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Keys to reduce the turnover rate in the company

ANDn an environment as competitive as the one we find ourselves in today, for companies it has become everything a challenge to attract talent. But it is not enough to attract good candidates and integrate them into the workforce, organizations must also be able to hold them. It is therefore important to reduce turnover in the company.

Hence, the so-called turnover rate has become so popular. It is important that companies know what theirs is and try to reduce it. Let's see how they can achieve it.

Table of Contents

What is the turnover rate?

It is a fact that tells us how many employees have left the company within a given period. This includes both voluntary and non-voluntary terminations. In other words, we will take into account those workers who have decided to terminate their employment contract, but also those who have retired and those who have been laid off, among others.

To calculate it we can use a simple formula:

Annual turnover rate % = (employees who have left in that period / (employees at the beginning of the year + employees at the end of the year)) x 100

Why is it important to reduce turnover in the company?

If there is a lot of movement of personnel leaving the organization, this has direct and indirect costs for the same.

Every time a worker leaves, a recruitment process must be launched, which implies an investment of time and money. On the other hand, while the position is vacant, the company has to redistribute the tasks associated with it among the rest of the employees, which can lead to the payment of overtime and, in addition, affect the well-being of its workers.

All this tells us that For companies, it is always much better for employees to stay in their jobs.. Because it not only saves costs and avoids other problems, but it means that Recruitment and adaptation processes have been satisfactory for both the employee and the employer.

Reasons that can increase the turnover rate

When a company detects that its turnover rate is high, it must start thinking about taking measures to tackle it. But, before you get to that point, you need to understand the main reasons that are causing your employees to leave.

Although each one will have their reasons, there are a series of issues that often explain why the workers themselves decide to leave their jobs:

  • They have received a better offer in another company.
  • They don't feel valued.
  • Inexistence of the possibility of developing a professional career.
  • Bad work environment.
  • The job is not what they expected.
  • Insufficient remuneration.

The best way to get information about why employees are leaving is to ask them directly. When a worker reports that he wants to leave, it would be convenient to hold a private meeting and ask (without pressing) about the reasons that have led to that decision.

If we find that several employees have decided to break their contract for the same reason, it is clear that we are facing a problem that must be solved.

Tips to reduce turnover in the company

Once the cause that is giving rise to casualties in the company has been detected, we must treat it first. However, the organization also needs to take action at other levels to improve the job satisfaction of its employees and thus reduce the risk that they will decide to leave.

offer flexibility

Flexibility has become one of the factors that employees value most. In fact, companies that offer flexible working conditions have an easier time attracting and retaining talent. 

Flexibility can be offered in different ways. For example, allowing telecommute a few days a week, compressing the work week in four days, offering an intensive day or eliminating the rigidity in the hours of entry and exit.

Measures of this type allow workers Integrate your work into your life, do not make your work the axis of it. They have more time for themselves and their loved ones and this makes them feel much more comfortable.

Prioritize conciliation as advice to reduce turnover in the company

Flexibility is a measure in favor of conciliation, but much more can be done so that employees achieve a suitable balance between their personal and professional lives.

To begin with, you can apply digital disconnect measures. Preventing team members from receiving work-related calls or emails outside of their business hours.

Another way to encourage conciliation is avoid, as far as possible, overtime. Make sure everyone goes home after the stipulated time.

Define and cultivate a good corporate culture

Companies are much more than entities created to earn money and to which employees go to work. They are entities that operate within society and must take into account the values of the environment in which they operate. Therefore, they must have a corporate culture. 

It is made up of multiple factors among which we can highlight the presence of a series of values.

Each company must have your own corporate culture and make sure this is much more than words. Measures must be taken so that these values and social objectives are achieved. The more affinity there is between that culture and the employees, the more comfortable they will feel when going to work.

For example, if an organization has included health care for its employees within its culture, it should adopt measures to help it achieve this: offer health insurance, give seminars on disease prevention, encourage sports practice, etc.

Promote development opportunities as an example to reduce turnover in the company

No employee wants to spend their entire working life in the same position in the same company, everyone wants to progress. We all aspire to have professional challenges and new stimuli.

It is important for companies to be able to offer their workers the opportunity to develop a professional career. Even if a promotion is not possible, at least an improvement of the skills and abilities of the employees should be feasible.

Companies that offer training to their employees and strive to improve their skills are much better viewed by talented people. And even more so if the training does not focus only on hard skills but also takes into account the soft skills.

Hire the right people

We cannot ignore the fact that one of the causes that motivate the rotation is that there has been a good adaptation of the person to the job. This means that something has gone wrong, be it the recruitment process or the adaptation process.

If the right candidate has not been chosen from the beginning, neither he nor the company will be satisfied, so one of the two parties will end up breaking the relationship.

To avoid this, it is advisable to do detailed and clear job offers, that allow applicants to get a real idea of what they are going to find if they end up working in that company. On the other hand, it is essential that the personnel selection process takes into account the possible adaptation of the person to the company at all levels and not only their training and/or experience.

Offer a good remuneration as advice to reduce turnover in the company

Although employees do not move only for money, compensation is very important when deciding to work or leave a site.

What companies should value is that Remuneration does not only include salary in economic terms. Today the emotional salary has a great weight. Everything that the company can offer the worker and that does not necessarily have an economic component.

Some examples of emotional salary are power having the afternoon off on the children's birthday, training plans, telecommuting, volunteer activities promoted by the organization, social benefits such as a retirement plan, scholarships for studies, etc.

A good emotional salary does not compensate for a bad salary economically. The best results are obtained by combining fair and adequate financial compensation with measures of emotional compensation.

Improve the work environment

The work environment is the environment in which the work activity takes place. The better the relations between the employees, the better that climate will be and the more satisfied the staff members will be.

To achieve this, measures must be taken against toxic employees, promote communication at all levels and facilitate interaction between members of the different departments.

Lowering the turnover rate is an important goal for all companies. We have verified that applying a set of good practices can lead to very positive results. 

A low turnover rate is synonymous that the company is doing well and that its employees feel comfortable in it, and we already know that happy and motivated employees are one of the best competitive advantages one can have.

Hirint, an intelligent evaluation platform, helps you reduce unwanted turnover in companies by improving points such as hiring the right people, improving your corporate culture, among others. Book a meeting with our team HERE and we tell you how to do it.

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