ORGANIZATIONAL CANCER. TURNOVER
Pedro Elu
pedro.elu@elhuconsulting.com
It's good business to have an environment that enables staff to develop in our company.
However, when staff leaves the company voluntarily, this creates one of the more hidden costs that impair the profitability of companies : voluntary turnover, which is the number of people who decide to stop working in our organization.
In other words, voluntary turnover is the rate that relates to the number of people who decide to stop providing their services to the company and waive , with respect to total staff integrated the company at the beginning of a period.
No doubt it is healthy to have new staff to incorporate different ideas ... but to a certain limit, since when the number of newly recruited staff is very high, is required by them, an extra time and effort to learn about the organization and the business.
I've seen companies where the cost of voluntary turnover was becoming the equivalent of 20 % to 30 % of total payroll .
When voluntary turnover is very high we incur costs or direct costs of recruitment, selection, hiring and deteriorating staff productivity due to lack of knowledge of the domain or organizational processes . Additionally, wastage , waste and rework increase.
Once, estimated the total cost of voluntary turnover for a company, which was used to living with a high turnover, as it in some way , and found that these costs represented 30 % of what they paid in payroll . Most of the cost was made up of sales not achieved due to lack of training and mastering processes. Efforts to reduce voluntary turnover represented a direct savings in recruitment, selection, recruitment and induction in addition to increased sales, domain derivative processes and improving productivity of each person.
An agribusiness company operating with a high turnover, like the rest of its competitors in the sector identified as an experienced partner had a ten times greater than a newly hired employee productivity. So he decided to implement a plan to reduce turnover and increase retention of staff and thus the domain of production processes . The program was to identify the aspects valued employees and offer them as part of the compensation package. Among the items included as part of the company 's compensation package were training for families of employees in trades such as pastries, plumbing, electrical, etc. , allowing them to have additional income to the partner company .
This organization , scored higher productivity than other companies in the sector and area ; additionally achieved a positive social impact on the community in which it operated, what facilitated attract talent.
High turnover often is the result of several factors, among which are the following :
- The bosses. The leadership of the head is essential to establish a suitable working environment. And when leadership is lacking , people " give up the boss' most often: Recent studies show that it can reach up to 40% of cases. This is one of the main causes of resignation of employees. Towards the interior of an organization is not so clear at this phenomenon as a bad boss , the person looking for another job , but disguises his reasons and often mentions that waiver because another company offered a better salary . The reality is that the situation with your bad boss in the company's home prompted him to look for alternatives.
- Staff development in the company. For most people work is the main source of income , providing a role in society and opportunity to develop. Particularly in the early days of the occupation, learning is a factor highly valued . When opportunities for learning and professional growth opportunities presented in the workplace , then seek other employment options .
- Compensation . Remuneration or compensation is another factor influencing people decide to stop working in a company. Depending on the age and personal circumstances can be a very important factor . In general it is not the factor that most often propel people to seek other work.
To retain staff , and to create a pleasant and productive environment , we must investigate the real reasons why staff leave the organization . It is advisable to interview people who give to identify the real causes of your decision.
The rotation generates and these costs can be high ... It is therefore essential to ask the right in this area in order to know how is the organization itself and so make the necessary changes in time measurements.
