Economics/Business

Turnover in companies/Main causes/consequences/How to reverse

Have you ever wondered what causes turnover within a company ? This is a term often used in the day-to-day of an organization, but it can be something that has negative consequences if your index is too high. Turnover in companies

Also known as turnover, this action can lead to poor results within an institution. This is because many managers are still unaware of their causes, which goes far beyond just dismissing an employee. 

Thinking to clear up your doubts, we will address in this post what causes turnover. In addition, we will show actions to decrease this index. Come on? Good reading!

After all, what is turnover?

The term turnover means the rate of hiring and firing that occurs within a company. We know that these actions are part of the routine of any organization. However, when the rate is too high, it ends up being negative for the institution’s image . 

Having a high turnover rate shows that a company does not know how to retain its talents. However, having such an image is not good for the competition. 

However, this high turnover can be influenced by internal and external issues. Some points that can raise this number are: 

  • Large number of selective processes;
  • Demotivation of employees;
  • Bad organizational climate ;
  • The organization is not committed to its team;
  • Low employee compensation and bad benefits;
  • Having bad people management. 

Main causes of turnover within an organization 

Now that you know what it means, you should ask yourself what causes turnover within a company, right? You need to study your organization’s scenario to get the ideal answer. Turnover in companies

However, there are causes that are common to all companies. Know the main ones:

internal causes

Within a company there can be several factors that aggravate turnover. However, when the scenario is analyzed correctly, it is possible to reverse this situation. Among the controllable causes are:

  • Remuneration;
  • Work conditions;
  • Not having the qualification or training to qualify a team;
  • Inappropriate planning;
  • Bad internal relationships;
  • Poor quality people management;
  • Not valuing the team;
  • Not having a career path.

However, there are factors that are semi-controllable. Look:

  • Low employee income;
  • Team dissatisfaction;
  • Loss of knowledge and experience of the professional who was dismissed;
  • Bad organizational climate .

But there are still factors that are uncontrollable. However, they do not depend on either party. An example of this is the death of a team member.

external causes 

There are also external causes. Are they:

  • New job opportunity;
  • Loss of connection with suppliers and customers;
  • Economic crisis in the country.

What are the consequences of turnover for the company?

As we have seen, it is not what causes turnover, but what factors do. After all, they are divided into three groups. But as we realized, most of them are inside the company. Turnover in companies

The impacts of this high rate of entry and exit of employees in a company generate negative consequences. This can leave an organization unstructured.

Are they:

  • High expense with dismissal and hiring of employees;
  • Decrease in the company’s intellectual capital;
  • Decrease in production or sales, leading to a decline in finance;
  • Training expenses for new employees;
  • Team demotivation.

Therefore, when you realize that this rate is too high, it is necessary for the HR team to review some internal policies, such as hiring, compensation and also communication. 

How to reverse the high turnover rate?

The role of HR in this rotation scenario should be to eliminate the insecurity of the entire team . But for this it is important to be transparent with all employees.

The ideal way to reverse this scenario is, initially, to strengthen the feedback culture . After all, a frank conversation between manager and employee can greatly improve relationships. That way everyone will know where to improve.

However, other actions can be taken, such as:

  • Create a policy of positions, salaries, training and employee monitoring to see their evolution;
  • Conduct an organizational climate survey to understand which points can be improved;
  • Have a joint action between HR and managers for better monitoring of teams;
  • Have a training schedule for your team;
  • Create ideal candidate profiles to fill a vacancy;
  • Have a clear and more automated selection process to avoid hiring people who get discouraged halfway through because they don’t agree with company policies;
  • Offer your team flexible hours or the possibility of working from home in a few days;
  • Strengthen the feedback culture;
  • Periodically review performance;
  • Invest in the quality of life of your employees;
  • Map competencies;
  • Improve internal communication to make it clearer;
  • Conduct shutdown interviews.

Before putting your actions into practice, it is important that HR is fully strategic . After all, they are well-planned ideas that will be executed with mastery to reduce the turnover rate within a company.

Remember that there is no cake recipe to be followed. This is because each company has a history and the analysis diagnosis will never be the same for all. Turnover in companies

Monitor indicators for better results 

Above we show you how it is possible to reverse the high turnover rate within a company. But to help you take more effective and assertive actions, we advise you to monitor some indicators.

After all, they will help you to assess the real reasons for an employee’s departure. See which indicators you can monitor:

  • Absenteeism rate ;
  • Calculating the turnover percentage.

In addition, carrying out periodic climate surveys can help you to see how the team’s satisfaction with the company is going.

As we have seen, what causes turnover can cause internal or external factors. But to reduce this rate, you need to take careful action. Therefore, planning and scenario analysis are perfect starts.

Initially you may find it difficult to lower this rate to retain your talents , but with dedication it is possible to achieve satisfactory results. Turnover in companies

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