High employee turnover affects more than just employee productivity. Employee turnover also affects the employer branding of your company. Due to the prominent level of employee turnover, business costs increase, and profits decrease.
The cost of replacing one person is usually more than his monthly salary – with most of the losses associated with lost profits. Replacing thirty people with a salary of $677 will cost the company an average of $30,500. Therefore, most large companies keep records of staff turnover indicators and analyze the change in turnover rates over time and by the department.
When one or more positions are frequently vacant and vacancies need to be filled regularly, it is considered that there will be a high turnover of staff.
Voluntary rotation occurs when an employee voluntarily leaves the company.
A forced rotation occurs when an employee involuntarily leaves the company.
In some cases, the root cause of churn is because an employee has decided to leave their list.
However, this can result from how your company conducts its business in many cases.
The more retention issues you have, the more likely you will notice a change in energy in the office.
The low productivity of your employees is a direct cause of constant employee turnover. This is one of the most visible signs that affect the company at a basic level.
With constant staff turnover, it is not easy to maintain an atmosphere of trust and confidence between employees.
In addition, failure to create a shared corporate culture is at risk with high employee turnover.
The amount of employee turnover for a company is significant.
Every time an employee leaves, the HR department must re-enter the recruitment and selection process.
Since employee rotation is quantifiable if you look at your turnover and the cost of hiring, you will see a direct correspondence between the two.
The goal of many companies is to reduce the average turnover. This can be done in distinct methods, depending on what works best for your company.
So, what does high turnover mean?
We can say that every time an employee enters or leaves the company, there is a staff rotation when a position is constantly filled and then abandoned due to high turnover.
High turnover of employees has serious negative consequences for the company. If you have a high turnover, it is essential to stop and analyze why this is happening.
You can then act and make the necessary adjustments to bring it down.
To create an action plan to prevent high employee turnover, you must consider the data received from all employees who left the company, at least in the last year.
If you have more time and data, you can also look further to analyze employee turnover over a more extended period.
The calculation should not include those who left the company for reasons such as retirement. The turnover rate does not take these cases into account.
When analyzing employee turnover, we are only interested in other cases, such as when people leave because of dissatisfaction with their job, duties, or the company.
As the name implies, such a rotation occurs when an employee voluntarily leaves the company.
The reasons for this may be different.
Most often, the reasons are they have found a better job, disagreements between colleagues, they feel undervalued or underpaid, they cannot adapt to the company culture, etc.
You will never be able to satisfy everyone, and the condition you propose will not suit everyone.
However, your duty as an HR manager is to create a comfortable atmosphere in the company.
In addition, it is essential to recognize the merits and achievements of your employees and praise them so that they feel recognized.
The above causes occur after an employee is hired, but sometimes voluntary rotation can occur due to a poorly planned and executed recruitment process.
In this case, you can hire an employee quickly without thinking about whether he fits the position or the company culture.
Forced job change
When an employee leaves the company, he falls into forced rotation. It is easy to place the blame on a departing employee.
However, as a company, you must ask yourself if this situation is due to something you did wrong. This may include a lack of necessary tools and training, resulting in the employee not being able to perform their tasks properly. These involuntary rotations cannot be 100% avoided, but it is best to minimize them as best as possible.About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.