who work in it.
Interesting facts about employee turnover
- Staff turnover in an organization is also called the “revolving door index”. This expression comes from American corporate culture, since many office buildings in the United States used to have revolving doors.
- Some analysts also highlight psychological fluidity; it is also called hidden. This is when, in fact, a person remains in his position, but does not consider himself involved in the company’s activities, or experiences hostility towards it. Unfortunately, most managers underestimate the seriousness of this phenomenon, although it often causes permanent losses.
- Recently, a trend of “departmental care” has emerged in the domestic labor market. In this case, the entire team leaves their place of work and joins a competitor. Undoubtedly, such a turn of events could be fatal for the entire enterprise.
